Writing a Right of Recourse - Product Liability Insurance - Chinese Suppliers

[FrayB]

Hi new to the forum, hoping somebody can help or advise me on my situation

Right ive been working on getting some product liability insurance for a while now

My business sells electronic equipment manufactured in China

We realise it is difficult getting insurance when your unbranded products are manufactured in China but a a few insurers have said they will give us the insurance if we can provide 'rights of recourse'

Now I don't have any contracts with the suppliers and was never given any but we have spoke to them and they are willing to sign a contract if we give it to them

I then went to a solicitor to ask about writing a right of recourse up but he said that he didn't want to potentially waste my money unless he knew exactly what the insurer wants to see in the document, now when I have asked this to a couple of the insurers they have not been very forthcoming about this and have basically said that I should get a solicitor to write one up so im kinda stuck here

My questions;

Does anybody know of any of any help I can get with making the contract?

Secondly I believe that the suppliers are only willing to sign the contract because they know that insurers stand no chance of getting any money off them so why would an insurer be willing to even ask me for a 'rights of recourse'?

And advice greatly appreciated

 

[Stephkk]

Hi, Did you resolve your insurance issue? Im having the same problem!

 

[Simply Business]

Hi guys,

Can completely appreciate the situation you both must be in. A lot of insurers won't even offer product liability on products manufactured in China, let alone electronic equipment - ourselves included.

Have you tried http://www.biba.org.uk/ ? They might be able to shed some light on the issue?

Best of luck, sounds stressful! Let me know how you get on

 

[Stephkk]

I've found that if you mention you wish to export to the USA or Canada they will pretty much hang up the phone... I think if you are wishing to sell to the US or Canada then you may need to take out a separate insurance to cover that market.

I spoke with biba and their response was "we don't cover beauty products" I asked if they knew anyone who could help, or what my options were, and they told me to "Google It"... Not much help i'm afraid. My product is low risk, so its becoming very frustrating.

Try googling 'e-commerce insurance' and their seems to be a few insurers coming up that deal with imported goods.
I have just got off the phone from Worrell Fry & Co Ltd they were the most helpful people i've had since my stressful 24hour search! They explained that I can't have Product liability without Public liability (but as I won't need it they will keep that cost low). They haven't asked me for a Rights of Recourse, but the pro forma invoice I have clearly states all products provided by the factory along with their bank details and address. Hoping that will be enough.

Going to call a few more, will let you know when I hear more

 

[Daniel Jack]

Hi Stephkk

I am having a similar issue. Did you manage to sort product liability insurance?

Thanks in advance for your help.

Regards

 

[Stephkk]

Hi Daniel
Yes I went with Worrell Fry & Co, really helpful people! Highly recommended after being left to feel I may not even be able to carry my business on due to unhelpful insurers telling me no all the time. Couldn't believe it, considering I'm not the only business importing the same product from China to the UK. Give them a call, hopefully they can help you

 

[NatalieCahill]

Hi,

Just wondering can I ask how Worrell Fry & Co helped you with this, we are having a similar issue with insurance regarding non electrical beauty products.

Thanks,

Natalie

 

[MOIC]

I wish you all luck getting any recourse for insurance purposes from any China supplier.

It just ain't gonna happen.

Do your due diligence on the supplier and more importantly the products.

Check and VERIFY all REQUIRED certificates that the products have been tested by an internationally recognised authority and ensure they specifically relate to ALL the products you are purchasing.

That's as far as you will get to knowing the products are "safe" according to the tests carried out.