Quote:
Originally posted by Cal Metal
Kit Car manufacturers don't carry product liability insurance, as far as I know. I know from talking with a couple of very reputable Cobra manufacturers that it would add $1,000 to $2,000 to the cost of the car.
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Cal, I'm not a car builder or an insurance man, but I will say that car builders are crazy if they don't carry liability insurance. One lawsuit could put a car builder out of business, as well as get their personal assets(I said COULD, I am aware that personal property can be somewhat protected).
As a home builder I carry a $1,000,000. general liabilty policy and require my subs to carry $1M per occurence policy with my company named as an additional insured. In my business if mold grows in a home you construct you could lose millions(it has happened).
Just think if the FFR build manual had some bad directions and people lost there lives when the improperly built car fell apart, or a frame weld failed on a SPF and people were killed or injured. It could happen, and in todays climate there would be a $50M lawsuit.
I'd say I pay atleast 40k per year for business related insurance, kinda sucks since we have never had a claim(5 years in business). I wonder how much my insurance costs would be if we had Tort Reform?