Peptide distribution claims don’t always show up as “obvious product liability.” A lot of pain comes from disputes, documentation gaps, and downstream allegations that still trigger defense costs.

 

Here are common scenarios we build the program around:

 

1) Bodily injury allegation tied to a batch

A downstream customer alleges an injury and points to your lot number.

Even if you believe the allegation is wrong, defense costs can escalate quickly.

Typical friction points: batch traceability, COAs, labeling, chain of custody.

 

2) Contamination or purity dispute

A customer claims the material failed testing or was contaminated, and demands replacement costs or damages.

Sometimes this turns into a broader allegation about quality control or supplier vetting.

Typical friction points: supplier documentation, third-party lab results, storage conditions.

 

3) Labeling / instructions dispute

A downstream reseller says your labeling or documentation “implied” something they didn’t expect, and blames you for their customer complaints or returns.

This can become a contractual dispute that still drives legal expense.

Typical friction points: product descriptions, SDS/COA consistency, web content, reseller agreements.

 

4) Temperature excursion dispute in transit

A shipment arrives compromised (or allegedly compromised) after a delay.

The receiver rejects the shipment, and everyone points fingers: shipper, carrier, distributor, fulfillment partner.

Typical friction points: temp logs, packout specs, carrier contracts, “who had custody when.”

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5) Warehouse / storage event that damages inventory

A freezer failure, power outage, alarm issue, or handling error damages inventory.

Even if you recover quickly, the loss can be significant.

Typical friction points: monitoring logs, maintenance records, backup power, valuation method.

 

6) Recall or pullback due to a suspected issue

A supplier flags a raw material concern, or you identify a potential issue and initiate a pullback.

The expenses can include communications, shipping, disposal, third-party storage, and operational disruption—depending on the program structure.

Typical friction points: what counts as a “recall,” what expenses are included, trigger definitions.

 

7) Contract-driven liability and COI demands

A key customer requires specific limits, additional insured status, waiver of subrogation, or other wording.

If something goes wrong, the dispute can become “who promised what” under the contract.

Typical friction points: certificate language, additional insured endorsements, contractual indemnity.

 

8) Downstream misuse allegation (even when you operate responsibly)

A downstream party misuses product or markets it in a way you didn’t intend.

You may still get dragged into a claim because you’re in the chain of distribution.

Typical friction points: reseller controls, customer vetting, written terms of sale, documentation.

 

9) Cyber incident that halts operations or exposes customer/vendor data

Distributors aren’t “immune” from cyber just because you’re B2B.

If you store invoices, ACH details, customer contacts, contracts, or lab documentation, a breach or ransomware event can create serious cost and downtime.

 

Examples:

• A ransomware attack locks your order system and shipping stalls for days.

• A vendor or employee account gets phished and wires are redirected (invoice fraud).

• A compromised email thread exposes customer pricing, contracts, or banking details.

• You get a demand letter after a data exposure tied to your ERP, CRM, or email system.

• Typical friction points: MFA adoption, vendor access controls, incident response plan, backups.