IMPORTERS URGED TO INSURE THEMSELVES

DID YOU KNOW?
Anyone in Australia who imports a product, will be the deemed to be the manufacturer for the purposes of the Australian Consumer Law (ACL). Even though the importer has not manufactured the product, this law is in place as a matter of public policy to ensure that importers are not importing poor quality products for consumers without the imported products undergoing the proper checks to ensure the product’s safety.

In other words, importers of products will be held to the same

manufacturer standards as those that apply here in Australia.

WHAT TO DO
Based on the above, importers of products into Australia should seriously consider purchasing public liability and product liability insurance for their business. This insurance protects the insured against claims related to the personal injury or property damage caused by these imported products. In most cases any legal or court costs would also be covered.

When you take out public liability and product liability insurance, an insurer needs to undertake an upfront risk assessment of your business which includes understanding the products you will be or are importing and from which overseas countries they are being imported. Remember, it is the insurer from a cost perspective who carries the importer’s risk, in the event that something occurs with the imported product that might give rise to an insurance claim.

TRYING TO CLAIM AS AN IMPORTER FROM AN OVERSEAS MANUFACTURER CAN BE PROBLEMATIC
At the best of times it is probably impossible for an Australian importer to claim for poor standard products from third world countries, from where a huge volume of products in Australia are now sourced.

DO YOUR DUE DILIGENCE
One of the most important aspects for the product importer is to advise any prospective or current insurer and upon each renewal:

• That you import products (specifying where from) on your insurance applications
• Wherever possible it may be worthwhile providing a detailed list to the insurer \
• Check whether you receive any quality control certificates from the overseas manufacturer
• It is advisable to notify your insurance broker, even midterm, if the geographical location from which the products are imported changes and/or the imported products themselves change. Overall, any changes that may be different to what you originally advised your insurance broker should be communicated as this may increase the insurer’s exposurure to claims.

HOW WE CAN HELP YOU WITH PUBLIC & PRODUCTS LIABILITY INSURANCE
We urge all business owners to contact their insurers or brokers to help investigate and review your current insurance covers.

Using an insurance broker will save you time and money because they can provide you with expert knowledge, advice, and negotiate competitive premiums on your behalf.