racing engines

[rtw]

My husband wants to start his own company
building racing engines. I am working on all the paperwork including filing for corporation status. My concern is if someone
purchases and engine, and heaven forbid, the
engine fails and causes a wreck and the driver is seriously injured. How can we
protect ourselves from being sued. Are there
hold harmless agreements the customer can
sign? And will these hold up in court?

 

[GURUDUDE]

I NOT A LAWYER...SOMETIMES I WISH I WAS...SOMETIMES...

BUT IN ANY CASE, AN AGREEMENT COULDN'T HURT IF IT'S PREPARE WELL AND HOLDS WATER...OR UP IN COURT...

BUT I WOULD CONSIDER, INSURANCE COVERAGE...IT MAY WORK BETTER...OR AT LEAST GIVE ANOTHER LAYER OF PROTECTION...

AND A CORPORATION WILL BECOME THE THIRD LAYER OF INSULATION FOR ANY PROBLEMS...

 

[advisor2@adviceco]

In your situation, most hold-harmless agreements would probably not work. You might be able to limit your liability in some very well defined areas however. It would take a specialist in this to draw up such a document.

In addition to a corporation, you could consider a limited liability company. It is a bit simpler, and works as well.

 

[ben]

its not "if" someone... its "when" someone
Product liability insurance to me is the way to go. Nothing will stop someone from taking you to court.You need protection for when it occours.

I've built dozens of engines working in the old IMSA camel GT series and numerous hot rods.V8 240z's 400CI s-10 4X4 etc.

GO FOR IT !!!!!!!! hire a good lawyer and good luck! and remember "the customer is always right" Ha Ha

PS remember this business is all about reputation so be careful building something you know is "junk" Just because the customer wants a $5000 ; "$10,000" engine.