Manufacturing and distribution risks have changed dramatically over the past decade. Global supply chains, e-commerce, offshore production and shifting legal responsibilities have all reshaped the liability landscape, and insurance brokers are often left navigating the complexity in real time.
For brokers, these risks rarely fit neatly into standard underwriting boxes. Products may be designed in one country, manufactured in another, sold online, and delivered into multiple jurisdictions, each with its own legal and regulatory expectations.
At York Underwriting, manufacturing and distribution is a core focus area. We work closely with insurance brokers to help them understand exposures, manage uncertainty and place cover with confidence, even when your clients risk profile is layered or unconventional.
This is how we support brokers operating in this evolving sector.
Why Manufacturing & Distribution Liability Is Different
From an underwriting perspective, manufacturing and distribution risks are no longer confined to factory floors or warehouse operations. The way products are made, sold and delivered today introduces a range of liability considerations that didn’t exist (or weren’t as pronounced) even 10 or 20 years ago.
One of the biggest shifts has been globalisation. Many Australian businesses now distribute products that are manufactured offshore, often in jurisdictions with very different regulatory standards and insurance practices. In some cases, overseas manufacturers may not carry liability insurance at all.
Australian law responds to this by shifting responsibility. If a product is imported and sold locally, the distributor can be treated as the “deemed manufacturer”, even if they had no direct involvement in the production process.
That means distributors can be held liable for defects, failures or injuries caused by a product they didn’t physically manufacture.
Craig Elliott, Managing Director of York Underwriting, explains:
“From a liability perspective, it’s not enough to say ‘we didn’t manufacture it’. If you’ve imported and sold the product in Australia, the law can treat you as if you did.”
This creates underwriting complexity. Assessing the risk often means understanding overseas manufacturing processes, quality controls, supply contracts and whether any upstream insurance exists. Information that isn’t always readily available to brokers or their clients.
Layer in online sales models, drop-shipping, and cross-border customers, and the exposure can quickly extend beyond Australia into jurisdictions like the United States, where liability claims can be significantly more severe.
The Impact of E-Commerce and Boutique Manufacturing
E-commerce has fundamentally changed distribution risk. Products can now be sold globally with minimal physical handling by the Australian business itself.
In some cases, an Australian distributor may never touch the product at all as it is shipped directly from the overseas manufacturer to the end customer. Yet if a claim arises, the liability can still fall back on the Australian policy.
At the same time, York has seen the rise of boutique manufacturers with small operators producing bespoke or niche products, sometimes from home-based environments or small facilities.
These businesses can scale quickly through platforms like Amazon and eBay, but they often don’t have the formal quality control frameworks, accreditations or documentation that larger manufacturers maintain.
From an underwriting perspective, this doesn’t make the risk uninsurable, but it does change how it needs to be assessed.
“What we look at is the nature of the product itself,” says Craig. “Lower-risk products with limited injury potential are very different to high-risk items like heaters, power tools or e-bikes.”
Understanding how the product is made, tested and sold becomes central to understanding the liability exposure.
The Challenges Insurance Brokers Face
Brokers placing manufacturing and distribution risks often tell us the same thing: the biggest challenge isn’t the client, it’s the uncertainty around information.
Common issues include:
- Gaps in supply chain knowledge, particularly where manufacturing occurs offshore
- Limited visibility over quality control and testing processes
- Uncertainty around whether overseas manufacturers carry their own insurance
- Inconsistent information requirements across insurers
- Time pressure, with multiple markets asking different questions for the same risk
When information is missing, underwriters are forced to assume worst-case scenarios. That can lead to higher premiums, restrictive terms, increased excesses, or in some cases, declinature.
“If underwriters don’t have the information, they either won’t quote or they’ll price defensively,” Craig explains. “That doesn’t always reflect the true risk but can reflect uncertainty.”
For brokers juggling multiple renewals and deadlines, chasing fragmented information across the supply chain can be time-consuming and frustrating.
York’s Approach to Manufacturing & Distribution Risks
At York Underwriting, our role is to reduce friction for brokers, not add to it.
We approach manufacturing and distribution risks with a clear focus on collaboration, consistency and practical underwriting insight. Our proposal forms are designed specifically for this sector, allowing brokers to gather the information we know matters most, without unnecessary duplication.
If information isn’t available, we don’t stop at “no”. We work with brokers to explore alternatives, whether that’s reviewing manufacturer documentation, researching comparable products, or assessing risks using experience-based benchmarks.
“Our job is to help bridge the gap,” says Craig. “If the client doesn’t have every answer, we’ll work with the broker to find a sensible way forward.”
Key elements of our approach include:
- Direct access to experienced underwriters
Brokers speak directly with decision-makers who understand manufacturing and distribution risks in depth. - Clear appetite and early feedback
We provide upfront guidance on whether a risk fits, saving brokers time and uncertainty. - Sector-specific insight
From offshore manufacturing to online distribution models, we understand how modern supply chains operate. - Engagement beyond the quote
We stay involved through policy issuance, mid-term changes and claims support.
Our focus isn’t on writing every risk but rather on delivering the best outcome for brokers and their clients, whether that outcome ultimately sits with York Underwriting or not.
Managing Complexity Without Making Assumptions
Manufacturing and distribution risks often involve multiple contracts, platforms and counterparties.
Online marketplaces, for example, commonly require sellers to agree to contractual terms that shift liability back to the distributor, even where the platform facilitates the sale.
While York does not provide legal advice, we regularly work with brokers to highlight how contractual structures can affect liability exposures and how those exposures may influence underwriting outcomes.
This awareness helps brokers have more informed conversations with clients and supports more competitive, sustainable placements over time.
Beyond Liability: Additional Cover Considerations
In some cases, liability claims aren’t the only concern.
Product recalls, for example, can generate significant third-party costs even where no injury or property damage has occurred. If a regulator deems a product unfit for purpose, the cost of removing it from shelves (particularly through major retailers) can be substantial.
York can consider extensions that respond to third-party product recall expenses, providing broader support where appropriate and aligned to the risk profile.
Built for Brokers, Backed by Experience
Everything we do at York Underwriting is shaped around the realities brokers face.
“Brokers are managing multiple clients, deadlines and complex risks at the same time,” Craig says. “Our goal is to make their job easier by being accessible, responsive and practical.”
Whether a broker is seeking early insight on a potential opportunity, navigating a complex supply chain, or under pressure to deliver terms quickly, our team is ready to engage.
Manufacturing and distribution risks don’t have to slow brokers down. With the right underwriting partner, they can become a source of confidence and competitive advantage.
How to Work With York Underwriting in Manufacturing & Distribution
We aim to make engagement straightforward.
Submissions go directly to experienced underwriters who understand the sector and can provide timely feedback. Brokers are welcome to use our manufacturing and distribution proposal forms or their own, whatever helps move things forward efficiently.
We’re also open to early, advisory conversations. You don’t need a fully packaged submission to pick up the phone.
Ready to Talk Manufacturing & Distribution?
If you’re working with manufacturing or distribution clients, whether they’re importing products, selling online, or operating across borders, then York Underwriting is here to support you.
Bring us the risk early, bring us the questions, or bring us the challenge. We’ll bring experience, clarity and a broker-first mindset.
York Underwriting. Built for brokers. Backed by experience.
Let’s talk manufacturing and distribution.
