Importer
What Is an Importer?
An importer is a person or organization bringing goods or services to a country from abroad for sale.
Do Importers Need Product Liability?
Definitely, for two big reasons: legal protection and stronger partnerships.
Think of the supply chain as a row of standing dominoes on a table. For U.S.-made products, the manufacturer is the first domino in line. But when you import, the manufacturer domino is on a different table entirely. Suddenly, you, the importer, are right at the front.
If something tips, you’re the first to go down — even though you didn’t make the product. That’s where importer product liability insurance comes in:
- It covers you in lawsuits: If something you bring into the country causes injury or damage, U.S. law treats you like the manufacturer in a product defect lawsuit. Insurance helps cover your legal and financial costs, so one faulty product doesn’t topple your whole business.
- It opens doors for contracts: Many retailers and marketplaces want proof of product liability insurance before they’ll work with you. Having coverage keeps you ready, reliable, and easy to say “yes” to.
Insurance protects more than your wallet — it protects your momentum, your business relationships, and your peace of mind.
What Product Liability Risks Do Importers Face?
Importers take on more responsibility than they may realize. Here are some of the most common risks, and why product liability insurance is such a smart safety net:
- Manufacturer-level liability: In U.S law, importers are often treated like the manufacturer in product liability cases. That means you can be named first in a lawsuit (instead of the manufacturer) if the factory was overseas.
- Injuries and property damage: If a product has defects in its design, manufacturing, warnings, or instructions, you could face claims for medical bills, repairs, lost wages, and more.
- Retailer and marketplace rules: Big-box stores and platforms (like Amazon) usually want proof of insurance. They may freeze your listings or cancel orders if you can’t provide it.
- Regulatory compliance: Products that don’t meet safety and labeling rules (like CPSIA, FDA, FCC, CPSC, and Prop 65) may get stopped at the border, fined, or recalled.
- Recalls and withdrawals: Getting recalled products off shelves can be expensive. Importers may need to notify customers, rework or dispose of defective products, and manage public relations. Basic liability insurance usually won’t cover these costs.
- Limited visibility into your supply chain: It’s not always easy to track every supplier or component, making it harder to prove where a problem started.
- Documentation gaps: Missing test reports, lot numbers, or records can weaken your defense in court and slow down claims.
- Weak factory contracts: If your suppliers don’t agree to share responsibility or follow testing requirements up front, you could be left holding the bag.
- Coverage blind spots: An insurance policy that doesn’t match where you sell (and where lawsuits would be filed against you) can leave gaps in your protection.
- Labels and warnings: Poor instructions, bad translations, missing hazard warnings, and other deficiencies can lead to failure-to-warn claims.
The good news: Every one of these risks is manageable. With the right product liability insurance and strong contracts, you have the support you need to thrive.
Importer Product Liability vs General Liability Coverage: What’s the Difference?
Think of general liability as your “slip-and-fall” coverage and product liability as your “something went wrong with my product” coverage. Here’s how they both work:
| Importer Product Liability | Importer General Liability | |
|---|---|---|
|
Primary focus |
Injuries or property damage caused by your products (you’re often treated like the manufacturer) |
Slips and falls, damage to someone else’s property, and advertising accidents not related to product defects |
|
Common risks it covers |
Defects in design, materials, labels, or instructions that cause harm after the product is out of your hands |
A visitor trips in your warehouse, you break a client’s equipment on-site, or an ad claim goes too far |
|
Who asks for it |
Retailers, distributors, and platforms (like Amazon) before they’ll list or order your products |
Landlords, event venues, trade shows, and some vendors |
|
Typical limits |
$1M per occurrence / $2M–$5M aggregate (depends on retailer or contract) |
$1M per occurrence / $2M aggregate (depends on venue or lease) |
|
What it usually doesn’t cover |
Product recalls (unless added), intentional acts, known defects, professional errors (that’s professional liability) |
Product-caused injuries after sale (that’s product liability), recall costs, employee injuries (that’s workers comp) |
|
Best for |
Importers and brands putting goods into U.S. commerce who need protection for product-related harm |
Day-to-day operation risks and basic contract or lease requirements |
Additional Resources
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