Top 10 Tips for UK exporters and Amazon sellers to consider when arranging insurance to cover products heading to the USA
We are passionate about providing specialist solutions to match our clients needs and make a specific effort to ensure that our clients understand the various insurance products that are available in their sector, but most importantly what the implications might be in the event of a claim.
Here are out Top 10 Tips for businesses to consider before purchasing insurance to cover exporting from the UK to the USA:
(1) Make sure you understand your exposures when exporting to the USA.
(2) Be mindful of the litigious environment in the US and make sure that you have the right insurance cover in place in case of possible lawsuits.
(3) It’s important to remember that the US is made up of 50 states but 51 insurance jurisdictions, each with different rules, regulations and exposures.
(4) Be aware of the differences in the types of cover available in the USA.
(5) Do not assume that a UK policy can just be extended to cover the US. Insurance to cover your liabilities in the USA must be flexible enough to be scalable with your business requirements, buying insurance cover today knowing that sales to the USA or Canada is going to increase soon could cause a problem.
(6) Make sure that your limits are high enough. As an example, think of the substantial amount of damages that might be awarded against you in something like a product liability case.
(7) The legal system in the USA differs to ours in the UK and usually relies on what is known as ‘Strict Liability’. This means that even if you have only supplied the product you could be deemed liable for any losses that might occur from it.
(8) Remember that your duties to customers are often more onerous than in the UK; try to prevent any possible accusations of ‘failure to warn’ relating to your products.
(9) Legal action can come from individuals, businesses or class actions where lots of people take action against you or your company because they have suffered from using your product.
(10) Finally, ensure that you speak with a specialist broker who understand the US export market, giving you peace of mind that you are correctly covered and that any claims will be dealt with by knowledgeable people who understand the environment.
Now is a good time to review your insurance arrangements.
As COVID-19 continues to disrupt supply chains and demand, it is important to ensure you have the correct insurance arrangements in place. We have had great success in helping exporters from the UK to the USA obtain the correct cover for their needs, providing peace of mind should the worst happen.
With your best interests at heart we would be delighted to carry out a full insurance market review of the covers available from financially stable A-rated insurers and recommend to you a range of appropriate covers that are specifically tailored to the needs of your business.
Don’t forget when making decisions about insurance it’s essential you check whether the cover is appropriate to your needs from a specialist insurance broker such as USA Protect, a trading style of Real Insurance . We’re not a call centre and don’t rely on what a computer is telling us. Whilst we use a high level of technology within our business we haven’t forgotten that bespoke insurance needs knowledge and experience.
Experts in arranging insurance for UK companies selling to the USA and Canada.
We understand the special requirements to ensure you are best protected, providing you and your business with peace of mind. Whilst there are many challenges around arranging USA export cover, they are certainly not impossible. USA Protect can provide an insurance policy that gives you with peace of mind and the correct product liability protection when exporting to America.
Download our Insurance Buyers Guide for Exporting to the USA.
To ensure your business is best protected with the most appropriate cover for product liability when exporting to North America or Canada please contact one of the USA Protect specialists today on 01623 889530.