Legal Question in Business Law in California

I�m selling solar panels for a company as an independent contractor. Am I liable for anything if something goes wrong with the installation, the panels, or if the company goes bankrupt? And, in general, how can I protect myself from liabilities and lawsuits if I am working for a company as an independent contractor as a salesman only and something goes wrong with the installation of the product. (like property damage, injuries, shoddy workmanship, or the company not fulfilling the contract)?


Asked on 4/24/14, 1:56 pm

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

There is a moderate degree of risk; first, that you may be named as a defendant or co-defendant in a lawsuit and be obliged to put up a defense, and second, that you might be found liable or partially liable as a consequence of such suit. So, even if you win the suit, defending is a hassle and can be expensive. I'd say factors that would increase your risk include (a) if you take title to the goods from the company and act as a reseller rather than just acting as a salesperson for them, and (b) if you are much more "visible" to the ultimate customer than is the company you are representing. Also, don't get involved in the installation process unless you have a contractor's license! The most important thing, however, is to carry the proper insurance, and I highly recommend that you develop a working relationship with an insurance representative who sells and has experience with small-business policies.

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Answered on 4/24/14, 3:44 pm


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