China’s exports rose 7% in 2022, reaching US$3.59 trillion. Growth on that scale carries risk: damage to goods in transit, product defects and products that fall short of foreign safety rules.
A product liability policy generally covers the cost of defending a claim and any compensation awarded. Some policies also cover recalls, which can be very costly for an exporter.
Trade tensions raise the chance of lawsuits or penalties for violating U.S. regulation, while supply chain disruption adds cost, delay and damage.
Some exporters are adopting blockchain and AI to make supply chains more transparent and to tighten quality control.
