New online business - INSURANCE Needed?

I am starting up a new business, specializing in professional
lighting, sound, and video equipment. The products I sell include high
power lighting fixtures.

Does anyone know if I would need insurance? How necessary is
insurance? For example, if a club burns down and many of their patrons
are killed because a light they bought from me started the fire; am I
likely to face legal action?

Another example; an individual buys a light fixture and uses it in
their residential home. Due to the high power load and excessive
amount of heat from the fixture, a fire starts. Am I in any way
responsible? What kind of reparations do I face?

I know the manufacturer is typically responsible for something like
that, as well as the club and maybe the city where the club is located
for inspection regulations...

Do other businesses like mine get insured? Is there a legal document I
can place on my site that releases me of any responsibility? Is there
a legal document I can buy to place on my site?

I am planning on writing up a terms of sale agreement that includes
things like the buyer is using the products in a commercial facility,
which was inspected etc...

Is there any protection I can get from the government? (I am based in
Pennsylvania)

I know I may sound paranoid, but in America, anything is possible and
every day we see that business in general is risky.

Any replies are greatly appreciated.
Eric E.
http://www.lumnitech.com

On Fri, 16 Apr 2004 16:53:35 -0500, erockeisele RemoveThis @hotmail.com (Eric E.) wrote:

 >Another example; an individual buys a light fixture and uses it in
 >their residential home. Due to the high power load and excessive
 >amount of heat from the fixture, a fire starts. Am I in any way
 >responsible? What kind of reparations do I face?

Howdy,

There's a huge amount to learn starting your own business. Most people
should not try to do it.

It's up to a court of law to establish negligent responsibility. No matter
what the business, you need an umbrella policy to cover any contingencies
including attorney and court costs.

 >Do other businesses like mine get insured? Is there a legal document I
 >can place on my site that releases me of any responsibility? Is there
 >a legal document I can buy to place on my site?

You cannot disclaim responsibility for something that is obviously
hazardous. You can try, but it won't stop someone that's determined from
testing it in court.

 >I am planning on writing up a terms of sale agreement that includes
 >things like the buyer is using the products in a commercial facility,
 >which was inspected etc...

Run it by a good attorney. It would probably be a good idea to hire an
attorney to go through your business plan and provide some general
background advice. A few hundred dollars now could save you thousands in
the future.

 >Is there any protection I can get from the government? (I am based in
 >Pennsylvania)

The government will not intercede in civil matters.

 >I know I may sound paranoid, but in America, anything is possible and
 >every day we see that business in general is risky.

This is true in every country. In some countries, you'd be wanting to hire
an armed guard to stand outside your front door.

Thanks, Chris <a style='text-decoration: underline;' href="http://www.bizynet.com" target="_blank">http://www.bizynet.com</a>
BIZynet Coordinator cgunn RemoveThis @bizynet.com
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