A Liability Question

[George Snyder]

I have been thinking alot lately about this topic. I mentioned it to a guy that aproached me about purchasing a Cobra. When i mentioned it to him, his response was " I never really thought about that".
Here is the situation in question.
John Doe #1 purchases a kit from a manufacturer. His assemblies the kit himself. He uses top quallity parts during assembly and does an excellent job. When he completes the kit, he decides that he would like to have a Cobra from a different manufacturer, so he sells the first one.
John Doe #2 buys the car. He is thrilled to finally realize a long time dream. After a few months of driving a terrible thing happens. A bolt in the upper control arm comes loose, which causes John # 2 to have a bad accident. John #2 is seriously hurt and decides to file a suit against John #1.

In this case a Jury finds that John #1 was somehow negligent and awards John #2 a settlement.

Since john #1 doesn't normally engage in the assembly of Cobras, he never thought about purchasing Product Liability Insurance to protect his personel assets even it he could have.
It seems to me that John #1 could stand to loose everything that he owns to satisfy this judgement.

I owned a Small Business up until last year and I was always deeply concerned with the liability issues. I daily had to consider the possability of a serious water or fire damage claim against my company. I always hoped that I was carring enough insurance.
Has anyone else ever given any thought about this subject or am I just being paranoid as usual?