Many importers get concerned about the legal responsibility regarding a product when they are researching products such as chainsaws, motorbikes and all-terrain bikes etc.
If you have a product with moving parts or are worried about a lawsuit by someone using your product, then you can take out a type of insurance called ‘Indemnity Insurance’. This type of insurance helps to cover you against a claim (should it arise)
There are many factors that could influence whether you require this insurance and how much the premium will be. Obviously a higher risk product such as chainsaws could have a higher premium compared to something that is seen to be low risk such as clothes. If you’re selling clothes then you probably wouldn’t consider this type of insurance.
It’s best to speak to an insurance broker about the level of cover that you require for your product and the proposed insurance premium.
This type of insurance would be utilised if you’re importing and selling products like motorbikes, chainsaws, welders, and power tools. Note these are only a few examples.
This insurance could be considered equivalent to the insurance that a retail shopkeeper would hold to cover themselves from someone falling over or using their products and subsequently causing an injury.
If you choose this insurance then the cost of the insurance should be factored into your cost per item, so that you can work out your profit margin during your research phase