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what kind of liability insurance do framebuilders carry?(6 posts)

what kind of liability insurance do framebuilders carry?gtx
Apr 3, 2002 8:45 AM
for example, what does someone like Richard Sachs or Brent Steelman pay? And what about small companies that farm out their production to other builders - what does someone like Rivendell pay? And how much does it translate to per frame? Is the cost of this kind of insurance going up? What kind of coverage do they get? Curious... thanks
Interesting Question -Me Dot Org
Apr 3, 2002 9:16 PM
...One that appears to not have a ready answer. Maybe you should call a frame maker and find out. Establish neglegence could get tricky...
re: what kind of liability insurance do framebuilders carry?RideLots
Apr 4, 2002 6:57 AM
I do a lot of insurance and product liability work. I don't have specifics on bike makers, but I do know that the coverage could vary widely. Basically, the maker decides how exposure it wants to cover, then the insurer/broker works up a quote based upon the insurer's underwriting (that is, guess-timates of risk and what it takes to pay for it). The insurers might well take into account the sales figures, numbers of bikes sold, loss history of that maker and the industry in general, litigation costs, etc. If the quotes come in too high, it might well reduce its coverage, and vice versa. It'll likely make the decision based upon the assets it has to protect. If you ain't got nothing to protect, who needs insurance? At the other extreme, a huge maker might self-insure, that is, bear the risk largely itself, with the possibility of excess coverage or re-insurance for very large risks.

Insurance doesn't usually cover punitive damages, intentional acts, or breach of contractual warranties, typically only negligence and strict product liability.
Why not ask some builders?mickey-mac
Apr 4, 2002 7:08 AM
I've seen liability insurance at least mentioned in topics on the Framebuilders Archives. Richard Sach, Carl Strong, and Dave Bohm of Bohemian are at least occasional contributors. I'm sure someone would be willing to provide some information: http://www.phred.org/pipermail/framebuilders/

BTW, I've found this site to be a fascinating place to lurk. They have some terrific debates, but the most interesting part is observing the free exchange of frame building information between builders who are in a competetive market.
thanks guysgtx
Apr 4, 2002 9:31 AM
there was a half decent article on this in BIKE a few months ago--effect on the bike industry as a whole--but I was curious how it effected the little guys. Seemed like people were talking about this more ten years ago--with the lawyer tabs on forks, etc. And thanks for the link to the archived phred list--I was on the mailing list for a while but this is easier to deal with.

rock on
re: what kind of liability insurance do framebuilders carry?Nessism
Apr 4, 2002 5:36 PM
The framebuilders list is the place to get this informtion. I did a search on "insurance" and turned up quite a bit of information.

I think many builders go through the national bicycle dealers association to get coverage.
http://www.nbda.com/

Cost was something in the $1500-$2200 range per year for basic coverage. Of course, one could always pay more for more coverage I should imagine.

Ed