The Commercial Line

When Distributors Face Larger Liabilities

For an agent or an underwriter, a distributor is not typically a difficult risk to evaluate. The client buys products from a manufacturer or another distributor, stores them in a warehouse, and re-sells them to retailers. If there is a U.S. product liability claim, normally the distributor will bring the manufacturer of the product into the case as a defendant (if the plaintiff has not already done so), and claim indemnity from the manufacturer as the party at fault.

Distributors: Insurance for Perishable Goods

Distributors are typically merchants or intermediaries that sell products to industrial and commercial users, as well as resale/retail stores and dealers. Although all distributors might fit this basic description, their actual operations can be very unique.