How to Ask Suppliers About Product Liability Insurance for US Pressotherapy Machines?

When our production team ships another batch of pressotherapy systems to the US, one question keeps coming back from buyers: “Does your factory carry product liability insurance ¹?” This concern is valid. A single injury claim in America can cost hundreds of thousands of dollars. Yet many importers never verify if their supplier’s coverage actually protects them.

To ask suppliers about product liability insurance for US pressotherapy machines, request a Certificate of Insurance (COI) naming you as “Additional Insured,” verify policy limits of at least $1M per occurrence, confirm the policy responds to US jurisdiction claims, and check for products-completed operations coverage that addresses post-sale injuries from your devices.

The following sections break down exactly what to ask, what documents to request, and how to spot red flags. Each question addresses a real risk US buyers face when importing compression therapy equipment ² from overseas manufacturers.

How can I verify that a Chinese manufacturer's product liability insurance actually covers my US-based business?

When we receive requests from US distributors to provide insurance documentation ³, we often find they misunderstand what Chinese factories can realistically offer. The harsh reality is that most overseas manufacturers lack coverage that pays US claims.

Verify Chinese manufacturer insurance by requesting the actual policy endorsement (not just a COI), confirming a US-admitted carrier underwrites the policy, checking that the policy explicitly covers US litigation, and having your attorney review the subrogation and jurisdiction clauses to ensure enforceability in American courts.

The Reality of Chinese Factory Insurance

The truth about Chinese manufacturers and US product liability coverage is sobering. In standard manufacturing agreements ⁴ with Chinese companies, product liability insurance that would cover US or European based products liability/government recall claims is generally not available in China. Most Chinese factories carry no insurance at all for this type of claim.

Most Chinese manufacturers refuse to sign contracts requiring insurance. Many of the Chinese manufacturers that did sign ended up ignoring the provisions, stating quite accurately that such insurance is nearly impossible to get in China at any price.

This does not mean verification is pointless. It means you must understand what to look for and where real protection comes from.

What to Request From Your Supplier

Direct Verification Steps

We have seen Chinese companies provide fake policies to try to trick Western companies into believing they have insurance. To avoid this trap:

1. Contact the insurance carrier directly using contact information from their official website (not from the supplier's documents)
2. Verify the policy number, named insured, and coverage dates
3. Confirm the policy includes US jurisdiction coverage
4. Ask if the policy covers imported goods sold in America

Your Best Protection Strategy

If you want to be covered by insurance for US or European based products liability claims, your best solution will usually be to purchase such insurance from a US or European insurer.

Chinese factories rarely carry product liability coverage that pays US claims. Your insurer can't recover costs from overseas manufacturers due to limited subrogation rights ⁷. This reality means US importers often need their own coverage regardless of what suppliers provide.

What specific documentation should I request to prove my pressotherapy machines are fully insured for the US market?

In our experience shipping pressotherapy systems to American buyers, we find that most purchasers request a simple COI and assume they are protected. This is a dangerous assumption. The documentation stack you need goes much deeper.

Request a Certificate of Insurance, the policy’s declarations page, the additional insured endorsement naming your company, proof of products-completed operations coverage, and confirmation the policy uses “occurrence” form (not claims-made). Also request written confirmation that the policy responds to US lawsuits with minimum limits of $1M per occurrence and $2M aggregate.

Understanding the Certificate of Insurance

The standard form ACORD Certificate of Liability Insurance ⁸ specifically states that it is not proof or evidence of actual coverage under the policies identified therein. This language states: "This certificate is issued as a matter of information only and confers no rights upon the certificate holder. This certificate does not affirmatively or negatively amend, extend or alter the coverage afforded by the policies below."

This means simply receiving a COI does nothing to protect you. You must dig deeper.

Essential Documentation Checklist

The Additional Insured Requirement

A certificate holder does not enjoy the benefit of a policyholder's insurance unless they're also named as an additional insured on the COI. Holding a certificate that you are not named on simply shows that the person they received the certificate from has insurance and the correct coverage at that time. To ensure protection from third-party claims, companies should require vendors to add them as an additional insured on the COI.

An additional insured is a person or entity added to an insurance policy and actually protected under that policy. This status allows them to claim and seek protection under the policy's coverage.

Policy Form Matters: Occurrence vs. Claims-Made

There are two basic types of liability policy forms:

Occurrence Form: Covers incidents that happen during the policy period, regardless of when the claim is filed. This is the preferred form for product liability.

Claims-Made Form: Only covers claims made during the active policy period. If the policy lapses, past incidents may not be covered.

For pressotherapy machines that may cause injuries years after sale, occurrence form coverage ⁹ provides far better protection.

Minimum Coverage Limits for US Market

Industry standards suggest these minimum limits for medical/aesthetic devices sold in the US:

Pneumatic compression devices ¹⁰ are approved under the US Food and Drug Administration's 510(k) process for the prevention of DVT. They are classified as Class II devices. Class II medical devices carry higher liability exposure than general consumer goods.

Will the supplier's insurance policy still protect my brand if I choose to private label their equipment?

Our factory handles many private label requests. Customers want to put their own brand on our pressotherapy machines. What they often overlook is how this affects insurance coverage. Private labeling changes the liability equation significantly.

Private labeling typically transfers primary liability to your brand, making the supplier’s insurance less relevant to protecting you. You should secure your own product liability policy, require the supplier to name you as additional insured for manufacturing defects, and include strong indemnification clauses in your OEM agreement that specify each party’s responsibilities for defect-related claims.

How Private Labeling Changes Liability

When you private label a pressotherapy machine, you become the "manufacturer of record" in the eyes of US consumers and courts. Your brand is on the product. Injured parties will sue your company first.

The Importer is always, without exceptions, responsible for ensuring product safety. It's impossible for consumers to obtain compensation from manufacturers or traders in China. It doesn't matter if the supplier deliberately ruined your products, for example by using cheap and substandard materials. You will be on your own when facing any claim.

The Chain of Liability

What Supplier Insurance Actually Covers in Private Label Deals

Even if your supplier has product liability insurance, it typically covers their liability as the manufacturer, not your liability as the brand owner. Coverage for your private label claims requires:

1. Explicit additional insured endorsement naming your company
2. Policy language that covers "products manufactured for" named additional insureds
3. No exclusions for private label, OEM, or white label arrangements
4. Territory coverage that includes the United States

Contract Provisions That Actually Protect You

Beyond insurance, your manufacturing agreement should include:

Indemnification Clause: The supplier agrees to defend and compensate you for claims arising from manufacturing defects, material defects, or quality control failures.

Quality Standards: Clear specifications for the pressotherapy machine with testing requirements.

Recall Cooperation: Supplier participation in any recall actions, including cost sharing.

Inspection Rights: Your ability to audit manufacturing facilities and processes.

The best way to cover yourself for liability arising from the use of your company's products in the United States is to obtain insurance in your company's name for all applicable risks. Manufacturing agreements should be drafted so the Chinese factory is liable for damages caused by defects in your product, including losses incurred due to product liability claims.

Practical Recommendation for Private Label Buyers

In an increasingly globalized market, many businesses are tempted to partner with overseas manufacturers who may offer lower costs or faster turnaround times. However, if that supplier does not carry adequate product liability insurance, you are putting your entire operation at significant risk. Lawsuits for bodily injury, property damage, or defective product claims can be financially devastating.

How do I confirm the insurance coverage is sufficient to handle potential claims from my downstream salon customers?

When we discuss product support with our US distributors, they often ask about protecting their salon customers. This question reflects a sophisticated understanding of the liability chain. Salons using your pressotherapy machines can face claims from their clients—and those claims flow back up to you.

Confirm sufficient coverage by verifying policy limits meet or exceed $1M per occurrence and $2M aggregate, ensuring products-completed operations coverage is included without sub-limits, checking that the policy covers the entire distribution chain, and requiring proof that coverage continues for at least 3-5 years after product sale to address latent injury claims.

Understanding the Downstream Liability Flow

When a salon client experiences an adverse reaction from a pressotherapy treatment, claims typically flow this way:

Client → Salon → Distributor → Importer → Manufacturer

Each party in the chain may be named in a lawsuit. Your insurance coverage must account for this reality.

Coverage Components for Downstream Protection

Evaluating Whether Limits Are Sufficient

A product liability insurance can protect your business against personal injury or property damage claims. If you sell a product that, for any reason, harms a customer or damages property, the insurance covers legal and court fees. Injury or damage claims can cost hundreds of thousands of dollars.

For pressotherapy machines, common injury claims include:

• Compression-related vascular injuries
• Skin irritation or pressure ulcers
• Allergic reactions to suit materials
• Electrical malfunction injuries

Consider that defense costs alone can reach $50,000-$100,000 per claim, even for claims that are ultimately dismissed. Settlement values for serious injuries routinely exceed $250,000.

Questions to Ask About Downstream Coverage

Ask your supplier (or your own insurer) these specific questions:

1. "Does the products-completed operations coverage apply to injuries occurring during normal use by end consumers?"

2. "Are there sub-limits for specific injury types that might reduce effective coverage?"

3. "Does the policy defend and indemnify downstream distributors and retailers?"

4. "What is the tail coverage period after policy cancellation?"

5. "Are there exclusions for professional use in aesthetic or medical settings?"

Extended Reporting Period (Tail Coverage)

"Products – Comp/Op Agg" means "Products Liability or Completed Operations Aggregate", and is the most that the policy will pay for all claims arising out of the Insured's defective products or work. It is very common for construction projects to require extended Completed Operations Insurance for a period from one to three years following the completion of the work.

For medical devices like pressotherapy machines, injuries may not manifest until months or years after treatment. Your coverage should extend beyond the sale date.

Coordinating Coverage Across the Distribution Chain

Effective downstream protection requires coordination:

Your Coverage: Primary policy covering products liability for machines you import and distribute.

Distributor Requirements: Require your distributors to carry their own general liability and products liability coverage.

Salon Requirements: Many distributors require salons to acknowledge product risks and carry professional liability insurance.

Contractual Transfer: Use clear contracts that define each party's responsibility and insurance requirements.

Misunderstandings regarding the differences between policyholders, certificate holders, and additional insureds on commercial general liability policies can lead to costly litigation and failed loss transfer in the event of an insurance claim. While policyholders are entities that purchased the policy from a provider, certificate holders possess proof of insurance on CGL policies. Additional insureds are parties other than the initial policyholders that coverage has been extended to.

Conclusion

Verifying product liability insurance for US pressotherapy machines requires more than accepting a simple certificate. Request actual policy endorsements, confirm additional insured status, verify US jurisdiction coverage, and understand that most Chinese suppliers cannot provide meaningful protection. Your best strategy combines supplier documentation with your own US-based coverage.

Footnotes

1. Defines product liability insurance and its purpose. ↩︎

2. Explains what compression therapy machines are and their use. ↩︎

3. Details essential insurance policy documents for businesses. ↩︎

4. Outlines the legal framework and importance of manufacturing agreements. ↩︎

5. Defines the term ‘additional insured’ in an insurance policy. ↩︎

6. Defines what an insurance carrier is in the insurance industry. ↩︎

7. Authoritative legal explanation of subrogation as a doctrine and its application in insurance. ↩︎

8. Provides official information about ACORD Certificates of Insurance. ↩︎

9. Explains how occurrence form policies provide coverage. ↩︎

10. Describes pneumatic compression devices and their FDA approval for DVT prevention. ↩︎