Legal Question in Product Liability in Virginia

Consignors

If someone is conducting a consignment shop (twice a year out of a church), do they need completed products and operations liability coverage? This person deals with children's items so if a child were to choke on a toy part or there were losses due to flammable sleepwear or damages from a faulty crib, etc. WHO would be the responsible party, the person who brings their items to be sold on consignment OR the person who actually conducts the sale? The church has just requested that the sellers carry General Liability coverage (though they have been doing this for 8 years), but the question came up about the need for products and completed operations coverage. Thank you.


Asked on 4/02/04, 9:36 am

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: Consignors

While VA law does not provide for strict products liability in tort, and thus provides some protection, there is a risk to the seller (store) here because obviously the consignor has no coverage. It's a cost/benefit question that can't be just answered yes or no: the insurance is expensive, but there is a potential for claims of that nature.

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Answered on 4/02/04, 10:37 am


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