Who assumes liability in the USA?

kd global USA has taken out a product liability insurance in the USA that is tailored specifically to the interests of kdglobal as the main distributor of the products. Although the insurance coverage under this policy cannot be extended to foreign companies as additional insured, the product is specifically reviewed as part of the insurance program of kd global and SPACEGOATS to ensure that it meets the requirements and guidelines of the insurer. kd global USA maintains a general liability insurance based in the USA with the following coverage amounts:
$1,000,000 per occurrence
$2,000,000 as aggregate
$2,500 deductible
Are attorney fees included? If a claim is made under kd global's insurance policy, the insurance company will cover the costs of defense, including attorney fees, investigations, legal formalities, etc. The insurance is in the name of kd global and covers the products distributed by kd global; it does not extend insurance coverage to other customer companies and therefore may not cover the attorney fees of the customer companies.
The insurance coverage of kd global does not extend to the legal entities of your customers. While a lawsuit against the foreign legal entity is possible in the USA, since you are not a US legal entity in this constellation, we assume that a claim will generally only be directed against kd global USA.
Regarding liability in the USA in general:
The "chain of liability" is a concept applied in product liability to determine the potential liability of multiple actors in the distribution chain of a product. It states that any actor involved in the design, manufacture, distribution, or sale of a product can be held liable for damages caused by that product.
The chain of liability typically includes the following actors:
  1. Manufacturer: The manufacturer is the company that designs and produces the product. It bears primary responsibility for the safety and quality of the product. If the product is defective or has a flaw, the manufacturer may be held liable for resulting damages.
  1. Supplier: Suppliers are companies that provide individual components, parts, or materials for the product. If a defective component or material comes from a supplier and causes damages, the supplier may also be held liable.
  1. Retailer: Retailers are companies that sell or distribute the product. They can be both individual retailers and wholesalers. If a defective product causes damages through sale or distribution by a retailer, the retailer can also be held responsible.
  1. Amazon: As an online marketplace, Amazon provides the platform through which the seller offers its products. Amazon cannot usually be considered the manufacturer of the products, as it is not normally directly involved in the manufacturing process. However, Amazon can be considered a broker or distributor and under certain circumstances may assume some liability. This could be the case, for example, if Amazon has knowledge of dangerous or defective products and does not take appropriate measures to remove them from circulation.
  1. Distributor: A distributor is a company that acts between the manufacturer and the retailer and buys, stores, and resells the product in large quantities to retailers. If a distributor passes on a defective product and causes damages, it can also be held liable.
  1. Carrier: The carrier responsible for shipping the products from Germany to the USA can also be included in the chain of liability. If damages or losses occur during transport, the carrier could be held liable for these, provided it has demonstrably committed negligence or breaches of contract.