New start-up business owners might consider that outsourcing certain manufacturing processes to overseas countries will save them money. While this may be the case, it is worth investigating the possible consequences when it comes to a problem with the manufacturer’s end product when it arrives back in the US. Your business should have general liability insurance California in place to cover possible damages, but how confident are you that you would have recourse from an overseas manufacturer?
Outsourcing manufacturing overseas can sometimes be a risky proposition. Not only do you have to rely on the company involved, but you have to acknowledge the risk that the country’s political and judicial system may not treat claims against them as fairly as may be the case in the United States. Having manufacturing outsourced overseas could be a sensitive subject for many workers in the US and the decision to move that part of your operation offshore should not just be taken on monetary terms alone.
Whatever you decide, it would be prudent to make sure you are fully aware of the ramifications should something go awry. Speak to your agent about general liability insurance California and other coverage such as product liability that you may need. Find out just where you stand if a defective-product situation arises at some time during the relationship with the overseas company.