Legal Question in Insurance Law in New York

Re: Liability: Production of Airbags

There are always dangers in putting products, especially consumer products, into the stream of commerce. The most logical way to address these risks is through insurance specifically tailored to your business. This would include a commercial general liability policy with completed operations/product liability.

It's also a little odd that you refer to yourself as an individual. Anyone involved in selling products to or for the use of the public should use a corporation or other limited liability entity to reduce the risk of personal exposure.

My firm advises entrepreneurs regarding these and similar risks. Feel free to call me to schedule a meeting if you are inclined to do this the right way.

This post is not legal advice and does not create an attorney-client relationship. It is a comment on the legal question posed by the poster and should not be relied upon unless and until an attorney-client relationship is entered into. Doing so would require signing an engagement letter and depositing a retainer to secure payment of legal fees.

Re: Liability: Production of Airbags

In addition to insurance policies to protect your company, consider entering into indemnification/contribution contracts with the company that wants to hire your company.

I advise you to retain an attorney to protect yourself and your company. Feel free to call me at 516-256-7737 to discuss possible terms of such contracts.

Re: Liability: Production of Airbags

In New York a Plaintiff can sue any component part manufacturer if they are injured by a product. The only way to truly protect your company is to make sure that it is well insured for this type of commercial product. In addition, you can regulate the liability as between your company and the manufacturer of the air bag as a whole, according to the terms of the contract, and that agreement would be enforcable in court between the two companies, but not against a plaintiff.

As to your own personal liability, if you work for a corporation, you can't be held liable for judgments against the corporation. Director and Officer liability only occurs in very limited circumstances that are not usually involved in product liability.