Anyone sell products to America? Insurance question.

Discussion in 'General Chat' started by imightbewrong, Jul 9, 2015.

  1. imightbewrong

    imightbewrong
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    We sell baby/infant clothes over the internet to the UK plus various nearby countries and the far-east. We've had increasing interest to sell to America - which seems to trigger extra insurance requirements. We've got a few quotes and they look pretty high to say the least - around £600 per £3000 of turnover ( not profit) - just doesn't seem viable.

    So was wondering if anyone on here sold any physical products to the States and what your insurance experience/recommendations might be?

    Cheers!
     
  2. FZR400RRSP

    FZR400RRSP
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    If you're talking insurance to ship to the states, I can give figures we use on a daily basis.
    If you're talking some sort of product liability insurance, I'm out.
     
  3. imightbewrong

    imightbewrong
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    Yes the latter - minimum legal requirement.
     
  4. SteakAndCake

    SteakAndCake
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    Why is it more? It is because Americans are stupid and may try to eat your baby clothes then sue you they don't keep their insides warm?
     
  5. Janusian

    Janusian
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    Two reasons. Americans are more likely to sue and it costs a hell of a lot more when they do. The latter is partly due to the cost of their legal systems but mainly due to what are called punitive damages. In the UK if you sue someone the award is the amount to 'right the wrong'. In the US they will find against you for this and a hefty extra dose to punish you for doing wrong in the first place.
     
  6. SteakAndCake

    SteakAndCake
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    Screw that. If I was in OP's position, the hell I'd sell baby clothes to the yanks. Can you imagine the punitive damages for a baby's death?
     
  7. imightbewrong

    imightbewrong
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    Yes - so far we can sell to most of the world - adding America is pushing the price up 10x.
     
  8. SteakAndCake

    SteakAndCake
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    Let the colonial spawn wear ****** sacks. Sell your wears to people that know how clothes work.
     
  9. imightbewrong

    imightbewrong
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    I like the idea, but the colonial spawn have $$$$$$$$$
     
  10. IronGiant

    IronGiant
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    That's just... Wow :eek:
     
  11. SteakAndCake

    SteakAndCake
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    I was shocked too, then I just imagined all of OP's US customers as Ralph Wiggum and it kinda made sense.
     
  12. imightbewrong

    imightbewrong
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    Yes - which makes me think we're 'doing it wrong'
     
  13. SanPedro

    SanPedro
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    My wife had this issue wanting to sell children's musical instruments to the US. Just couldn't make it pay, even though the goods were CE certified and everything. There may be some US certification that would mitigate the insurance cost ie you wouldn't need the extra insurance. We didn't investigate it any further.
     
  14. imightbewrong

    imightbewrong
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    Interesting - thanks.
     
  15. nheather

    nheather
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    Wow, I can't imagine any low to medium margin business be able to support that - you'd have to be making 20% profit before insurance just to break even.

    Makes you wonder how internal business manage - I wonder whether this is just another one of the US measures to discourage imports.

    I've recently experienced a 'boot is on the other foot' situation that made me smile. I work on a large US-led project that up to now has been constrained to the US but is getting ready to roll out to other partner nations that include European countries.

    The requirements for CE marking on the hardware were introduced - it was really funny, first seeing that the Americans have no idea what it is and then, as the penny dropped, seeing them squirm, whine and moan.

    Cheers,

    Nigel
     
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  16. DIYlady

    DIYlady
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    I don't know anything about this, but would it be possible to set up an independent company for the U.S. sales so that insurance for US was only based on turnover for U.S?
     
  17. ldoodle

    ldoodle
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    I was thinking the same.
     
  18. imightbewrong

    imightbewrong
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    A good idea, but the turnover is based on bands and I think it doesn't shift us to a lower one taking our other turnover out. They couldn't ( or wouldn't) give us the bands which makes it a bit of a guessing game.
     

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