Preventing lawsuits when owning your own business?

Question

SERIOUS ANSWERS ONLY. Please be detailed, too.
I am thinking of opening a handmade soap business, and I know I should get insurance to cover against frivolous lawsuits. I also plan to make lists of ingredients available and encourage buyers to read it before purchasing and also having a 100% money back guarantee. Also if I write a disclaimer stating that not responsible for medical bills or pain and suffering from using soaps and if I list my ingredients will I still be sued and lose? Or, will I win based on this? Will I be covered if the person can't read or didn't take the time to read it? Stupidity on their part right? I have heard from watching People's Court (I think?) that if a business states that they are not responsible; for example, for damage to a person's car (it was a car wash) they will be able to win the lawsuit. At least, that's what happened when I watched and what the judge said.
Being sued is my biggest fear and turn-off about owning a business. Thanks!

I do want customers to be repeat, and I want them to trust me. I also want to protect myself from greedy money-grubbers.

Other soap-makers, and judges and lawyers I would love your insight. Thanks!

Also, I want to donate a portion of my profits to a non-profit agency that helps rehab animals. Will they get in trouble?

Thanks again!

Let's say it is very safe...BUT they are allergic to one of the ingredients and they read the ingredients and bought it to sue me, or didn't read it and found out later.

THERE WOULD BE NO HARMFUL INGREDIENTS!!!!! Just read on a soapmaking website about the potential of being sued over a rash. Wow! I got those when I was a baby! Should I sue Luvs? I am just concerned about allergies.

Answer 1

I know people (unfortunately) who bully and harrass small businesses by threatening to sue everytime they are unhappy with something. The businesses get scared and give in because they don't know any better.
I have worked a lot with lawyers in the past years, and the days of getting money for harrassment suits is long gone. Any small business situation can easily be dealt with by small claims court anyway (guess what, no lawyers!) and those judges don't take kindly to harrassment suits either.
Just get regular insurance for your business, and let them take care of any situations like this.

Answer 2

After reading the details I wonder what you are putting in your soap and how you could possibly expect to sell any with a printed disclaimer stating not responsible for medical bills or pain and suffering from using the soap. I have never seen a soap with such a disclaimer and certainly wouldn't buy one that had such a disclaimer. Makes it sound like there are possible harmful ingredients.

Answer 3

The number one piece of advice I can give you is to consult with an attorney. If you're planning a business, their advice is indispensable. They can help you properly word any documents, help you cover the legalities of business ownership in your state, advise you as to whether to be a sole proprietorship or to incorporate, etc.

Being sued will be possible no matter what precautions you take. There will always be those people who file frivolously, hoping to get anything in a settlement. But owning a business can be very rewarding. Best of Luck.

Answer 4

You cannot protect yourself from lawsuits by your customers, no matter what you say or write. In products liability cases, the Uniform Commercial Code applies. The product has to be safe for the general public to use.
You should buy commercial general liability insurance and products liability insurance, if you can afford it.

Answer 5

provide them 0.5 of your thought or basically the identify of your thought. I accept as true with the different submission. by the monetary company doing issues this way they may well be staring at it this way. in case you submit an thought to them and that they grant you with any style of repayment they have delivered your thought. you haven't any rights to the different claims if the belief takes to the air. you're extra constructive off getting a patent and going to inventor expos and characteristic businesses bit on your invention. this way you get to call the invention, set your guy or woman value for it and do company with what ever company you like. wish this helps.

Answer 6

1) Hold harmless n indemnity clause
2) Business liability insurance

Product Liability Risk Management:
http://mb.thehartford.com/reduce_risk/risk_tips_product.asp