Liability for independent consultants of direct sales companies

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Liability for independent consultants of direct sales companies

Anonymous Feb 26, 2015 6 views 1 answers

I have recently become an independent consultant for a tea company. I am wondering if I have any personal liability. Below are some examples of my concerns: 1. I participate in vendor shows and have hot tea for samples. If they burn their mouth or have an allergic reaction, am I liable? 2. I sell pre-packaged bags of loose leaf tea and accessories. If there is something wrong with the tea itself that I sold in an unopened bag, am I liable for anything? What if they purchase a glass tea mug and while they use it, it breaks and they get cut? Do I have any liability? 3. If I do have any liability and someone tries to sue me, can they also try to sue my husband? 4. Should I set up an LLC or carry some sort of insurance? Thank you for your help!

Robert Schrage 639926.Html · Accepted Answer · 2026-06-15T13:38:46+00:00

Specific answers to paragraphs 1, 2 and 3 would take some time, depend on the facts and would also depend on what statute and case law provides for dealing with problems like that in the jurisdiction where the case arises. The answer I would give you to Paragraph 4 is a definite Yes. Generally speaking one of the principal purposes for using an LLC to conduct business is to limit exposure of the owners to the assets the LLC owns. The personal assets of the owners of the LLC's are exempt from creditor claims under most situations. Also in any business it is very important to have liability insurance coverage. You should talk with a good insurance agent where your business is located and ask about liability coverage and excess or umbrella coverage.

Liability for independent consultants of direct sales companies

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