Insurance requirements for selling through distributors
Distributors and buying groups require the brands they carry to hold general and product liability insurance and to name the distributor as additional insured, often at higher limits than a single retailer because they move volume. A Certificate of Insurance with $1,000,000 to $2,000,000 in limits is common.
Get a free quoteWhat distributors typically require
Requirement
Typical ask
Coverage
General and product liability
Limit
$1,000,000 to $2,000,000, sometimes higher
Additional insured
The distributor and its customers in some cases
Timing
Before onboarding as a supplier
Proof
Certificate of Insurance, kept current
Why higher limits
A distributor spreads your product across many retailers, multiplying the number of end users and the potential exposure from a single defect. That is why distributors often require higher limits, and sometimes an umbrella, than a single store.
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Questions
FAQ.
What insurance do distributors require?+
General and product liability, commonly $1M to $2M, naming the distributor as additional insured on a Certificate of Insurance. Because they move volume, distributors often want higher limits than a single retailer.
Related
General information, not insurance advice. Sources: Insurance Information Institute. Reviewed 2026-07-01.