Imports Create Implications for Business Insurance
News from the US came in last week that will impact a number of business insurance companies.
Many US construction companies and building materials suppliers relied on Chinese imports of drywall (known in the UK as plasterboard) when the bad hurricane seasons of 2006 and 2007 put pressure on supplies. These products are now being blamed for corrosion to wires and pipes in walls and a host of health problems.
The news that will impact business insurance is that the go-ahead has been given for a class action suit in Florida and other states in the south are expected to follow. This allows one large lawsuit to be heard rather than every individual case being heard, which speeds up the process.
The problem, from a business insurance perspective, is that Chinese manufacturers do not recognise US lawsuits. This means providers of insurance for business in the US are likely to have to bear the brunt of the losses, meaning there'll probably be a bit of a shock for small businesses the next time they get new business insurance quotes.
News brought to you by Insure My Business, providing the UK with a high standard of business insurance.
June 07th 2010