General & Product Liability Insurance
We are 3rd party suppliers of Mining & Mineral Processing Equipment based in Canada. After supply of a machinery, how many years should we continue to have General & Product Liability Insurance. Is it only until the warranty of the product or should it be as long as the company exists. What happens if I finally shut down my business.
We don’t typically research the insurance laws of Canada, but in the United States it’s a good idea to keep product liability and general liability insurance for as long as you’re in business. Your policy will stipulate how long the product is covered for once you’ve supplied it to a customer, and it generally depends on the expected life of that product, but many are covered for as long as you have the policy in place.
If you shut down the business then there won’t be any insurance coverage or money for a potential claim to come after. You typically don’t have to worry about claims that might come after your business has shut down, unless you’ve done something that merits personal liability (which isn’t normal when you have a legal business entity).