NAICS UNIVERSITY · Free research for insurance agents
Wholesale Trade Agents and Brokers
NAICS 425120 · United States · 2022 edition
This industry comprises wholesale trade agents and brokers acting on behalf of buyers or sellers in the wholesale distribution of goods, including those that use the Internet or other electronic means to bring together buyers and sellers. Agents and brokers do not take title to the goods being sold but rather receive a commission or fee for their service. Agents and brokers for all durable and nondurable goods are included in this industry.
Start with the work promised to the client.
For Wholesale Trade Agents and Brokers, clarify the services, contracts and consequences of an error. Review errors and omissions, contractual liability, premises liability. Confirm which professional activities and additional services the proposed coverage actually addresses.
Questions to ask
- Does the business ever take title to or physically handle any of the goods it brokers?
- What product categories are primarily handled — are any regulated, high-value, or perishable?
- Do client contracts include indemnification clauses or hold-harmless agreements?
- Are transactions primarily domestic, or is there international sourcing or sales activity?
- What electronic platforms or systems are used to manage transactions and client data?
- For Wholesale Trade Agents and Brokers, what should the underwriter know about any physical handling, storage, or warehousing of goods?
- For Wholesale Trade Agents and Brokers, what should the underwriter know about arrangements where the agent assumes title or consignment risk, blurring the line with wholesale distribution?
- For Wholesale Trade Agents and Brokers, what should the underwriter know about high-value or regulated product categories (pharmaceuticals, chemicals, food) that carry elevated product liability by association?
Activities described by this code
- Independent sales representatives
- Manufacturers' sales representatives
- Group purchasing organizations (acting as agents for goods distribution)
Other activities to examine
Census classification reference
For educational purposes only. AI-generated insurance research and automated logic can contain errors. Independently verify classification and coverage decisions.
Compare another operationInsurance operations research — draft
Wholesale trade agents and brokers facilitate transactions between buyers and sellers of goods without taking title to the merchandise. They earn commissions or fees for matching buyers with suppliers, negotiating terms, or managing procurement on behalf of clients. Day-to-day work is primarily office-based — phone, email, and digital platforms — with no warehousing, inventory handling, or direct product distribution in most cases.
Questions to investigate
- Does the business ever take title to or physically handle any of the goods it brokers?
- What product categories are primarily handled — are any regulated, high-value, or perishable?
- Do client contracts include indemnification clauses or hold-harmless agreements?
- Are transactions primarily domestic, or is there international sourcing or sales activity?
This insurance research was generated in April 2026. It has not received a complete human review. The October 12, 2026 audit checked codes and titles only, not descriptions or coverage assertions.