Years ago I had the idea that forming a framebuilder guild would be helpful, the ability to share resources, group buys, tools, insurance.
I wonder how many people here would be interested in such an organization
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That has been tried but didn’t get very far. Everybodies business has different needs. Having the forum where we can share knowledge is probably the most organised we will get.
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Another problem with the waiver idea is that even if the person riding the bike doesn’t want to sue you, their insurance company can. It is call a “subrogation clause”. Let’s say someone gets hurt and their health insurance company has to pay out to cover medical expenses. The insurance company can then sue you under this clause to recover their costs. A waiver or liability release won’t help here. I only have heard about this, but it is worth checking in to. This whole insurance thing is keeping me from building for others…
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I spoke to Amanda today and she said that the frames are covered through the Statute of Repose for your particular jurisdiction if you had Products-Completed Operations Coverage at the time the goods were sold. Should one discontinue operations and coverage those goods previously sold would still be covered.
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I was with Intact before and Co-operators now. I have a lot of other, different business activities and co-operators was a lot more flexible and a bit cheaper but both have been able to insure me for frames and teaching.
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Good to know. I’m 10 years from needing to get out but good to know.
I also learned through discussions related to purchasing an existing business that it’s most common to purchase the assets, name, IP and goodwill etc but let the legal entity die. This avoids disgruntled employees, product failures etc being transfered to the new owner. In other words, Purchaser XYZ purchases ABC Mfg’s assets, IP, Name and goodwill. Seller lets ABC Mfg Inc die. Purchaser then sets up XYZ Industries DBA “ABC Mfr” (notice slight difference in name). Any liability dies with ABC Mfg Inc closure.
I have also heard that for many small 1-person businesses a decent lawyer can prove that the LLC is 1 and the same as the individual so it’s smart to maintain as much separation as possible. that includes separate accounting and tax returns, business credit card/bank accounts, etc. etc. It can’t be set up as an LLC while being operated like a glorified hobby and still maintain the protection of the LLC.
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