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Sorry about the response DriverInc.:eek: I have been extremely busy, but I hope this will answer any questions you or anyone else might have about it. If not, just let me know and I can tell you as much as I know!:)

Yes, I did sell insurance a couple of years ago. I mainly sold life and health insurance, but was also licensed to sell property and casualty insurance. So I don’t know a lot about product liability insurance or business insurance for that matter, and really only studied it when I sold my policy to myself! But I would be happy to share what I do know.

Product liability is something that affects anyone selling products that will eventually end up in the hands of a consumer, whether that be manufacturers, wholesalers, or a retailer. Selling online is retailing.

So any person/company involved in the chain of a products life that will be sold to the public is open to liability. So if you are buying blank Gildan’s from a company and something should go wrong (I’ll cover specifics later), everyone involved can be sued. That’s Gildan, the wholesaler you bought the Gildan’s from, you, and if you sold them to a store that sold them to the consumer, the store also.

Product liability is a state matter. There are no federal laws concerning product liability, so the laws will vary depending upon what state you are in. Someone bringing liability claim must prove that there was some defect in the product. Even though state laws vary on liability, those defects usually fall in 1 of 3 categories: Design defects, Manufacturing defects, and Marketing defects.

Design defects are probably not that big in t-shirts, and I can’t think of something inherently wrong with the actual design of a t-shirt that would make it defective.

Manufacturing defects definitely can affect us. I know there are some here that sell shirts for babies and toddlers. If you happened to apply some flocking or other embellishments that may come off after the product was sold, and an infant were able to take it off and choke on it, you very well could be found liable. At the very least be involved in a lawsuit. And once a jury gets a case, you never know what might happen. So protection in the form of insurance is definitely a consideration.

Marketing defects are those that deal with things such as not warning about the dangers of a product, or not labeling products properly. In our business that would specifically relate to the labeling and relabeling of shirts. The FTC has standards pertaining to what should be included on the labels of fabrics, including t-shirts. If someone is allergic to a certain fabric, and you mislabeled your shirt or relabeled it incorrectly, you could be liable for medical bills for the consumer.

If you are selling to retailers, yes they have their own insurance, but you must remember that EVERYONE involved in the process of bringing an item to a consumer can be held liable if there is a problem. The same is true if you sell online. You are the retailer bringing that item to market, directly to the consumer. If a problem arises from shirts you use, you can’t just say “it’s the manufacturers fault, I’m just selling it”.


Product liability insurance is not expensive. Especially because the risk of injury is minimal in regards to selling t-shirts, but you would have to contact an agent in your state to get an accurate quote. It’s definitely something worth looking into.;)

Hope this helps.
 

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Some of the big ones have it, but some don't. You would just have to check.

There are also some companies that specialize in it.

When you shop for it, make sure that you tell them that you specifically want Product Liability Insurance. Some companies will offer General Liability Insurance but you would have to add Product Liability to that policy. Other companies include it with a General Liability policy. So just make sure that what ever you get, whether it has to be added on or it's included, that you have Product Liability.
 
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