Even though growth has slowed in China, they are still exporting to countries across Europe. When products are bought in bulk from China for wholesale in the UK it is imperative that your insurer knows what type of product is being imported and how much.
When goods manufactured in Europe are imported, it is usually the case that a clear chain can be followed back to the
manufacturer so that, should issues arise with a product, the liability can be passed back up the chain. When goods comes from China this could prove to be more difficult as Chinese manufacturers rarely purchase Products Liability Insurance. The legal framework in China also makes it more difficult for your insurers to pursue a recovery should a claim occur. In this instance your insurers will take the view that you are effectively the manufacturer of the products and charge a higher premium to reflect their lack of recovery potential.
The Insurance Act 2015 now means that an insured has a duty to provide a fair presentation of the risk. Therefore, when discussing your risk with a broker you should always try to provide as much information regarding what products are imported, where they are imported from and how much of your turnover relates to each product. Only then can they assess the risk fully and charge the appropriate premium. Should an insurer feel that they have not been given the full information about the origin of the products, and therefore may not have initially entered into the risk, then they 
could avoid the insurance contract or refuse to pay a claim.
So next time you order that shipment from China of new products pick up the phone and tell your broker.
By Louise Nicholson, Account Executive