{"id":13848,"date":"2025-10-09T11:37:48","date_gmt":"2025-10-09T19:37:48","guid":{"rendered":"https:\/\/www.rangeme.com\/blog\/?p=13848"},"modified":"2025-10-16T07:42:51","modified_gmt":"2025-10-16T15:42:51","slug":"cross-border-insurance-for-cpg-brands-what-it-is-why-you-need-it","status":"publish","type":"post","link":"https:\/\/www.rangeme.com\/blog\/cross-border-insurance-for-cpg-brands-what-it-is-why-you-need-it\/","title":{"rendered":"Cross-Border Insurance for CPG Brands: What It is & Why You Need It"},"content":{"rendered":"\n
Whether you\u2019re based in the U.S. or in Canada, as a CPG brand on RangeMe, it\u2019s a natural next step to expand your sales across the border. With any form of business growth, one thing to consider is your insurance coverage. Insurance is a crucial tool for protecting your hard work and becoming a verified seller for marketplaces and distributors; cross-border insurance helps continue that while you scale your product availability. <\/p>\n\n\n\n
We\u2019ll break down everything you need to know about cross-border insurance – the what, why, and how.<\/p>\n\n\n\n
What is Cross-Border Insurance?\u00a0<\/strong><\/h2>\n\n\n\n
If you\u2019re based in the U.S. and want to start selling in Canada \u2013 or vice versa, if you\u2019re based in Canada and want to start selling in the U.S. – you need cross-border insurance.\u00a0<\/p>\n\n\n\n
The two main qualifications of cross-border insurance are:\u00a0<\/h3>\n\n\n
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1) Your insurance provider (or a reinsurer\/insurance partner) should be licensed to operate and sell insurance in the geography you\u2019re looking to make revenue in. <\/p>\n\n\n\n
So for example, if your company is based in the US, your insurance provider should be licensed in the U.S. to issue you a policy. They don\u2019t have to physically be in the U.S. so long as they have a license to sell there. This applies for Canadian businesses too.\u00a0
Another avenue to explore is an insurance provider from your home country that works with an eligible reinsurer or admitted partner for your foreign revenue coverage. Using the same previous example, a U.S. insurer licensed in the US can issue a policy to you that covers Canadian sales \u2013 without being licensed in Canada themselves \u2013 by using an eligible reinsurer or admitted partner for that portion of CAD sales.<\/p>\n\n\n\n
2) Your policy must explicitly include coverage for:<\/p>\n\n\n\n
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The revenue for the foreign jurisdiction you\u2019re looking to sell in<\/li>\n\n\n\n
Claims arising from products sold into the foreign market, including liability for incidents occurring there.<\/li>\n<\/ul>\n\n\n\n
If your company is based in the U.S. and you\u2019re looking to sell in Canada, your insurance policy needs to be able to provide coverage for the sales you make in CAD and for any claims that could occur \u2013 like if your product causes an allergic reaction for a Canadian consumer. Ideally, this policy could also insure the sales you make at home in U.S. revenue too.<\/p>\n\n\n\n
Why Do You Need Cross-Border Insurance?\u00a0<\/strong><\/h2>\n\n\n\n
Having cross-border coverage not only means your business is protected in other geographies but you\u2019ll also be verified to sell with satisfied contractual requirements on other online marketplaces or with other distributors. Many marketplaces that service both the U.S. and Canada only allow access if you have proof of insurance (a Certificate of Insurance or COI) showing you\u2019re covered for both U.S. & Canadian sales. Cross-border insurance is an inevitable step in the logistics of expanding your geography. <\/p>\n\n\n\n
How to Get Cross-Border Insurance:<\/strong><\/h2>\n\n\n\n
We won\u2019t sugarcoat it; as simple as it seems, cross-border insurance is a unique coverage that can be trickier to access. You may have trouble finding a provider or you might be looking at higher insurance premiums. <\/p>\n\n\n\n
Some tips to help you find cross-border insurance that\u2019s tailored to your needs:\u00a0<\/h3>\n\n\n\n
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Look for insurance providers who advertise their expertise in cross-border coverage \u2013 specifically those who are familiar with the U.S. and Canada. They\u2019ll likely be more knowledgeable about requirements, coverages best suited for the kinds of products you\u2019re selling, certificates, and any other documents.\u00a0<\/li>\n\n\n\n
The cost of cross-border insurance can vary based on your revenue, geography, payroll, the types of products being sold, and more. If you\u2019re not a fan of the first quote you get, it doesn\u2019t hurt to shop around and review your options.<\/li>\n\n\n\n
If you need cross-border coverage to meet the requirements of a marketplace or distributor, double check your Certificate of Insurance\/COI (a.k.a your proof of insurance document) that everything is correct before you submit to prevent denials.\u00a0<\/li>\n<\/ul>\n\n\n\n
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