Lets Discuss Liability when Selling Customized Cars?

I had a Harley I was selling and a young guy came to look at it. He wanted a test drive and I told him could ride after the deal was done. If he didn't like it we could undo the deal. He gave me cash, we signed a bill of sale and the pink over to him and then went for a ride. He was on the one I was selling and I was on my new one.

He started driving it like it was a sport bike. Sparks flying off the pegs. What a dumb F. At a stop light I told him it's a Harley. Take it easy. Slowly and majestically.

He yelled back "great bike, I'm outa here" and pinned it when the light turned green.

I'm quite sure he's dead by now. It's been many years now but I always worried I'd get a call that I sold a "dangerous item" to someone who "obviously" didn't know how to ride it.

Can anyone in the insurance industry comment on how to possibly insure yourself against this type of claim/suit? 

(I'm trying to keep this in the big picture, which is you can be sued for things other than modified cars, and in general I thought the best defense was the correct insurance policies, like a homeowners policy protects you if someone slips on your porch and sues.)

When I sell anything that is at all modified, even if its aftermarket parts not parts I fabbed, I have an add on sheet that I go into the deal with two copies of. One for the buyer, one for me. It basically says that the vehicle is as-is with no promises made, his safety is up to him and if he is in doubt I encourage him to engage his own mechanic to evaluate it or somethign to that effect. He signs the copy I keep and throw in the files with all my car documents. 

Duke said:

z31maniac said:

docwyte said:

At that point I'd sell the car as a "parts car" in "as is" condition only and have that on the bill of sale.  That way if they use it on the road, you're totally insulated...

Not sure I agree with that. People have successfully sued X business for Y happening after signing a waiver saying Y may happen and X business won't be responsible. 

Yes, but we're talking about individual private-party sales here; Person A is selling a specific vehicle to Person B, not offering themselves as a modification, fabrication, repair, or restoration service.

 

My point is that disclaimers don't necessarily protect you from any and all problems. 

Similar to how saying "X person allegedly did this" doesn't necessarily protect you from a libel/slander lawsuit. 

Robbie (Forum Supporter) said:

Can anyone in the insurance industry comment on how to possibly insure yourself against this type of claim/suit? 

(I'm trying to keep this in the big picture, which is you can be sued for things other than modified cars, and in general I thought the best defense was the correct insurance policies, like a homeowners policy protects you if someone slips on your porch and sues.)

The only thing I can think of is an umbrella liability policy.

z31maniac said:

Robbie (Forum Supporter) said:

Can anyone in the insurance industry comment on how to possibly insure yourself against this type of claim/suit? 

(I'm trying to keep this in the big picture, which is you can be sued for things other than modified cars, and in general I thought the best defense was the correct insurance policies, like a homeowners policy protects you if someone slips on your porch and sues.)

The only thing I can think of is an umbrella liability policy.

Sometimes the more insurance you have the more of a target you are.

In reply to 67LS1 :

I get the "I'm not a big enough target" argument. 

It may have even been a good argument when I was 18 and had two nickels to my name. Problem is, I don't WANT it to be my defense when I'm getting ready to retire. Ideally, at some point I'll have some assets worth something, and that's where the problem lies.

If you choose to be net worth zero your whole life, then yeah, you probably don't have to worry much about liability. 

When you do have something to defend, how do you defend it? I think that is the question of the thread.