Insurance Considerations for UK Businesses Trading with North America
The allure of the North American market is undeniable. With millions of potential customers and a strong appetite for international goods, expanding into the US or Canada can be a very lucrative move. However, navigating the legal landscape across the pond requires careful consideration, particularly when it comes to Product Liability.
Why is specialised US Product Liability insurance important?
While UK businesses will likely already have Product Liability insurance in place, standard UK policies often fall short when it comes to claims originating in the US or Canada. This is due to a number of factors, including:
- A more litigious culture. Unlike the UK, the US has a more litigious culture where consumers are more likely to pursue legal action should a product or service cause injury or damage.
- Higher damage awards: Courts in the US often award higher damages in liability cases compared to the UK, including substantial compensation for pain and suffering and punitive damages.
- Different legal standards: The US and Canada operate under different legal frameworks than the UK, with varying standards of proof and liability rules.
- The “long-arm” of US law: Even if your business is based solely in the UK, you can still be subject to US jurisdiction if your products cause harm in America.
Who needs specialised US Product Liability insurance?
Specialised US Product Liability insurance is essential for businesses of all shapes, sizes, and industries. Whether you’re an online seller shipping directly to consumers, a manufacturer exporting to international markets, or a distributor with a North American presence, this coverage offers crucial protection,
In short, if your business operates in the US market – or plans to in the future – having the right insurance can help safeguard your operations and minimise the risks associated with Product Liability.
What type of coverage do you need?
The necessary coverage depends on the specifics of your business and products, but the most common types of coverage include:
- Exporters Insurance: Provides cover for goods in transit and potential liability once they reach the market.
- US Product Liability: Specifically designed to address the unique legal challenges of the US market.
- Manufacturers Insurance: Covers liability arising from defects in design, manufacturing, or warnings.
- Product Liability – Vendors Extension: Extends coverage to businesses that sell or distribute products manufactured by others.
- Overseas Employees: Protects your employees while working in the US or Canada.
- Marine Cargo: Covers goods against loss or damage during international shipping.
Finding the right insurance
Protect your business from the unique risks of trading in North America with expert guidance from L Wood Insurance Brokers. Our team has extensive experience in dealing with the complexities of international trade. We can assess your specific risks, advise on the appropriate level of cover, and ensure your business is properly protected from the financial repercussions of a Product Liability lawsuit in the US or Canada.
Secure comprehensive US Product Liability insurance and trade with confidence – speak to us today on 01274 515747.
Source: https://konsileo.com/online-retailer-insurance/usa-product-liability-insurance/