Independent distributor insurance
- By Alessandro Nardo
Policies that cover damage from defective components
Is it really important to ensure that independent distributors provide insurance on the products they sell?
When you purchase electronic components, there is always a risk that they may be defective. Sometimes, an acquired component may compromise the function of the device in which it has been mounted – or even damage it or your production line. What should you do in such cases? Is a warranty sufficient?
The topic of insurance provided by distributors is always very controversial.
Distributor-provided insurance is supposed to complement a traditional warranty, and therefore should be an extension of the latter. In reality, particularly in the Far East, distributors understand this insurance to be synonymous with the warranty and therefore do not provide it.
The importance of insurance
Insurance is important because it ensures that the distributor can reimburse you:
- for manufacturing defects discovered after purchase, or
- for damage caused to your equipment by a defective or malfunctioning component.
In business relationships, especially in the electronic component sector, the role of insurance is often marginal and is frequently overlooked. The existence – or absence – of an insurance policy usually only matters when failure or damage occurs: but at that point, it is really too late.
Insurance from electronics distributors
The reason this insurance is almost never discussed is that most distributors (sometimes even official ones) do not have it. Some official distributors have it, but do not mention it to prevent their customers from taking advantage of it.
Many independent distributors also do not have insurance on the components they sell. The reason: they tend to change suppliers all the time. Unless they have a timely tracking system, it is difficult for them to find an insurance company that is willing to underwrite the risk.
Insurance cover for collateral damage caused by electronic components is fundamental and Electronic Partner recognises this!
For this reason, Electronic Partner has successfully mastered the process of obtaining insurance cover from independent distributors over the years.
Do you need to buy Littelfuse components and want to be sure that there is insurance cover? Are you looking for an independent distributor of LittelFuse:0805L075WR, Littelfuse0215010.MRET1P, or Littelfuse0242.050UR with an insurance policy?
To protect yourself from the risk of defective components or damaged equipment, make sure you use professionals that have insurance on components of different brands.
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