What Coverages Does this Risk Need?

[iiinycboi]

so i got a prospect, that imports merchandise for clients.


currently he only has 1 client, and 1 manufacturer overseas, he will take the order from client and get it manufactured there. then imports in and remits to client for a fee.

right now, im thinking

BPP for holding the inventory, then GL.

do we need products completion here? He will be ordering the products with client's specs and patent, so all he does is ordering. no repacking or renaming. just being a middle man with a source and making a fee.


now if there were to be a lawsuit with the product who is liable? the patent owner/ seller or the importer / or the overseas manufacturing company (which will not be under any US LAW jurisdiction)

 

[VolAgent]

Who is liable for the shipment while in transit? Does he pay the shipper or the manufacturer for the goods?

 

[Guest]

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[iiinycboi]

its very expensive for roughnotes! i've looked into their checklists but i cant afford it =( i got their magazine tho! and i spent my money on the CIC training lol.

my client pays the manufacture for the goods, and they will ship it to him in US, where my client's client will pick it up. he will not touch the goods. he is solely responsible for placing the order and doing the paperwork.

he makes a commission on the order. basically the clients here dont want to deal with the factories overseas, so they look for a guy to place orders and import it. the manufacturing company has their own insurance.

but i dont know if they will cover the importer/middle man. im just thinking of a scenario where the electronic explodes and hurts someone. who is responsible?

 

[benk622]

So hes a manufacturer's rep? You need to look at any hold harmless agreements he might have out there with his client and the manufacturing company. Our carriers are usually very tight in underwriting these classes they seem to have bad loss ratios

 

[iiinycboi]

basically he knows a lot of manufacturers overseas that can produce anything.

he opens a new corporation in US, and he helps companies here who need overseas manufacturing.

the whole process is, client goes into his office. i need this made for 10cents, he goes to one of his overseas manufacturing companies, and orders them for 10 cents. he charges 12 cents and places the order. the manufacture will make according to specs that is sent in. after it is done, the manufacture will arrange for shipment to US. at the US loading dock/customs. the client's client will arrange for his OWN pickup.

the only responsibility is placing the order, and following up to make sure its on schedule, or any spec changes.

i dont think he will be liable for products completion, because he did not make it and he did not sell it, only acting as a agent on behalf of the factory and customer. he has no warehouse to hold inventory, he works out of a small office. he does not need premises liability.

his concerns are, is he responsible if the product blows up someones hand, products get stolen on route to US, etc...

 

[Bertolinoins]

Does he sell it under his own label? Do the foreign companies carry insurance in the US (hint: probably not).

 

[iiinycboi]

they say the foreign factory has insurance that covers them in US,

but you know... they are in a country that wont "care"

no he doesnt sell under his own label. the factory will put their own name as the manufacturer, and the client's client will ask the box to have his name for the device, as the designer/product name.

the more i think about this, is maybe its professional liability instead of gl?

and my products completion for importers start at 5k min premium.

 

[b61mack]

I think he needs product liability. Ladder companies are always being sued. I don't know what kind of product, but where there are lawyers, you can bet someone will sue.

 

[iiinycboi]

yeah thats what i said, usually you would want some type of product liability if no one has insurance.

someone's lawyer will find everyone to sue first, winning is a different case, but you still need some lawyer money.