The cross-border e-commerce industry in Beilun district, Ningbo, has received a significant boost with the introduction of comprehensive quality insurance coverage, according to Ningbo Daily.

Beilun authorities recently partnered with the Ningbo Branch of China Life Property and Casualty Insurance Co Ltd to launch a "Quality Insurance" program that fully insures all cross-border e-commerce businesses operating in the district.

This innovative insurance scheme, as a type of government-backed liability insurance, aims to mitigate operational and consumer risks associated with cross-border trade. It offers robust protection to both operators and consumers, safeguarding their legitimate interests.

The program serves as an upgrade to the previous "Comprehensive Insurance for Food from Central and Eastern European Countries," expanding its scope to cover not just food from CEE countries but also global commodities.

This upgraded insurance coverage provides up to 6 million yuan ($827,470) for each incident, with a limit of 300,000 yuan per person. The cumulative annual compensation limit stands at 60 million yuan, significantly enhancing the insurance's effectiveness and reach.

"If a cross-border product fails to meet Chinese standards due to national differences and needs to be destroyed, the insurance company will compensate the seller," said an official of the Beilun District Bureau for Market Regulation. "Similarly, if a consumer encounters a defect with a cross-border product, the insurance will compensate them."

In 2023, the bureau further strengthened consumer protection by insuring 300 local enterprises involved in importing food from CEE countries.

Ningbo's cross-border e-commerce imports and exports reached 230.18 billion yuan in 2023, representing a year-on-year increase of 14.8 percent, leading the nation. Ningbo has also maintained its top spot for bonded imports of cross-border online shopping for the past six years.

With the new insurance program, Beilun aims to further solidify Ningbo's position as a leading hub for cross-border e-commerce in China.