Our Distributor Warranty Insurance is designed specifically to meet the needs of businesses that distribute mechanical and electrical products through dealers/retailers.

Where distributors need to ensure their products meet the requirements of the Consumer Rights Act 2015, or the end user requires the goods to have a certain lifespan, there is an ongoing liability to the dealer/retailer. 

Rather than create a provision in the balance sheet for defect/breakdown claims or risk their balance sheet with more claims that expected, distributors can purchase insurance under a Contractual Liability Insurance Policy (CLIP) to cover their ongoing liability.

Exclusions are tailored according to the nature of the products being supplied by the distributor.

Typical exclusions include accidental damage, theft, epidemic failure of components and claims occurring within a certain number of days of the product being supplied to the end user.

Our Distributor Warranty Insurance policyholders can declare their products to us using one of the following:

Our realtime Application Programming Interface

A regular data extract file

A purpose-built online portal

For Distributors that have their own repair capability, or where the dealers/retailers manage the repairs, claims can be submitted online through a bespoke claims application.

Our bespoke claims applications capture the information required to assess the claim quickly and allow for the upload of supporting documents including engineer’s reports and invoices/credit notes.

Claims are assessed and approved in the agreed timeframe and settled by Specialty Risks on behalf of the insurer.

Distributors have a single CLIP which their supplied products attach to.

CLIPs are usually provided on an annual basis.

We invoice the Distributor at regular intervals and payment terms are subject to agreement with the insurer.