Selling manufactured products into the United States can unlock massive growth for Canadian companies—but it also introduces one of the highest liability exposures in the insurance world. U.S. lawsuits are more frequent, more aggressive, and far more expensive than those in Canada.

Why U.S. Exposure Is High Risk

Manufacturers face elevated risk due to:

• U.S. product liability laws favouring consumers
• Jury awards reaching millions—even for minor defects
• Class-action lawsuits
• Broad definitions of bodily injury and property damage
• Defence costs that escalate quickly

Even a single claim can threaten your balance sheet.

Critical Insurance Coverages to Review

• Product Liability Insurance (with U.S. Territory) – Must explicitly include the USA 🇺🇸
• Completed Operations Coverage – Protects after products are sold
• Recall Expense Coverage – Covers notification, disposal, and logistics
• Umbrella / Excess Liability – Higher limits are often essential
• Contractual Liability – Required by U.S. distributors and retailers

Many Canadian policies exclude or severely limit U.S. exposure unless disclosed upfront.

Risk Management Tips

• Disclose all U.S. sales channels and distribution methods
• Review contracts for indemnity and insurance requirements
• Implement strict quality control and traceability systems
• Maintain clear product warnings and instructions

Final Thought

Cross-border growth brings opportunity—but also serious risk. With properly structured Canadian insurance and higher liability limits, manufacturers can expand into the U.S. market with confidence. 🇨🇦

Brokers can contact Total Risk Managers to discuss a risk.

This article is general information for insurance brokers. It is not advice, and it is not a quote or an offer of coverage. Policy wording decides what is covered. Coverage is arranged through a licensed insurance broker.