Insurance Product Liability

Insurance Product Liability: Liability insurance for china products for major buyers:

  1. This could apply to any products (importations)
  2. Below import was $154,000 per each Bill of Lading (tires / wheels)
  3. If you are purchasing less than $100,000, supplier may not include you with " certificate of liability insurance "
  4. Consumer product safety commission, product certification or product qualification, all permit(s) all fees, us laws, international laws. (basic import/export) and etc is your responsibility = case file: federal court / U.S. attorney’s.


It makes sense for you to obtain product liability insurance if you are a retailer or wholesaler buying products from China in order to shield your business from liability in the event that your product causes someone harm or is recalled. Unfortunately, because of the increased attention given to product recalls and injuries caused by Chinese items, obtaining this kind of insurance is become harder and more expensive.


The simplest approach for an importer or retailer to obtain this insurance is to purchase it on their own behalf. However, the issue with doing so is that the Assuming they are the first and most likely only line of defense in a product liability lawsuit and that there will be no recovery from the Chinese, insurance underwriters will proceed under this scenario manufacturer. Underwriters will price their insurance in accordance with the assumption that they will be left holding the bag for the total damage caused by a defective product. They won't know anything about the operations or quality control of the Chinese firm and will presume that both are poor.


By insisting that their Chinese suppliers indemnify them, importers and retailers can reduce the cost of their product liability insurance (and frequently enhance their protection as well) by asking those suppliers to obtain their own product liability insurance and designating the importer/retailer as an additional insured, they can protect themselves from costs associated with defective items on these regulations. The importer or retailer will be eligible to file a claim if they are listed as an additional insured on the insurance policy of the Chinese manufacturer complaints about the policy.


The insurance provider typically issues a certificate of insurance to the importer or retailer showing the Chinese manufacturer's insurance coverage when Chinese manufacturers secure it. The policy covers s's products. It is imperative that the coverage be accurate because the laws and conditions in China and the United States are different be carefully examined to make sure that it complies with what is required for meaningful protection in the United States under these regulations. I bring up the US here for a number of reasons a number of factors, the most significant of which being that the danger of product liability is by far the highest in the United States.


My business has examined several insurance contracts with Chinese origins to assess the degree of security they provide for our American clients and that protection has typically been woefully inadequate. For instance, many product liability insurance policies issued in China only cover those claims brought three years or less after the policy's start date. Since most states give an injured party two years to file a claim, this type of coverage is insufficient for a United States importer or merchant a claim up to six years following their injury. In other words, if you procure a product from China and it causes harm to a person 10 years after you sold it, you are entitled to compensation.

You could still be sued and suffer a significant loss. Many states allow minors to postpone filing personal injury lawsuits until they are adults. The easiest approach for American merchants and importers to guard against product liability risk is typically to have their Chinese suppliers secure a product with a U.S. base liability insurance. If the three conditions listed below are satisfied, these policies can often be secured. The Chinese producer is first-rate and has the necessary ISO certifications certifications. Second, the Chinese producer can demonstrate that it consistently turns out high-quality goods. Third, the Chinese producer needs to demonstrate a five-year warranty positive loss record Making American underwriters feel at ease while drafting a coverage for a Chinese firm is the aim.


Surprisingly, carrying the U.S. policy for the Chinese producer typically costs less than any other option for the Chinese manufacturer/U.S. importer/retailer both parties will often benefit more from the approach and the coverage. Thus, doing things in this manner benefits both parties.

Certificate of Liability Insurance Sample

Sample of " Certificate of Liability Insurance " : (page 1-4) / Importer invoice was $154,000 each Bill-of-Lading (Tires / Wheels) (this is NOT relate to cargo insurance)
Sample of " Certificate of Liability Insurance " : (page 2-4) / Importer invoice was $154,000 each Bill-of-Lading (Tires / Wheels) (this is NOT relate to cargo insurance)
Sample of " Certificate of Liability Insurance " : (page 3-4) / Importer invoice was $154,000 each Bill-of-Lading (Tires / Wheels) (this is NOT relate to cargo insurance)
Sample of " Certificate of Liability Insurance " : (page 4-4) / Importer invoice was $154,000 each Bill-of-Lading (Tires / Wheels) (this is NOT relate to cargo insurance)