INSURANCE AND RISK MANAGEMENT IN U.S. EXPORTS

05 August 2026

For Italian companies, selling products in the United States offers access to one of the world's most attractive markets, but it also entails broader legal and financial exposure than is typically encountered in European transactions. Risk extends well beyond the transportation of goods. It may include non-payment, product liability claims, regulatory compliance, tariff changes, and the costs associated with commercial disputes. Insurance should therefore be viewed as one component of a broader risk management strategy that also includes customer due diligence, technical compliance, and carefully drafted contracts.

A first area of attention concerns the shipment itself. Cargo insurance should be coordinated with the agreed Incoterm and the point at which the risk of loss transfers to the buyer. Simply referring to an Incoterm without specifying the agreed place of delivery or the applicable edition may create uncertainty precisely when a claim arises. Companies should verify that insurance coverage extends throughout the entire transportation process, including temporary storage, intermediate warehouses, and domestic transportation within the United States. It is also worth remembering that, under the Uniform Commercial Code (UCC), a distinction exists between shipment contracts, where the risk transfers upon delivery of the goods to the carrier, and destination contracts, where the seller retains the risk until the goods reach their destination. The parties' intent should therefore be clearly reflected in the contract.

An even more significant issue is product liability. Under U.S. law, a product liability claim may involve multiple parties throughout the supply chain, from the component manufacturer to the distributor, and may be based on negligence, strict liability, or breach of warranty. Liability may also arise from installation, operating instructions, product warnings, or post-sale support. Product liability insurance should therefore be reviewed carefully. Companies should verify, among other things, whether the policy provides coverage for the United States, the applicable trigger of coverage, defense costs, deductibles, aggregate annual limits, and other relevant exclusions or limitations. For products capable of causing multiple claims, the value of a single shipment may not be an appropriate benchmark for determining the policy limit. Businesses should also verify separately whether product recall expenses are covered, as recall costs are not necessarily included within standard commercial general liability insurance.

Recent regulatory developments further reinforce the importance of preventive planning. Beginning July 8, 2026, importers of many consumer products subject to oversight by the U.S. Consumer Product Safety Commission (CPSC) must electronically submit compliance certificate information before products may enter the U.S. market. For goods entering through Foreign Trade Zones, this requirement will take effect on January 8, 2027. Although the importer bears the legal responsibility for compliance, Italian manufacturers should be prepared to provide complete and accurate technical documentation, testing information, and laboratory references. Effective risk management therefore begins well before shipment through proper traceability and documentation.

A second area of concern involves credit risk. During the twelve-month period ending March 31, 2026, business bankruptcy filings in the United States increased by 11.4%, rising from 23,309 to 25,960. Although this does not by itself make the United States a high-risk market, it does suggest that exporters should exercise caution when extending payment terms, particularly to new customers or undercapitalized distributors.

Credit insurance can be an effective risk management tool, provided it is not viewed as an automatic guarantee of payment. Credit insurance policies typically establish credit limits for each debtor, impose reporting obligations, and require strict compliance with deadlines for reporting late payments or filing claims. Sellers may complement insurance coverage with advance payments, documentary letters of credit, or standby letters of credit. In long-term commercial relationships, companies may also consider obtaining a security interest in the goods and their proceeds under Article 9 of the UCC, perfected through the filing of a financing statement, thereby obtaining priority over unsecured creditors.

Another evolving source of risk concerns U.S. trade policy. On February 20, 2026, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. On the same day, however, the Administration introduced a general 10% surcharge under a different statutory authority, effective February 24 for an initial period of 150 days and scheduled to expire on July 24 unless extended by Congress. At the same time, sector-specific measures adopted under Section 232 continued to evolve, including recent changes affecting steel, aluminum, and copper. As a result, customs duties may change between the time an order is placed, production begins, and goods are imported, even where a previous measure has been invalidated.

Commercial contracts should translate this risk assessment into clear and practical contractual provisions. Among other matters, the agreement should specify the applicable Incoterm, the place of delivery, the identity of the importer of record, and the allocation of customs duties and unforeseen additional costs. The parties may also include price adjustment or renegotiation clauses in the event of significant tariff increases. Product specifications, inspection procedures, and notice periods for claims should be carefully defined to avoid inadvertently expanding warranties through catalogs or marketing materials. To the extent permitted under applicable law, contractual remedies may be limited to repair, replacement, or refund, while excluding liability for consequential or indirect damages. Finally, importers and distributors should remain responsible for activities under their control—including storage, product modifications, installation, and local labeling—and maintain insurance coverage consistent with those responsibilities.

The objective is not to eliminate every possible risk, but to ensure that risks are properly identified, appropriately allocated among the parties, and, whenever possible, effectively insured.

Ferretti Firm

The information contained in this article is provided for general informational purposes only and does not constitute, and is not intended to constitute, legal advice or any other form of professional advice. The content does not take into account the specific circumstances of any individual case and should not be relied upon as a basis for making decisions without obtaining appropriate professional advice.