AVR-Chat

John, 

Interesting question.  I am in the medical field in the US, and 
around here it is a medical liability feeding frenzy.  It costs a 
ton, evne when one has never had a suit filed.  My understanding is 
that other countries are not nearly as bad, but still if you cause a 
major disaster, then you will be asked to pay, even if you are 
innocent.

For what I pay in medical liability, an aquaintance told me that it 
is the same cost for his company's (70 million$ a year gross) 
coverage, and they do stuff that can create a major toxic disaster.

So, I bet the coverage can be had easily and probably relatively 
cheaply.

The other option is make yourself judgement-proof.  If the 
corporation has no significant assets, then a judgement will 
bankrupt the corp.  You walk away and start business all over 
again.  You just need to insulate yourself from the business.  That 
might be hard if you are the sole proprietor, or are the owner of a 
small corp.  If that is the case, then you need to make YOURSELF 
judgement proof.  That is harder to do.  The laws in the US vary 
somewhat on this, but where I live the courts can not take stuff 
that is held in joint ownership with your spouse, unless the spouse 
is also liable (never work with your spouse, and have a spouse that 
you can TRUST!!!!)  So, you own nothing in you own name except the 
business, and the business owns nothing except a few pieces of 
equipment.  Lease the rest of everything you need, and pay yourself 
a salary with the rest of the capital.  Net value of you and your 
business:  nill.  Since I _think_ these laws are based on english 
common law, yours may be similar.

-Tony




--- In AVR-Chat@yahoogroups.com, John Samperi <samperi@a...> wrote:
> G'day all
> 
> With the cost of running our businesses ever increasing
> I have been re-assessing my business insurance requirements
> an have been canvassing ideas from a few colleagues. Then
> I thought I would cast the net wider, and even if only the
> Australian conditions would be applicable, I would not
> mind receiving overseas' views and experiences.
> 
> I'm not asking about the round of the mill fire, income,
> sickness insurance but more specifically about public
> liability, product liability and professional indemnity.
> 
> The story so far:
> 
> Worker's compensation is compulsory in Australia if
> you operate as a company. Should look at some other
> form of accident insurance if you don't.
> 
> Public liability and product liability are pretty much
> tied together for those of us that manufacture some goods.
> Those of us who simply design or write software for
> third parties may get away with public liability, HOWEVER
> read on.
> 
> The old fashioned 5 million dollars insurance is no longer
> good enough and a 10 millions dollar insurance or even 20
> million is necessary.
> 
> THE KILLER PART!! If a disaster happens and someone dies
> or your product starts a fire that burns down a shopping
> centre or other major disaster and the fault occurred
> because of a faulty design or formula (software bug??)
> then you are NOT COVERED by your public and product
> liability insurance. This is when you need professional
> indemnity insurance. A friend of mine almost had a heart
> attack when he checked his insurance and found out that
> he did not seem to have professional indemnity insurance.
> (he designs and manufactures his own products)
> 
> So far it seems that only GIO, NRMA and CGU seem to
> offer the above types of insurance in Australia.
> ABBI does not offer any insurance for electrical engineers
> or anything else that has to do with electricity.
> 
> I would very much appreciate your views, experience, knowledge,
> etc. and which insurance companies you deal with apart from the
> above.
> 
> If only I knew all that is required to run a business 15 years
> ago.....
> 
> Regards
> 
> John Samperi
> 
> ******************************************************
>                          Ampertronics Pty. Ltd.
>    11 Brokenwood Place Baulkham Hills, NSW 2153 AUSTRALIA
>           Tel. (02) 9674-6495       Fax (02) 9674-8745
>                 Email: samperi@a...
>                   Website  http://www.ampertronics.com.au
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