Womack to Southwestern: Avoid "Claim Denied"
Most business risks are not covered under a commercial general liability contract, insurance agent Scott Womack warned Southwestern Fastener Association members.
“My 25 years of insurance experience lead me to believe that there are numerous promises made in most all Purchase Orders and Supplier Contracts that are not covered by insurance of any kind,” the certified insurance counselor from Sentry Insurance explained. “Keep in mind that being liable – with or without a contract – does not mean one’s insurance contract will respond.”
Womack urged fastener manufacturers and distributors have attorneys familiar with insurance examine all contracts and Purchase Orders.
Customers may still require their terms, but at least you know what your liability is, Womack noted.
“It’s possible you might decide to purchase products recall or manufacturers Errors & Omissions coverage to transfer some of the risk to an insurance company,” Womack said. “Or you may stop selling to some of your customers. Or you can self insure.”
FIN Subscribers CLICK HERE for more insurance advice from the Southwestern Fastener Association 2015 spring conference.
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