Product-liability duties vary by market, and insurance does not automatically cover every product or claim. Identify your role, keep product records, and confirm policy wording with a qualified broker and local counsel.
Start with the role and market
Before placing a product on a market, record where it will be sold, who imports and brands it, which product rules may apply, and who is responsible for customer and regulator contact. A distributor, importer, manufacturer, marketplace seller and private-label brand owner may have different duties. Contract language can allocate work between companies, but it does not by itself remove duties imposed by applicable law.
For example, Article 11 of the EU General Product Safety Regulation sets out importer obligations for products within that Regulation’s scope, including checks before placing a product on the market, contact details, instructions and safety information, and cooperation when a product is considered dangerous. The Regulation has defined scope and must be considered alongside any product-specific rules. In the United States, CPSC guidance explains that manufacturers, importers, distributors and retailers can have immediate reporting duties for specified safety information under laws enforced by the agency. These are market-specific examples, not a universal rule that every importer is legally the manufacturer.
Build a product and traceability file
Keep one controlled file for each product family and revision. The record should let a buyer identify what was ordered, what was approved, what was shipped, and how a concern was handled. Useful records include:
- Supplier, SKU, drawing revision, bill of materials or material declarations, finish code, and approved product configuration.
- Current specification sheets, installation instructions, warnings and market-specific labels, with the responsible party for each document.
- Applicable test reports and certificates, including the tested model, sample configuration, method, date and laboratory. A report for one configuration should not be presented as proof for an untested configuration.
- Sample approval, first-article and inspection records; batch or lot identification; packaging artwork; and change notifications. See the sample approval checklist and inspection-plan guide.
- Customer complaints, incident details, photographs, investigation notes, corrective actions and disposition decisions, linked to the product revision and lot where possible.
Ask the broker about the policy, not just the certificate
Coverage depends on the issued policy, endorsements, exclusions, insured activities, territory and claim facts. A certificate is evidence of specified coverage; it is not a complete explanation of what a policy will pay. Ask the broker to review the actual wording for these points:
- Are the products, brands, sales channels, countries and installation or distribution activities accurately declared?
- Does the policy include the relevant products and completed-operations coverage? What limits, deductibles, aggregate limits and exclusions apply?
- Is the policy claims-made or occurrence-based? If claims-made, what retroactive date, reporting conditions and extended reporting options apply?
- Are defense costs inside or outside the stated limits, and how are additional insured requests handled?
- Are recall, withdrawal, replacement, customer notification, cargo-in-transit and warehouse-stock losses covered by this policy or a separate policy? Do not assume they are included.
Give the broker accurate product and sales information. Ask for written answers that identify the policy or endorsement reviewed, then confirm renewal dates and any notice requirements.
Use contracts to make responsibilities workable
Supplier agreements can set specifications, change-control notices, inspection rights, record retention, complaint escalation, corrective-action cooperation, indemnity and insurance requirements. Define the products and markets covered, what evidence must be supplied, who pays for investigation or rework, and how urgent safety issues are escalated. Have counsel check whether each clause is enforceable and consistent with local law. An indemnity or insurance certificate is not a substitute for market-specific compliance or product controls.
Set a written incident workflow
When a report concerns injury, property damage or a potentially unsafe product, preserve the product and packaging where practical, capture the model, batch, installation and event details, and avoid altering evidence. Notify the designated internal contact, broker, supplier and counsel under the agreed process. Assess whether shipments or listings should be paused while the issue is investigated. If a reporting, corrective-action or recall duty may apply, follow the relevant authority’s current instructions and obtain qualified advice promptly.
Review the file when something changes
Recheck the file when the product, material, finish supplier, factory, packaging, sales market, installation instructions, distribution model or insurance policy changes. A short review log can record the date, reviewer, change, documents checked and open actions. Keep retention periods tied to market requirements, contracts, limitation rules and the insurer’s policy conditions; there is no single retention period that fits every business and jurisdiction.
This article is a procurement and record-keeping checklist, not legal, regulatory or insurance advice. Confirm the rules for the specific product and destination market with qualified professionals.
Frequently Asked Questions
Does importing shower hardware automatically make my company the manufacturer?
No single answer applies in every market and product category. Importers can have specific legal duties, and placing a product under your own name can change responsibilities under some regimes. Check the law that applies to the product and destination market.
Does general liability insurance always cover a product injury?
No. Coverage depends on the issued policy, endorsements, exclusions, limits, territory, insured products and claim facts. Ask a broker to review the actual wording for products and completed operations.
Is product recall cost included with product liability cover?
Do not assume it is. Ask whether recall, withdrawal, customer notification, replacement and related expenses are covered, excluded or available under separate wording.
Which supplier records should I request first?
Start with the current SKU and drawing revision, materials and finish, approved configuration, applicable test evidence, instructions and labels, lot traceability, and change-notification process. Verify that each record covers the product being purchased.
How long should product records be retained?
Use the applicable market rules, contract terms, claim timelines and policy conditions to set retention periods. Ask local counsel and the broker to confirm the schedule for your products and sales markets.