Product liability insurance is a crucial coverage for businesses that manufacture, distribute, or sell goods. However, when products are sold internationally, the risk landscape changes. Many companies are unaware of the differences between foreign and domestic product liability insurance. Understanding these distinctions is critical for businesses that operate across borders.
1. What Is Domestic Product Liability Insurance? Domestic product liability insurance covers claims that arise from products sold within the same country where the business is based. If a company manufactures a product in Texas and sells it within the United States, a standard Product Liability Insurance policy would cover bodily injury, property damage, and legal fees resulting from product-related incidents. Key coverage areas include:
When a company exports products to other countries, Foreign Product Liability Insurance is required. This coverage accounts for legal and regulatory differences in international markets. Key differences include:
3. Why Businesses Need Both Coverages For companies selling internationally, having both domestic and foreign product liability insurance is crucial. Some key reasons include:
Understanding the difference between domestic and foreign product liability insurance is crucial for businesses operating globally. By working with an experienced insurance agent, companies can ensure they have the right coverage for both local and international markets. Leave a Reply. |
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3/19/2025
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