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Concerned about Liability

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watts10299

Guest
What is the name of your state? MN

Hello,
We are researching the startup of a company that builds Kit cars and then sells them.

The issue of liability came up.

How can we protect ourselves of the liability of someone getting in an accident and sueing us?

I have talked about an S-Corp and insurance, but I am finding it may be difficult or very expensive insurance based on what we are doing.

Any thoughts would be appreciated.
thanks, Jeff
 


HomeGuru

Senior Member
watts10299 said:
What is the name of your state? MN

Hello,
We are researching the startup of a company that builds Kit cars and then sells them.

The issue of liability came up.

How can we protect ourselves of the liability of someone getting in an accident and sueing us?

I have talked about an S-Corp and insurance, but I am finding it may be difficult or very expensive insurance based on what we are doing.

Any thoughts would be appreciated.
thanks, Jeff
**A: what is a kit car? Is this like a soap box type where one builts it and then rides it down a ramp?
 

JETX

Senior Member
As a manufacturer of kit cars (complete or not), you WILL have liability issues. That is the 'nature of the beast' of any business venture... and something that you have to factor into your cost of business. For example: "For U.S. producers of private aircraft, liability insurance expenses now average $100,000 per plane produced, leading Cessna to cease production and Beech Aircraft to all but eliminate private aircraft production as well."

For more, see:
http://www.econlib.org/library/Enc/Liability.html
 
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watts10299

Guest
JETX - thanks for your reply it was very informative. I read the article you sent.

It leads me to ask how any small company deals with this issue. As the article states it is very much a deterant to startup this business.

Thanks for the info.

HomeGuru - for your info a kit car is a replica of other cars, such as Lamborghini's or the Cobra, plus many others but at a fraction of the cost.

http://www.kitcar.com/

Thanks all,
Jeff
 

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