Quinton is excited to start a new company that manufactures outside yard ornaments. If you are advising Quinton about product liability insurance, which of the following is true?
A) Start-up companies like Quinton's often have difficulty obtaining product liability insurance.
B) Quinton's company's annual sales is not relevant in obtaining product liability insurance.
C) Quinton's product is not relevant in obtaining product liability insurance.
D) Quinton's insurance premiums for his start-up company will be relatively low.
E) Start-up companies like Quinton's can always meet the insurance company's requirements for product liability insurance.

Question

Quizplus · Accepted Answer

Start-up companies often face challenges in obtaining product liability insurance due to their lack of history and financial stability, which insurers use to assess risk.

Quinton Is Excited to Start a New Company That Manufactures