Manufacturers and wholesale distributors make, import or sell products that other businesses and consumers rely on. That can bring product liability, recalls and federal safety rules, alongside plant and warehouse risks such as machinery, forklifts, combustible dust and large stocks of inventory.

This page explains, as education, what owners of manufacturing, import and wholesale distribution businesses in North Central and Northeast Florida should understand about their insurance.

What manufacturers and wholesalers deal with day to day

  • Product liability. A product that breaks, fails or is blamed for an injury can lead to claims against the company that made it and the companies that sold it.
  • Federal safety rules. Many consumer products must meet federal safety standards, and companies that make, import or sell them can have a duty to report certain product hazards to the government.
  • Recalls. Pulling a product from the market is expensive, and recall costs are usually not covered by general liability.
  • Imported products. If you import, you can be named in product claims along with the foreign manufacturer, and you may be the easiest party for an injured person to reach.
  • Plant hazards. Production machinery, combustible dust and processes that use heat, chemicals or finishes.
  • Warehouses and inventory. Forklifts, high stacks, fire and inventory values that change through the year.

If you supply lumber, block or other building materials to contractors, our page for construction material suppliers covers deliveries to job sites, contractor contracts and lien rules.

Typical claims for manufacturers and wholesalers

Without quoting statistics, manufacturers and wholesalers see product liability claims from injuries, recall costs, warehouse fires and storm damage to inventory. On the workers’ comp side, claims come from machinery, lifting and forklift incidents. Combustible dust can turn a small fire into a much larger one.

Coverage at a glance

Coverage Why it matters here Learn more
General liability, including products Injury or damage caused by products you make, import or sell, depending on the policy General liability
Product recall The cost of pulling and replacing products, which general liability usually excludes Ask us about product recall
Commercial property and inventory Plant, warehouse, machinery and inventory that changes through the year Business insurance
Business income Income lost while a covered loss is repaired Ask us about business income
Workers’ compensation Required with four employees in most cases Workers’ comp
Inland marine and cargo Goods in transit to customers or from ports Ask us about cargo coverage
Commercial auto Delivery trucks and vans Commercial auto
Cyber Online orders, customer data and production systems Cyber
Employment practices liability Claims from employees about hiring, firing or harassment EPLI

Customer contracts and vendor requirements

Retailers and distributors often require their suppliers to carry product liability at set limits, name them as additional insureds through a vendor’s endorsement and sign indemnity agreements. Read those vendor agreements carefully. If a customer asks for something your policy can’t do, find out before you sign. A certificate is for information only. It doesn’t change or add coverage.

Workers’ comp for your team

Most manufacturers and wholesalers are not construction businesses under Florida’s workers’ comp law, so the general rule applies: coverage is required once you have four or more employees, full- or part-time, including corporate officers or LLC members who haven’t filed an exemption. Many owners buy it sooner, because an uninsured injury can still turn into a lawsuit. If some of your people do construction work, such as installing what you sell, Florida can apply the one-employee construction rule to your whole business, so tell us about it.

Comp premium is an estimate based on payroll by job type, or class code. After the policy ends, the insurance company audits the real payroll. Florida’s audit rules require auditors to look at payments to employees, subcontractors and independent contractors, so keep a certificate of insurance on file for anyone you pay who isn’t on your payroll.

Report injuries right away. Florida requires the employer to report an injury to its carrier within 7 days after learning of it. More on our workers’ compensation page.

Your experience mod

Once your workers’ comp premium is large enough, NCCI calculates an experience mod for your business from about three years of payroll and claims, leaving out the most recent year. 1.00 is average. Some large customers ask for it when choosing vendors. Prompt injury reporting, light duty, correct class codes and checking the worksheet each year all help keep it accurate.

Federal safety rules to know

The Consumer Product Safety Commission sets safety rules for many consumer products. Domestic manufacturers and importers of products covered by those rules generally must certify in writing, based on testing, that the product complies. Children’s products have their own testing and certification rules. Under federal law, manufacturers, importers, distributors and retailers of consumer products must report to the Commission right away, generally within 24 hours, when they get information that reasonably supports the conclusion that a product has a defect that could create a substantial risk of injury or creates an unreasonable risk of serious injury or death. The same duty applies when a product fails to meet a safety rule. OSHA has guidance on machine guarding, lockout, forklifts and combustible dust, which can come from wood, metal, plastics, food products and many other materials.

Practical risk management steps

  • Keep test reports and certificates of compliance for the products you make or import
  • Have a written recall plan before you need one
  • Collect dust at the source and keep housekeeping on a schedule
  • Guard machinery and lock out equipment before maintenance
  • Train and evaluate forklift operators
  • Report inventory values accurately, especially at peak season

Questions to ask before you renew

  • Do my product liability limits meet what my customers require?
  • Do I have product recall coverage?
  • Are my inventory limits right for peak season?
  • Is cargo or transit coverage in place for imports and deliveries?
  • Are my class codes right for plant, warehouse, sales and office staff?
  • What is my experience mod, if I have one?

Frequently asked questions

Does general liability cover product recalls?

Usually not. Product recall coverage is a separate policy or endorsement.

Do federal product safety rules apply to my business?

It depends on what you make or sell. The Consumer Product Safety Commission oversees many consumer products. Under federal law, domestic manufacturers and importers may need to certify, based on testing, that covered products comply, and manufacturers, importers, distributors and retailers may need to report certain product hazards. Food, drugs, cosmetics and motor vehicles fall under other federal agencies.

If I import products, can I be liable for defects?

Importers and sellers are often named in product claims along with manufacturers. Products coverage is part of most general liability policies.

Is dust really a fire hazard?

OSHA treats many combustible dusts, including wood, metal, plastic and food dusts, as fire and explosion hazards.

How many employees before I need workers’ comp?

Most manufacturing and wholesale businesses follow Florida’s four-employee rule. If your team installs what you make or sell, at a job site or in a customer’s building, that work may count as construction, where one employee is enough.

What do retailers usually ask suppliers for?

Commonly product liability at set limits, a vendor’s endorsement naming them as additional insureds and an indemnity agreement.

Sources

General information, not legal or coverage advice. Coverage depends on the policy issued, its terms and underwriting, and contract requirements depend on the contract you sign. Check licensing and safety rules with the agency that enforces them.

McGriff-Williams Insurance is an independent insurance agency in Gainesville, in business since 1983 and licensed in Florida. We’re at 3501 W University Ave, Gainesville, FL 32607. Questions: (352) 371-7977, Monday to Friday, 9 a.m. to 5 p.m.

Last updated October 31, 2026