Manufacturers' Representatives

What Does GL Code 45993 Cover?

ISO GL class code 45993 covers Manufacturers' Representatives, classifying businesses that act as independent sales agents or brokers for various manufacturers. These operations typically involve soliciting orders, promoting products, and maintaining client relationships on behalf of their principals, without taking title to the goods or engaging in manufacturing themselves.

Who Uses This Class Code?

This code applies to independent sales representatives, commission-based agents, and brokerage firms specializing in representing multiple manufacturers. Specific business types include independent sales agencies for industrial equipment, fashion lines, consumer goods, or technology products.

Common GL Claims for This Class

Common GL claims for manufacturers' representatives include personal and advertising injury claims, such as defamation or copyright infringement during sales presentations. Additionally, claims may arise from property damage occurring at client sites during product demonstrations or accidental damage to samples.

Coverage Tips for Code 45993

• Ensure your General Liability policy includes coverage for 'Personal and Advertising Injury' to protect against claims arising from libel, slander, or copyright infringement during promotional activities.
• Verify that your contracts with manufacturers clearly define liability responsibilities, especially regarding product defects or warranty issues, as your GL policy may not cover these.
• Maintain accurate records of gross receipts, as this is often the basis for premium calculation, to avoid audit discrepancies and potential premium adjustments.
• Consider adding Professional Liability (E&O) coverage, as manufacturers' representatives often provide advice or recommendations that could lead to claims of negligence or errors.