When you are a product manufacturer, a distributor or you sell goods anywhere in the world it’s advantageous that you have the correct Product Liability Insurance in place, particularly if you are sending your goods to the USA or Canada.
Lawsuits and actions are common place in the USA, they can be far more costly too than what might be seen in a UK court, so having the correct type and amount of liability insurance cover in place will provide financial protection your business.
Not all liability cover is the same, usually in the UK there has to be negligence, in the USA or Canada its wider than this, just supplying the product can put you at risk, your customers may want to be included as a dual insured or vendors extension applied.
What does Product Liability insurance cover
US Product Liability or Product Liability Insurance in general will protect you against any actions or lawsuits that you may receive because your product has failed in some way and caused damage or injury to someone or their property.
If you are the manufacturer of the complete product then usually the buck stops with you however, if you have used component parts that are made by someone else then you can still be involved in the claim and whilst you may not be responsible for any of the loss the costs just to defend you in the process can be enormous particularly in the USA where shoot first and ask questions later is the order of the day.
Why do I need US product liability insurance
The Legal systems in the USA differs to ours in the UK. Besides being much more costly legal action can come from anywhere, whether it be individuals, businesses or class actions where lots of people take action against you or your company because they have suffered using your product.
When you supply a product, surprisingly it’s not just the item itself that may cause a problem. In the USA or Canada there is everything from its designs, its marketing , misrepresentation or perhaps just because of a particular state statute, different states have different laws.
How a product is used and how the instruction manual is put together can be a problem too, if you are supplying a product it must have the correct instructions for use. The instruction manual should be seen as an extension of the product you are selling and must be accurate. If you have purchased the product in a none English-speaking country and translated with an online translation tool, it might not translate properly and you could give the wrong instructions, professional translations are always important.
The legal system in the USA usually relies on what is know as Strict Liability, in essence this means that even if you have only supplied the product you could be deemed liable for any losses that might occur from it, in the UK and most legal systems throughout the world, you have to be found negligent.
When buying US Product Liability cover its always wise to ensure that the cover you are provided with meets your requirements, having a policy that states cover will only operate if a claim is bought in the UK isn’t going to be much help to you if the case is brought in a North American court, this is the difference between UK and US Jurisdiction.
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 you a problem. Its always wise to ensure that you are buying insurance that is scalable as some insurers can restrict the percentage sometimes as low as 15%.
Why use us for your business insurance as an exporter?
We work with specialist markets providing the breadth of cover needed when working with the USA.
Fast access to the leading insurers.
Up to 100% turnover to the USA
Territorial limits including the USA and Canada
US Jurisdiction where required – as standard with most of our insurer partners
Dual Insured (Ideal for Amazon Pro Sellers)
What our Customers are saying…
I’ve used Real Insurance Group for our online business for the last few years. Mike has been able to secure us a policy that meets our needs for worldwide marketplaces at competitive rates. Would thoroughly recommend this company.