PUBLIC LIABILITY INSURANCE CASE STUDY
Stone Importer, Products Liability Renewed With Quality Control and Standards Endorsement Weighed
An importer of stone products is treated as the manufacturer for products liability. Four markets were approached at renewal; the dearer of the two formal quotes carried a wording point that mattered as much as the excess.
THE SITUATION
A stone importing business came to its public and products liability renewal with Tank Insurance. In Australia an importer can be treated as the manufacturer of the goods it brings in, so the products exposure carries most of the weight in the premium.
OUR APPROACH
- Four markets were approached. One declined once the target pricing was disclosed, one gave an indication only, and two quoted formally.
- The underwriting questions were answered on the record: right of recourse against all suppliers maintained, a written risk management programme in place, and documented quality control procedures.
- The two formal quotes were compared on more than price. One was approximately $11,200 with a $2,500 excess. The other was approximately $12,500 with a $1,000 excess, and the underwriter offered to go lower if the worker-to-worker excess was raised to $50,000. That underwriter also noted its wording carried no Australian Standards endorsement, so a claim could still be made where an imported product turned out not to meet the standard without the insured's knowledge, a coverage point weighed against price and excess.
THE CHALLENGES
Importer liability quotes are not always like for like. Excess levels, worker-to-worker excesses and standards endorsements change what the policy will actually pay. A cheaper premium bought with a $50,000 worker-to-worker excess is a different product, and the client needed to see that before choosing.
THE OUTCOME
Public and products liability was renewed with About Underwriting at a premium of approximately $11,200 a year with a $2,500 excess, after the client weighed the alternative terms.
Final Solution: Importer products liability renewed at around $11,200 with the quality control and supplier recourse position documented for the underwriter.
This case records one historical outcome; current insurer appetite, premium, timing and terms depend on the complete risk at the time of application.
For the wider buying context, see our public liability insurance brokers page and the plasterboard importer $20M products liability case study.
IMPORTER QUESTIONS
What this placement answers for other importers
Why is products liability expensive for importers?
What is an Australian Standards endorsement on a products liability policy?
What questions will an underwriter ask a stone importer?
PUBLIC LIABILITY INSURANCE
Put this placement in context
Case-study results are historical and are not a promise of current pricing, capacity or policy terms. This page is general information only and does not take account of your objectives, financial situation or needs.
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