Does your marina sell parts or equipment for watercraft? An increasing problem in the world of replacement parts for many types of equipment is the issue of counterfeiting. With so much manufacturing taking place outside the U.Sit is more and more common for those parts to find their way into stores here.
Your supplier may not be aware of the counterfeit nature of the parts. In fact, it probably takes an expert to distinguish the difference as OEM-style stamps, serial numbers, and branding may have been used by the counterfeit manufacturer.
Standard Commercial General Liability policies exclude coverage for allegations of patent infringement. Although there may be coverage under the “Advertising Injury” coverage clauses for “piracy” it is more likely that coverage may be denied. The legitimate owner to a patented product may name all the parties involved in the transactions that led to the production or sale of a counterfeit. The legal expenses to defend your business, even if you are later removed from the suit, can add up quickly and without insurance coverage it can be more than just an inconvenience.
Discuss the steps you can take to protect your marina business with one of the risk management professionals at The Flanders Group – contact us today.