Product liability insurance for product made in china

[pales]

I'm starting a new menstrual cup business selling menstrual cups that I sourced from china but the insurers want me to prove I have the right to recourse. Does anyone have experience of this and can recommend an insurance company that is experienced in insuring products from china that may seem slightly higher risk to insurers?

 

[Frank the Insurance guy]

Hi @pales .

prove I have the right to recourse

Are they asking you to PROVE you have rights of recourse, or to confirm you have rights of recourse.

I am no lawyer, but understand rights of recourse exist unless they are removed within the contract.

What does the contract with the supplier say? There should be no waiver of your rights to pursue the supplier for any issues with their products. There should also be no requirement for you to indemnity the supplier.

Importance of rights of recourse - you are relying on your supplier for a faultless product. If something goes wrong (in particular if the product was to cause injury or illness), you will be legally liable to your customer as you sold them the product. You will have to pay any compensation etc (Paid by your insurer, if you have insurance) - however you (or your insurer in your name) will then use your rights of recourse to sue your supplier for the cost of the compensation/damages. If you have waived your rights of recourse you will not be able to sue your supplier!

There are plenty of insurers that can provide Products Liability cover for Chinese manufactured products - but expect them to ask a lot of questions regarding quality control etc.

Best to speak to an Independent Insurance Broker who can provide specific advice.

 

[Paul Kelly ICHYB]

Best to speak to an Independent Insurance Broker who can provide specific advice.

Best advice for all business related insurances.