Do you understand the risks involved with importing products and supplies?
It’s important to know that in the eyes of your insurance, once you’ve imported supplies or products you become responsible for their quality assurance – in fact, you are deemed the ‘manufacturer’ when it comes to assuming the risk for that product’s performance.
So for example, if an electrician imports wiring or switchbboards that fail and cause a fire, or a plumber imports flexi-piping that floods a building, there is a risk that a business faces if they haven’t disclosed this activity they may not be covered by a typical trades business insurance solution. This could leave you 100% liable for damage, loss or injury caused by the product or materials you’ve imported.
What should you consider if you do source supplies from overseas?
The first and most important thing is to ensure that your insurance broker knows that you import supplies as part of your business operations. That way, they can make sure you’ve got an appropriate insurance solution in place.
It’s likely that covering your import risk will increase the cost of your insurance premiums. Some clients have debated whether less expensive cost of overseas goods is still worth the increased risk and cost of cover, but whatever you decide to do, we want it to be with full awareness of your risks and what’s included (or excluded) from your insurance solution. Should you have any questions about your specific situation, please don’t hesitate to contact us.
