Canadian businesses importing products from China, India, and Mexico play a critical role in global supply chains. But when you import goods, you also import the liability. Under Canadian law, importers are often treated as the manufacturer if something goes wrong.

Key Risks Importers Face

Importing products exposes businesses to:

• Product liability claims for injury or property damage
• Defects in design, materials, or manufacturing
• Limited legal recourse against overseas suppliers
• Language or labeling errors leading to recalls
• Regulatory actions by Health Canada or CSA

If a claim arises, the importer is usually the first target.

Essential Insurance Coverages

• Product Liability Insurance – Core protection for bodily injury and property damage
• Worldwide Territory Coverage – Including USA if products cross borders
• Product Recall Insurance – Covers notification, disposal, and replacement
• Cargo / Marine Insurance – Protects goods in transit
• Umbrella Liability – Extra limits for severe claims
• Contractual Liability – Meets retailer and distributor requirements

Risk Management Tips

• Use written supplier agreements with indemnity clauses
• Require overseas manufacturers to carry liability insurance
• Conduct quality control and product testing
• Ensure bilingual labeling and regulatory compliance 🇨🇦

Final Thought

Importing products drives growth—but also responsibility. With the right Canadian insurance program, importers can manage global risk while protecting their business at home. 🇨🇦

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.