Product Liability for Importers: What Happens If Your Product Hurts Someone

You're the Responsible Party

When you import a product and sell it to consumers, you are the legal manufacturer or responsible person in your market — even though someone else actually made it. If that product injures someone or damages property, you can be held liable.

This isn't theoretical. Product liability claims happen to small importers, and the financial consequences can be severe.

How Product Liability Works

Strict Liability

In most jurisdictions (US, UK, EU), product liability is strict — meaning the claimant doesn't need to prove you were negligent. They only need to prove:

1. The product was defective
2. The defect caused injury or damage
3. The product was being used as intended (or in a foreseeable way)

Types of Defects

• Manufacturing defects — an error in production that makes a specific unit dangerous
• Design defects — the product's design is inherently unsafe
• Warning/instruction defects — inadequate warnings or instructions

What's at Risk

Financial Exposure

• Medical costs, lost wages, and pain and suffering for the injured party
• Property damage costs
• Legal defence costs (even if you win, defending a claim is expensive)
• Product recall costs
• Regulatory fines

Business Impact

• Amazon account suspension
• Loss of marketplace selling privileges
• Reputational damage
• Potential criminal liability in severe cases

Which Products Carry the Most Risk?

How to Protect Yourself

1. Product Liability Insurance

This is non-negotiable. Product liability insurance covers:

• Legal defence costs
• Settlements and judgments
• Product recall expenses

Typical cost: $300–2,000/year for small importers, depending on product category and revenue.

Many marketplaces (including Amazon) require proof of product liability insurance for certain categories.

2. Compliance Testing

Before importing, ensure your product meets all applicable safety standards:

Use accredited testing laboratories. Keep all test reports and certificates — they're your evidence of due diligence.

3. Quality Control

• Pre-shipment inspection on every order
• Define clear quality standards with your supplier
• Test incoming goods against approved samples
• Maintain a quality tracking record in your product catalog

4. Written Agreements with Suppliers

Your supplier agreement should include:

• Product specifications and safety standards
• Indemnification clause (supplier agrees to share liability)
• Right to inspect and reject non-conforming goods
• Insurance requirements

5. Proper Labelling and Warnings

• Include all required safety warnings in the appropriate language
• Provide clear instructions for use
• Include your company details (as the responsible person)
• Meet all labelling regulations for your target market

6. Record Keeping

Maintain detailed records of:

• Supplier details and agreements
• Test reports and certifications
• Inspection reports
• Customer complaints and how they were resolved
• Batch/lot numbers for traceability

What to Do If a Claim Arises

1. Notify your insurance provider immediately — don't try to handle it yourself
2. Preserve all evidence — product samples, documentation, communication
3. Don't admit liability — let your insurer and legal counsel guide your response
4. Cooperate with regulators if contacted
5. Consider a voluntary recall if there's a genuine safety issue

The Cost of Getting It Right vs Getting It Wrong

The maths is clear. Invest in prevention.

Track all your compliance documentation, supplier certifications, and inspection results in LandedCost.io's product catalog to maintain a complete audit trail.