The spectrum of manufactured products is very wide, a simple component part for a larger product, a complete machine or perhaps a consumer product right through to cosmetics, food products and medical devices, the list is endless.
Imagine getting prosecuted by one of your customers because something that you have manufactured has failed and inured someone? Having adequate product insurance cover in place will protect your business against the huge legal fees and compensation due to loss damage or injury caused by one of your products.
When you manufacture products for the North American market their legal system works in a different way to how you would expect it to work in the UK. Your contracts and agreements will be different to what you may have been used to so its essential that the insurance cover you are buying provides the correct protections. Whatever product you manufacture, from the smallest and lowest of risk even things at this level we know go wrong , in the UK you have to have been negligent in law. In the USA though this is not necessarily the case, whilst negligence may play a part, just having sold the product could mean you are responsible.
What Liability cover do I need when selling to the USA
At the most basic level most business will know what Public Liability Insurance is and what it does, it covers your business against anything that happens to a member of the public where it’s your fault.
There is always that worry someone may have an accident at your premises or you may cause a loss whilst meeting with a customer, knocking over that priceless Ming vase over in the reception of a large customer or leaving luggage in place for someone to fall over, this is why you have the cover.
USA Product Liability Insurance is an essential cover when you are exporting your goods to North America. This type of insurance is there to protect you against not only the compensatory costs but the legal costs too that you may have to pay should the product that you have manufactured cause any type of loss to the user.
In the USA though and the way their laws work you could be held responsible just for supplying the product. It can be worrying that even supplying a product can cause you so many problems.
What’s worse it could be the advertising, the packaging the instructions that are wrong and that is before you even get to the product itself. This is where its essential that you have the correct type of USA Product Liability Insurance in place.
What insurance is needed to cover the manufactured product itself?
From arriving at your production area as raw material, in its processing stage and then on their journey to their final destination at the customers location your goods need to be protected.
If something happens to your products through their production journey, then insurance is going to save the day. There is always the worry that your stock could be lost through fire, theft or even storm damage to your business premises.
Having a fully comprehensive insurance package including your machinery, the business fixtures and fittings to cover such losses is essential, Business Interruption Insurance can be put in place to ensure that you are not put out of business whilst the premises and the business is rebuilt.
Manufacturers Insurance from USA Protect
What is Business Interruption Insurance?
Arriving at your business premises to find it on fire is going to be pretty devastating, what about the machinery, what about the employees, all the orders the computers and product drawings, all potentially destroyed.
Having the comfort of knowing that whilst the business may have been damaged there is Business Interruption Insurance cover, sometimes known as consequential loss insurance, in place. It’s there to make sure that the business continues to survive even when you are not working.
After a loss it could be weeks, months or even years before the business is back to the position it was, buying Business Interruption insurance ensures the longevity of the business.
Covering your product to its destination
Once manufactured your product isn’t quite out of the woods in terms of its exposure to a loss, it has got a long journey ahead of it. Its journey may consist of all types of transport, local pickup by a courier, then into a container, more road journeys to the port and then possibly by sea.
Obtaining good quality Marine Cargo Insurance will protect your goods and products to their final destination against almost everything nature or humans can throw at them.
Types of business insurance for a manufacturing business
To cope with all the risks associated with a manufacturing business, a wide spectrum of insurance cover is available, and when you export to the USA, wider cover such as USA Product Liability Insurance needs to be in place.