General insurance/product liability

[AustinRacing]

Thinking of exporting our product (pet food) to USA. They’re asking for product liability or general insurance from home country. Can someone recommend one?

[Etaoin Shrdlu]

That sounds like a requirement to evidence general and products liability insurance. Since the exports are to the US, there may be a requirement to provide the insurance with coverage responding to both occurrences taking place in the US and claims and suits brought in the US. There may be other requirements that need to be addressed as well.

 

Due to the litigiousness of US society and the large awards granted by the courts, policies covering US occurrences and claims and suits attracts greater scrutiny from insurers and also higher premiums. Some of the multinational insurers present here in Thailand are capable of providing the necessary cover as long as the risk otherwise meets their underwriting guidelines and makes commercial sense.

 

My suggestion would be to engage a professional insurance broker and ask for a review of the details of the contractual requirements and also have a discussion of the potential risks of having a product sold in the US. I do not recommend trying to sort this yourself directly with an insurer.

 

 

 

 

 

[Keeps]

Unless you are talking a high turnover business regarding the exports to the US, I think you will find the costs involved prohibitive. Especially as the product involved is petfood. As outlined in the above post, you will certainly need to engage a broker. They may well seek a US Insurer with local Thai representation who may have a slightly more sympathetic view of the exposure. However, you are probably talking a minimum starting point of US$5-10,000 premium regardless of turnover, much higher if you have substantial turnover. 

 

Have you been asked for a minimum limit of liability - US$ 1m, 5m, 10m?

[AustinRacing]

Thank you guys for the reply. They’ve requested a policy number and it’s not important they say whether it’s local or USA. I’ll check with them. I have received a quotation here in Thailand which is twice as expensive than a USA issued policy. Maybe wise to get it in USA. 

[Etaoin Shrdlu]

10 minutes ago, AustinRacing said:

Thank you guys for the reply. They’ve requested a policy number and it’s not important they say whether it’s local or USA. I’ll check with them. I have received a quotation here in Thailand which is twice as expensive than a USA issued policy. Maybe wise to get it in USA. 

 

I don't think you'll have much success getting a US-based insurer to provide cover for a company incorporated in Thailand. Most insurers will only write policies for insureds that are located within the geography that they're licensed for. 

 

AIG has an office here and is capable of providing general and products liability cover with US occurrences and claims and suits, but as Keeps has said above, they will want a substantial minimum and deposit premium.  If your company does not have significant volume, you may not find it economical.

 

Distributors often require suppliers to evidence a specific limit of liability and also to include them as an additional insured via a vendor's endorsement. You really need to have a good insurance broker look over your contract and advise.

[AustinRacing]

11 hours ago, Etaoin Shrdlu said:

 

I don't think you'll have much success getting a US-based insurer to provide cover for a company incorporated in Thailand. Most insurers will only write policies for insureds that are located within the geography that they're licensed for. 

 

AIG has an office here and is capable of providing general and products liability cover with US occurrences and claims and suits, but as Keeps has said above, they will want a substantial minimum and deposit premium.  If your company does not have significant volume, you may not find it economical.

 

Distributors often require suppliers to evidence a specific limit of liability and also to include them as an additional insured via a vendor's endorsement. You really need to have a good insurance broker look over your contract and advise.

Thank you. Well noted.