I have learned that asking about insurance protection can save me from big problems later.
Your business is protected if the Product Liability Insurance policy clearly names your company as the insured and includes coverage for undercarriage parts. The policy should cover manufacturing defects, design flaws, and property damage in the regions you sell, and be valid during active transactions.
It may surprise you, but many suppliers cannot answer this directly, so I always check the insurance certificate myself.
Can you provide a copy of your Product Liability Insurance certificate?
I always ask for the insurance certificate because words alone are not enough.
You can verify coverage by reviewing the Certificate of Insurance, making sure it is still valid, includes clear coverage limits, and lists undercarriage parts under the insured product category. This is the fastest way to confirm policy compliance.
Why the certificate matters
Without a valid copy, you cannot prove that the supplier's policy covers your orders.
A certificate shows:
- Policy Number
- Expiry Date
- Insured products
- Coverage Limits
- Underwriter Info
Step-by-step process to check:
| Step | What to check | Why it matters |
|---|---|---|
| 1 | Expiry date | Outdated policy gives zero protection |
| 2 | Product list | Must include "undercarriage parts" |
| 3 | Coverage limit | Ensure it fits possible claims |
| 4 | Jurisdiction | Must cover your market |
| 5 | Underwriter name | Confirms legitimacy |
Checking these points helps avoid surprises.
For example, I once found a supplier whose document expired six months ago. If I had not checked, I would have been unprotected.
What is the coverage limit (in USD) for your insurance policy?
First thing I think about is how much damage a defect can cause.
Coverage limits show how much the insurer will pay for a claim. For undercarriage parts, make sure the limit in USD is enough to cover worst-case damage, including machine repairs and downtime costs.
How to evaluate a coverage limit
This matters because a limit that is too low will not protect you in a serious case.
Many buyers forget that a failed undercarriage part can damage the whole machine.
Common coverage limit examples:
| Limit Type | Typical USD Value | Risk Level if low |
|---|---|---|
| Per Occurrence | $1,000,000 | High risk if < $500k |
| Aggregate Annual | $2,000,000 | High risk if < $1M |
| Equipment Damage | $500,000 | Very high if < $250k |
My own experience
I once had a part failure in a bulldozer that cost almost $400,000 in repair and downtime.
If the coverage limit had been only $300,000, I would have carried $100,000 of loss.
Does your insurance cover incidents that happen in my market (USA/Brazil)?
I never assume that coverage is worldwide.
Insurance should list the geographic markets it protects. If you sell in the USA or Brazil, check that these regions appear in the policy terms, or ask the underwriter to confirm in writing.
Why market coverage is vital
Some supplier policies only protect claims made in their home country.
That leaves you exposed when selling abroad.
Key questions to ask:
| Question | Reason |
|---|---|
| Does the policy list my country? | Formal inclusion is mandatory |
| Does it cover foreign claims? | Avoid claim denial |
| Does it require local compliance? | Know rules before selling |
An important case
I once checked a supplier’s policy that only covered China.
If something failed in Brazil, there was no payout.
I now confirm coverage before any contract.
Who is the underwriter for your liability insurance?
The underwriter's name 1 2 tells me if the insurance is trustworthy.
Underwriters control how claims are handled and paid. A major, reputable underwriter means higher reliability. You can verify their authority through national insurance registers or market reputation.
Why the underwriter matters
The policy is only as good as the company behind it.
Unknown underwriters may avoid paying complex claims.
Underwriter check table:
| Check Step | What to Do |
|---|---|
| Verify license | Search them in official database |
| Review claim record | Check past payouts |
| Check global presence | See if they work in your market |
Real-world impact
A friend of mine worked with a supplier whose underwriter had no office in the USA.
When they tried to file a claim, there was a two-month delay, and costs piled up.
Conclusion
Insurance for undercarriage parts 3 4 works only when coverage, limits, geography, and underwriter quality match your needs.
Footnotes
1. Reputable insurer offering global underwriting services. ↩︎ 5
2. Understanding undercarriage parts in machinery. ↩︎ 6