Boat builder's insurance?

[BigCat]

It seems that nobody wants to insure new boat builders. I don't understand why, in my case, because we are building under USCG supervision, so we wouldn't be allowed to build a bad boat. Anybody have any leads?

[SamSam]

The Coast Guard isn't going to have to defend you if/when someone sues. Also, you might have too much faith in the competencies of government agencies.

I was told back in 1984 that a person was liable for anything they build (boats, stairs, planes, etc) for as long as the thing exists, that insurance would have to be carried for as long as the thing exists, and that courts did not recognize pre- release of obligations, i.e., having anyone that bought your product sign a waiver of responsibility, saying they take full responsibility, etc.

I was told if insurance was available, it would cost so much as to make the product too expensive to sell to begin with.

The only things I can think of offhand is to incorporate or something to isolate your personal property from being sued, and be prepared to lose everything invested in the business possibly fairly easily if someone decides to make a case. The other thing is to not sell a finished product, sell a "kit" or something that takes some (5-10% ? ) effort on the customers part to "finish" thereby transferring the liability to them.

[Sam III]

BigCat,

I started up last year and my insurance was through the roof. Builders insurance is a very special market. Took me 6 or more weeks to find an insurere and was not cheap.

Workmen's comp is even worse. I can insure $1,000,000 in office payroll for 1/2 of what it costs to insure $100,000 in boat builders payroll.....

Sam