It’s time to ask: Are your supplier’s LED lights insured?
In June 2016, after three separate incidents involving its cabinets, IKEA decided to recall more than 29 million sets of a line of its most popular cabinet in the US and Canada. North America has legislation which requires all products to be completely safe, as a result of a design flaw, Ikea were forced to recall this product. North America has stringent and developed consumer safety and personal property laws and regulations. The demand for safe, reliable consumer goods has begun to increase globally in the last decade.
Consequently all companies not only need to supply good quality products, but also undertake more responsible business practices. This is necessary for development competitiveness.
Sometimes unexpected defective products might cause the user bodily harm or economic loss from property damage. Consequently wholesalers and contractors find themselves responsible for facing legal claims from the unreliable products they may sell/use/install. Many companies face bankruptcy because of settlement costs. It is difficult to place legal responsibility on foreign companies for bad quality products. LED lighting products with 110 v to 220 v AC power supplies that have low skilled wiring and poor quality drivers are at a higher risk of short circuit, fire, electrical arcing. This can lead to serious personal and property damage.
This unfortunate scenario came true for a community center in East Valley, Arizona, USA. An uninsured LED product caused extensive damage after catching fire. This would have shut the center for months; it came to the local community to save them from bankruptcy. Therefore sourcing products from manufacturers with Product Liability Insurance (PLI) from reputable sources is especially important to lower risk.
A reputable source: AIG
American Insurance Group (AIG) is one of the world’s biggest insurance companies, providing PLI for 88 million in a 130 countries. This insurance is recognition of the suppliers product quality; products must have strict QC processes, UL, cUL certifications as well as meet the qualification(s) for insurance. Only strong and reputable companies can pass the requirements of obtaining AIG Product Liability Insurance.
On the market majority of companies claim to provide 5-10 years, but often companies go bankrupt before the warranties can be claimed. Then distributors face a dilemma. With uninsured products, five years warranties are undependable, but it is different when LED producers have PLI with AIG. They are the world’s largest non-life insurer, have almost a century long history and A+ credit rating. With Product liability insurance a five years warranty period means a five year warranty period.
China is the world’s largest LED producer, several thousand production and sales companies operate here. However with less than 1% of the companies buying insurance for their products; Senior LED has become a proven leader in the commercial lighting industry. We provide AIG’s PLI for all our LED lighting products. As a result our partners have an additional safeguard they will not feel the punishment of manufacturing defects.
We at Senior LED, together with AIG are proud to be providing insured high efficiency LED lighting products. We look forward to cooperating with more partners in the future.