Exporters face serious regulatory risk when exporting to the US
As consumer confidence in Europe is falling many companies are looking to grow their market by focusing on exports. However European companies are often unaware of the risk that this entails especially when they are exporting to the US.
“Labelling and safety requirements for US products are far more intricate and complex than many companies appreciate…without securing expert consultation companies are at high risk” said Pat Drinan director of corporate risks at Ace European Group.
Companies are often guilty of complacency when it comes to exporting to first world countries. “Companies and brokers alike sometimes assume that if their insurance cover is safe enough for their UK domestic market, it will be safe enough for the US. This is far from being the case.”
“It is commonplace for US lawyers to employ a scattergun approach to citing defendants in lawsuits meaning a UK company can find itself tied up in years of litigation when its product might only be peripherally involved” added Drinan.
Risk managers need to do their homework on the national import regulations that apply to their companies. Otherwise their business could be “putting themselves at risk of expensive and drawn-out law suits” added Drinan.
Pat Drinan made these comments at a recent breakfast briefing organised by Ace European.
