Australian Businesses Expanding to the U.S.? Having the right Liability coverage is critically important.
- G'day Gateway
- Nov 16
- 2 min read
By Damian Hicks, Director, HKS Insurance Brokers
Imagine an Australian manufacturer of outdoor sporting equipment, like bicycles or kayaks, planning to export and sell products in the U.S.
Commonly, their Australian insurer might cover general product liability in Australia, but explicitly excludes U.S. liability because the U.S. market has:
Higher litigation risk – personal injury lawsuits are common.
Higher damage awards – even minor claims can result in multi-million-dollar settlements, due to punitive, exemplary and/or statutorily enhanced damages.
Different legal frameworks – liability laws vary by state and often favor plaintiffs.
As a result, the Australian insurer will likely refuse coverage for U.S. sales. Without proper U.S. liability insurance, the manufacturer could face massive exposure if a U.S. customer is injured or sued over product defects. Furthermore if general product liability is provided by an Australian insurer - these policies may fall short given they exclude damages awards beyond compensatory i.e., punitive, exemplary and/or statutorily enhanced damages.
This is exactly the kind of situation HKS specialises in, helping Australian businesses place liability coverage with U.S.-licensed insurers so they can operate safely in the American market.
Located in Los Angeles, CA, we help navigate the complex cross-border insurance landscape, and as a member of ISU Steadfast we work with multiple U.S. insurers & wholesalers to find solutions tailored to your business needs.
Whether you’re exporting goods or establishing operations in the U.S., we make insurance placement straightforward — so you can focus on growing your business with confidence.
Reach out to see how we can help your business confidently navigate the U.S. insurance market:
HKS is an Australian-owned and operated insurance brokerage based in the U.S., specialising in helping Australian businesses secure the right insurance coverage in the U.S.
Get in touch with the author:
Damian Hicks
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