WHOLESALE/ RETAIL/ DISTRIBUTORS

U.S. wholesalers and distributors often import products from overseas manufacturers. Retailers and wholesalers with multiple locations face a wide range of third-party risks associated with their services. When a third party is injured or suffers property damage, liability extends to everyone in the distribution channel from the manufacturer to the retailer.

Foreign entities often lack enough product liability insurance coverage, limits or excludes operations in the United States or Canada and often have no assets in United States, making them less desirable targets to plaintiff attorneys. When the U.S. distributor/ wholesale operation is the last stop in the reverse chain of distribution, they essentially become the manufacturer in product liability lawsuits. Even groundless suits are extremely costly to defend. Obtaining product liability insurance helps to transfer the risks and defense costs to the insurer.  A vendors additional insured endorsement may not help if the foreign issued policy does not cover United States or Canada operations.  This is critical to minimize the financial impact of huge verdicts or settlements.