Does Product Liability Cover Products Manufactured Overseas?

The manufacturing country alone does not answer whether a U.S. seller has product-liability protection. Coverage depends on the policy’s description of insured products and operations, the named insured, and the territory for injury or suit. Overseas contract manufacturing, component sourcing, and private labeling should be disclosed because the business’s role may differ from that of the factory.

Ask the insurer to confirm which products and manufacturing locations the quote includes. Check foreign-products, jurisdiction, or territory restrictions and whether the policy covers claims brought in the United States. The Insurance Information Institute notes that overseas supply chains can create product-safety and recall concerns, but that fact is not a coverage grant. If your company is only a distributor or brand owner, do not assume the factory’s insurance names or protects your business. Ask whether your own entity is an insured and whether defense is available for US suits.