EXPORTERS OF PRODUCTS ARE FACED WITH DIFFERING POTENTIAL LIABILITIES IN EACH TERRITORY. HUATAI UNDERSTANDS THESE LIABILITIES AND, IN THE US FOR EXAMPLE, DID YOU KNOW?

Imaginary Law Suits

Did you know about the case of the women who sued the manufacturer of a microwave oven after trying to dry her poodle with disastrous results, or the man who sued the manufacturer of a lawnmower when he lost his fingers trying to lift the machine to cut a hedge? These did not happen.

Statistics

Did you know that a survey revealed that 96% of all US product liability cases were settled out of court, and that the most frequent plaintiffs in products claims is an insurance company attempting to recover payments made for injuries sustained under workers’ compensation programs?

DID YOU KNOW THAT THE PROBABILITY OF A CLAIM BEING MADE AGAINST YOU FOR A DEFECTIVE PRODUCT AND THE LIKELIHOOD OF SUCCESS WILL DEPEND ON THE SIX FOLLOWING FACTORS?

Injury Severity

As the degree of injury severity increase so does the likelihood of a claim being pursued, with attorneys more willing to take on a claim under the contingency fee system.

Total Number of Injuries or Frequency

The number of claims made against you together with corrective action you have taken to avoid repetition will be taken into account when assessing liability, as will your complaint handling procedures and record keeping.

State of the Art

Your product does not have to be the safest on the market, conversely meeting US industry standards does not absorb you of liability. Your product should be safe to the extent that it is economically and technologically feasible.

Acceptable Risk

Some Products cannot be made completely safe due to intended usage, however, any risk must be minimized to be acceptable. This can be achieved in part by effective warning labels/instruction manuals.

Foreseeability

The various potential uses or misuses of a product must be considered at the design state. If potential problems are envisaged and redesign is neither technically nor economically feasible, appropriate warning label/instruction manuals must be issued at the point of sale and/or physically attached to the product.

Experience of Users

Where a user can reasonably be expected to have a greater understanding of the hazards associated with the product as opposed to an ordinary member of the public, liability may be reduced.

WHY HUATAI?

HUATAI UNDERSTANDS THESE ISSUES AND IS ABLE TO SEPARATE THE MYTHS FROM THE FACTS. OUR RISK CONTROL RESOUCE IS AVAILABLE TO HELP AND ADVISE ON ANY OR ALL OF THESE ISSUES TO ASSIST YOU IN AVOIDING OR MINIMISING LOSS.

Product Liability

The costs of defending a claim in the US are expensive, and whilst many of the costs are covered under your policy you could still be faced with substantial hidden costs of time and money surrounding the investigation and defense of a claim, It therefore makes sense to seal with an Insurer which has the experience and resource to help ease the process, thereby minimizing the short and long term hidden costs to your business.

THE QUESTIONS TO ASK WHEN CHOOSING AN INSURER TO COVER THE LIABILITIES ASSOCIATED WITH YOUR PRODUCTS EXPORTED TO THE US ARE:

1. Does the Insurer have the experience and resource to handle a US claim should it occur?

2. Are they able to separate the myths from the facts associated with the liabilities of product manufacturers or suppliers in the US?

3. Do they have a US arm and if so is there regular on-going communication to keep their local offices informed of developments in the various states?

4. Does the Insurer have the resource to discuss labeling/product safety issues to assist risk management programs, thereby avoiding/minimizing loss leading to long term price sanity?

IF THE ANSER TO ALL OR ANY OF THESE IS NO, THERE COULD BE:

a. a misunderstanding if the risks involved leading to incorrect advice on risk control.
b. premature settlement of a claim out of fear of the US system, with the potential for increasing future pricing, loss of market share through bad publicity, and the setting of precedent increasing potential for future losses.

5. Do they have a percentage limit on turnover for US products? – Huatai has no such limit.

6. Have you spoken to Huatai yet? HUATAI operates in 30 cities in China. While its strategic partner – ACE Group operates in nearly 50 countries around the world. We have the expertise of the four corners of the globe.