What is USA Product Liability Insurance?
If your UK based business involves selling products to customers in the USA or Canada, your standard product liability insurance is likely not to cover you if your product is deemed to have caused damage or injury. The resulting lawsuit could be extremely costly, and this is where USA Product Liability Insurance is essential.
What if I already have Product Liability Insurance?
This is fine if you’re only selling to UK and other worldwide markets, however as soon as you deal with US customers you’ll need to have USA insurance as well as your usual product liability insurance.
Does my business need USA Product Liability Insurance?
Business culture in the USA is very much about ‘litigation now, ask questions later’. If you export goods to the USA or Canada, it may be that you can incorporate cover within your manufacturers insurance policy. However, many insurers will insist of a stand alone cover where your turnover in US and Canadian sales exceed a certain percentage of your overall turnover. Even when a product has been designed to the highest standards using the best quality materials, accidents can still happen. Product liability insurance is designed to cover the cost of compensating someone who claims to have been injured by a product that your business designed, manufactured or sold. If you make or supply products to the general public it’s your responsibility to make sure they’re safe. You also must comply with health and safety and product safety laws – otherwise you may face legal action.
Defending a claim against you, or being instructed to pay out compensation, can be hugely expensive. Product liability insurance protects you/your company against the legal and compensation costs arising from death, loss or property damage as the direct result of someone using your product so you won’t have to find the money yourself.
What’s different about America and Canada?
Product liability insurance claims, including solicitor’s fees and compensation, can run into many thousands of pounds. But it’s worth knowing that in the USA, and in Canada, the total cost of liability insurance claims are often many times higher than cases brought against companies in the United Kingdom. We can provide a policy that offers protection where upto 100% of your total turnover is in export sales to North America.