Businesses that deal in third-party transportation or logistics must deal with complicated issues on a daily basis. Besides having to remain aware of economic fluctuations on a world-wide scale, it also is the responsibility of transportation intermediaries to keep up with and respond to new and existing regulations imposed upon them. Many protect themselves with FDA Re-Inspection Fee Coverage.
The United States FDA charges a re-inspection fee to cover its own costs anytime an overseas facility fails to pass its initial inspection. Reasons for failure can include any number violations that potentially make the products manufactured there unsafe for consumers once they are imported. In theory, the client or owner of the facility at fault should of course pay this expense. In the real world, however, many clients cannot or simply refuse to pay. In these cases, you, the U.S. agent, can be held liable. This expense can be especially devastating to small businesses, who are held fully accountable and not charged a reduced rate based on their size or income.
Luckily, you can protect your business with FDA Re-Inspection Fee Coverage, which covers the cost of the hefty fee incurred in the case that you are found liable. This type of specialized insurance is not available everywhere. Because cargo insurance and transportation liability are extremely complicated issues, they are best handled by insurance providers who specialize in meeting the needs of transportation intermediaries and providers of logistics services.