The Hidden Risks of Importing Foreign Products And How We Can Help Protect Your Business

​In today’s global economy, importing products from overseas has become a smart way to reduce costs and stay competitive. But while sourcing goods from abroad can improve your margins, it also opens the door to a wide range of liability risks that many businesses overlook, until it’s too late.
Whether you’re importing electronics, cosmetics, toys, tools, or machinery, if something goes wrong, you’re legally and financially responsible. Here's what you need to know, and how our agency helps businesses like yours manage that risk.
 
Why Importing Means More Responsibility Than You Think
Under U.S. law, any company that imports products into the United States is considered the manufacturer in the eyes of the courts and regulatory agencies, even if you didn’t physically make the item.
That means if the product:

• Causes injury or property damage
• Fails to meet U.S. safety standards
• Has undisclosed defects
• Is recalled by regulators

Your company can be held liable. And the financial fallout can be devastating.
 
Top Risks When Importing Foreign Products
1. Product Liability Lawsuits
If a customer gets injured using your imported product, even due to a design or manufacturing flaw overseas, you could face a costly lawsuit.
Our Solution:
We provide Product Liability Insurance tailored for importers. This coverage can help protect you from claims related to bodily injury, property damage, and even legal defense costs.
 
2. Lack of Regulatory Compliance
Foreign manufacturers don’t always understand or comply with U.S. laws (like FDA, CPSIA, or UL standards). Non-compliant products can be seized at customs or recalled after they’ve hit the shelves.
Our Solution:
We help our clients work with vetted vendors and build coverage that includes recall costs, regulatory compliance risks, and supply chain consultation.
 
3. Supply Chain Disruptions
From port delays to overseas factory shutdowns, importing products comes with unpredictable timelines. Late deliveries can hurt your business reputation and disrupt revenue.
Our Solution:
Marine Cargo and Transit Insurance protects your goods while in transit—whether by sea, air, or land. We can also help you structure contingency plans and business interruption coverage.
 
4. Lack of Insurance From Foreign Suppliers
Don’t assume your overseas manufacturer has sufficient (or any) liability insurance. And even if they do, it’s unlikely to be enforceable in the U.S. court system.
Our Solution:
We advise clients not to rely solely on foreign vendor policies. Our team can help you craft contracts and indemnification language that protects your interests, and back you with solid insurance that works where you do business.
 
5. Reputational Risk
One poorly made or unsafe product can lead to bad press, lawsuits, or even bankruptcy. Importers often bear the brunt of consumer backlash.
Our Solution:
Beyond insurance, we provide reputational risk guidance and recall response planning to help you respond quickly and responsibly in the event of an issue.
 
Industries That Should Take Note
If you import goods from overseas and resell them in the U.S., you're taking on risk, especially if you're in industries like:

• Consumer electronics
• Supplements and health products
• Baby and children’s items
• Tools and hardware
• Industrial machinery
• Food and beverage packaging

Whether you're selling online, through retail stores, or distributing to resellers, the liability follows you.
 
We Help You Stay Protected and Prepared
We specialize in helping importers and product-based businesses protect their operations, their customers, and their reputation. We offer:

• Product Liability Insurance
• Recall Expense Coverage
• Marine Cargo/Transit Insurance
• Contract Review Support
• Custom Risk Assessments

You don’t need to face these global risks alone, we’re here to help you build smarter protection for your business.
 
Let’s Talk Before You Ship
Importing can be a competitive advantage, but only if you're properly protected. Let us help you put a plan in place before that next container arrives.