The trouble with imports & exports
If you’ve spent any time at all working with manufacturing or distribution clients, you know that securing cover for the portion of their business that deals with exports or imports can be a difficult task.
In many cases you may need to shop around for multiple carriers or a carrier in another jurisdiction, or perhaps the manufacturer simply opts to self-insure because options are limited.
So why do imports and exports present such a challenge?
Unsurprisingly, a primary reason is cost. Many carriers see the expense associated with defending claims abroad (in the case of exports) as too risky.
With regard to imports, one of the biggest objections we hear is around goods from the Far East. Many carriers won’t consider Far East imports because testing and labelling practices aren’t as robust or they consider the manufacturing standards to be subpar.
This can be particularly challenging because many importers don’t believe they hold liability for goods imported from the Far East, when in reality they carry all of it. It’s not uncommon for producers in the Far East go in and out of business quickly or change names, and many don’t carry their own insurance. This leaves the importer holding the bag when any liability claims come their way.
At CFC, we’ve identified these gaps in coverage and developed a solution that allows us to help our manufacturing clients with these harder to place risks:
- For US exporters, CFC can write up to 100% exports and write on a worldwide basis
- We are happy to consider imports into the US from the Far East and China, we just look for adequate third party quality controls and inspections processes
- We have a particular niche for online and e-commerce sellers including Amazon sellers
If you have any questions about how to secure the right kind of coverage for smaller distributors or manufacturers who deal with importing or exporting goods, get in touch with our team.