NLIC.org

Russell Said:

Product Liability Insurance for a store?

We Answered:

Your agent is correct. Each of your vendors should have their own general liability insurance policy, and you should make them prove it with certificates of insurance before you allow them to rent the space. If you own the location, you may want them to add some sort of fire protection for rented premises too. It's comes automatic on a lot of general liability policies. You don't want to be responsible for the products or actions of the people renting space in your store.

For a good example, look at how the malls rent out the small kiosks that you see in the center of the aisles. Each of those small vendors/business owners are required to have a certain amount of coverage before they can have the space, and they need to prove it with a certificate. You should make sure they have at least a one million dollar general liability policy.

Leah Said:

what is a proof of product liability insurance ?

We Answered:

The "proof" is a certificate of insurance that you'll get form your agent, after you buy general laibility insurance that has product liability insurance included in it. How expensive it is depends upon what kind of products you sell, whether they are imported and of good quality, and how many you sell, along with your claims experience (more losses you've had, the more you will pay).

Eddie Said:

Do I need product liability insurance?

We Answered:

Unfortunately, probably... if someone chokes on a necklace, you don't want to be responsible.

I own a small clothing line and have the same problems. It was a bit of work to find an insurance plan that I could afford. I can give info on my insurance agent via email (I don't want announce his info to the world). My email is my yahoo user name at hotmail.com