Product liability insurance for China imports
Ask your broker to confirm that the policy covers your actual China-sourcing activities, product range, own brands and sales territories. Read exclusions, claim conditions and limits before accepting the quote; cargo insurance serves a different purpose. Sourcing records can support this assessment with help from Cambridge China Bridge.
Describe the business the insurer is covering
Send the broker a written description of what you import from China, who uses it and how you sell it. Include wholesale, retail, marketplace sales and direct deliveries from the factory where relevant. Describe any design, assembly, modification, installation or repair work. Ask whether the proposed business description captures these activities.
Check the insured company name against the entity importing and selling the goods. Give the broker product specifications, intended uses, sales destinations and relevant claims history. Ask for written confirmation tied to the policy wording and schedule, rather than relying on a certificate headed ‘business insurance’. Official guidance distinguishes product liability insurance from general business and employer’s liability insurance.
Declare own brands and product changes
Tell the broker explicitly if you put your name or trade mark on goods made by a Chinese factory. Our guide on who is liable when you import explains the importer and own-brand liability position. For this insurance assessment, ask the insurer to confirm acceptance of your own-brand range and your role in specifying it. For environmental marketing, see our guide to importer liability for supplier green claims.
Provide the actual configurations you sell, including accessories, materials and intended users. Ask how to declare a new product category, changed component or new factory before introducing it. Use our certification guide to assess supporting documents; a supplier’s test report should not be treated as confirmation of insurance cover.
Test exclusions against realistic claims
Ask the broker to explain how the wording would respond if a product injured a customer or damaged their property. Separately ask about replacing the defective product, refunds, withdrawal, recall, disposal and lost sales. Have the broker identify what is covered, excluded or available through separate cover. Do not assume that handling an injury claim also pays for retrieving stock.
Read product exclusions, contractual liability clauses and conditions concerning testing, instructions and records. Compare quotes on the same basis: claim limits, any shared annual limit, excesses and whether defence costs reduce the available cover. Ask which notification deadlines and settlement approval conditions apply. Keep batch and inspection records together using our inspection guide.
Check sales territories and claim jurisdictions
Give the broker a country list covering direct sales, marketplace orders and known onward exports by customers. Ask separately where products may be sold or used and where a claim may be brought. A territorial description alone does not answer both questions; ask the broker to show you the relevant clauses.
Discuss overseas online orders before enabling delivery to a new destination. Ask how indirect exports, temporary overseas use and sales through distributors are treated. Have any agreed extension reflected in the policy documents. Also ask how the policy treats goods already sold if you change insurer or stop importing.
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Keep cargo cover separate and close the gaps
Cargo cover concerns loss of or damage to goods during transport. Product liability cover concerns claims against your business arising from products, subject to its wording. For example, cartons damaged in transit and a delivered appliance injuring its user call for different insurance checks. Our cargo insurance guide covers the transport side.
Before accepting cover, collect the proposal, schedule, full wording, endorsements and written answers to unresolved questions. Ask the broker to explain when cover responds and how to report an incident. Cambridge China Bridge’s staff in China can help assemble factory, specification and inspection records for the assessment; ask your broker or insurer to confirm the insurance position.
Frequently asked questions
Does business insurance cover products imported from China?
Do not assume so. Ask the broker to identify the product liability section and confirm your imports, product categories, activities and insured company in writing.
Do I need to declare own-brand products?
Tell the broker that your name or trade mark appears on factory-made goods. Ask for written acceptance of the own-brand range and your design or specification role.
Does product liability insurance pay for a recall?
Ask explicitly. Check withdrawal, recall, replacement, disposal and customer refunds separately from injury or property damage claims, and identify any separate cover needed.
Does cargo insurance cover a customer injury?
Do not rely on cargo cover for that claim. Cargo insurance concerns goods in transit; ask your broker to assess the injury claim under your product liability wording.