The Importance of Product Liability Insurance in International Trade
As the amount and importance of international trade continues to increase, product liability insurance requirements are becoming more important for product manufacturers, distributors, and suppliers, and are essential, especially when products are exported to Europe and the United States.
Overseas markets face product liability risks
According to the current international trade market, China is still the world’s largest producer and exporter of industrial products, and the trade surplus of goods accounts for more than 5% of total imports and exports. And because China will maintain the status quo of the world’s largest labor market, we believe that the trade surplus will continue to expand.
Due to the different legal systems and universal awareness of rights protection in the countries of the importing countries, the pressure on claims from domestic suppliers when exporting to the US and Canada is increasing. As a domestic company that already has a large number of European and American orders or expect to open the European and American markets, it is necessary to face the following problems:
- Safety of production or sale of products;
- Endless lawsuits and huge compensation for product liability;
- Since the company does not have an effective product recall system, it cannot implement an effective recall of overseas defective products;
- International buyers have strict insurance requirements.
For those companies that work hard in overseas markets, it is especially necessary to recognize and avoid the following situations:
- In the event of a product liability incident, you may face huge consumer claims and endless legal proceedings;
- If the court makes an unfavorable high judgment, it will affect the reputation of the brand or cause losses to the operation of the company;
- A claim reported by News Coal has the potential to incur a chain reaction and class action, resulting in a substantial increase in the amount of compensation.
Our risk solution
Exclusive Product liability insurance program
“Product Liability Insurance” mainly compensates the claimant for personal injury or property damage caused by defects in the insured product, and its producer or seller shall bear legal liability for compensation according to law.
- Design defect
- Manufacturing defect
- Not fully explained or warned
- Accident investigation, lawyer defense and related legal costs
- Compensation costs up to your insurance limit
- For manufacturers, we insure most of your competitors in China, Thailand, India, etc. If you want to be competitive on the insurance, contact us today!
- For importers and wholesalers, we insure most manufacturers worldwide. We know your suppliers and we understand the risks you’re supposed to take. If you don’t want to overpay, contact us today!
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