Recommended Reading: 3 Product Liability Concerns for Distributors

Product and service liability is a growing issue for wholesaler-distributors.
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In the Aug. 25, 2013, issue of MDM Premium, Associate Editor Jenel Stelton-Holtmeier looked at the industry’s efforts to fight counterfeits across product lines.

In the most recent issue, we look at a related topic: product liability. While there has been some success in mitigating distributors’ liability, distributors still need to consider insurance or paying closer attention to contracts with both manufacturers and customers.

Here are three of the liability concerns outlined in the current issue that distributors should keep in mind:

1. The push of liability up the supply chain has accelerated, according to many watching the trend. “Ten years ago, I would very seldom see indemnity agreements with a contract to a middle man laying out the details of everyone’s liability and what people should have for insurance. … I now see that all the time,” says William Marler of law firm Marler Clark.

2. Distributors that are adding or growing their services portfolio may want to consider communicating that to their insurance companies; they also may want to consider general liability insurance because product liability is only part of the equation.

3. Overseas sourcing may increase the likelihood a distributor is held liable. A product importer can in some cases take on the liability of a manufacturer, according to Chris Van Leeuwen, vice president of sales for liability insurance company Veracity Insurance Solutions.

Read more about product liability and distributors in the latest issue of MDM Premium:

If you missed the article on counterfeits in the supply chain, you can read that here: The Counterfeit Challenge 

Other articles featured in the most recent issue of MDM Premium:

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