Safely importing and distributing products made offshore
Aussies love to shop. At the click of the mouse, we can order just about anything we want.
Behind the scenes are importers and wholesalers who make it all happen.
Under Australian consumer law, an importer can be deemed the manufacturer and, therefore, liable and legally responsible for any problems caused by the product.
Many “off the shelf” insurance policies online do not take into consideration the risk associated with importing. This makes getting the right insurance advice important.
Key Risks for Importers and Wholesalers
Public and Product Liability Insurance
Public and Product Liability Insurance covers your legal liability to third parties for product damage and bodily injury caused by your activities. The policy can also cover legal fees you incur to defend yourself.
For example, if someone is injured while using your product it is likely they will seek compensation from you.
Public and Product Liability insurance can protect your business and defend these types of claims.
Goods in Transit / Marine Cargo Insurance
Generally, Property Insurance will not provide cover when goods are away from your place of business.
If your stock is on the way from the manufacturer, or in transit to your customer, a Marine Cargo policy can provide protection from theft and damage which occurs on the journey.
Depending on your needs, cover can be Australia wide or Global.
Warehouse / Stock Insurance
Whether you rent, own or use a 3PL, protecting your stock is critical to the success of your business.
Other equipment you own such as forklifts, racking and office contents can also be insured.
Cyber Risk Insurance
Cyber insurance covers the costs associated with cyberattacks, including ransomware, data breaches, and system recovery.
You may hold Personal Information about your customers. This information is gold for cyber criminals who can sell this information or use it to commit online crime.
Cyber Insurance can also cover lost sales due to a cyber attack taking your website offline.
How Tempo Insurance can help
Tempo insurance have experience with importers and wholesalers ranging from start up online seller to large importers operating all around Australia.
- Sports and gym equipment
- Electrical goods
- IT components
- Food products
- Hardware
- Homeware and furniture
- Industrial products
- Medical and personal care products
- Construction materials
Contact us for a quote or more information about Import Insurance
Frequently Asked Questions about Import Insurance Policies
Should I have Liability Insurance for my Import and Wholesale business?
Yes!
Australia is one of the most litigious countries in the world. Under Australian Law, importers are responsible to make sure that products are safe and fit for purpose.
Public and Product Liability Insurance covers your legal liability to third parties for product damage and bodily injury caused by your business. The policy can also cover legal fees you incur to defend yourself.
Additionally, your landlord or customers may request evidence of your Public and Product Liability cover.
Do I need product recall insurance?
Product Recall Insurance covers the cost of recalling your products in the event they pose a safety hazard to users. The cost of a product recall can be significant. Product manufacturers should consider this cover.
There are approximately 300 product recalls issued by the Australian Competition and Consumer Commission each year. Recalled products included motor vehicles and Christmas decorations but the bulk of recalls (about a third) were food recalls.
Recall insurance can be packaged with Public and Product Liability or arranged as a standalone policy.
Product Recall insurance can cover:
- Fees that you must pay a retailer to remove a product from the shelf
- Advertising fees to alert the public of the recall
- Replacement of item and loss of profit
- Safe disposal of the item
Do I need Trade Credit Insurance?
For many companies, accounts receivable is one of the largest assets on their balance sheet – But what if your client does not pay?
Trade Credit insurance covers bad debts due to insolvency or default.
Trade Credit insurance does not replace good credit management, but as we have seen time after time, just one corporate insolvency can have a domino effect and threaten the financial survival of businesses that it trades with.
Contact us for a quote or more information.
