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Playing It Safe

Bankruptcy_court Many small business owners that are just starting out feel they can not afford to protect themselves against every risk. 

I wonder what business owners are thinking when they feel they do not need Products and Completed Operations Coverage.  I usually get the response, “Well, that stuff is just too expensive and if something goes wrong I’ll just file for bankruptcy and start over.”

My question is, “What do you do if you have a product that is wonderful and just needs a little twist here and there to put you on the next cover of Time magazine?” 

You just filed bankruptcy and have no way of getting this product back into production with the correction it needs. And now a competitor has made alterations and gets it out into mass production. 

If you had purchased Products Liability Coverage there is a good chance that you could have sustained the loss and continued on in business.

If you are a small business owner that makes a product, do not overlook this particular part of your coverage.  It is very important to look at your overall risk factors and determine where to spend your premium dollars. 

I know in the news recently that a very well-known baby crib manufacturer is having one million cribs recalled.  Turn on your television and you’ll hear about all the toy manufacturers that are going through recalls due to dangerous levels of lead.

If it can happen to the big businesses it can happen to the little ones, too.

Look to the next post for more details on Products Liability Coverage and further discussion concerning Completed Operations Hazard.

Flickr photo by Hess Kennedy

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