What is Distributor Insurance and Wholesaler Insurance, and What Does It Cover?
The distribution and wholesale sector come with their own unique set of challenges. Businesses depend on acquiring the right product at the right time and place, and customers depend on efficient delivery regardless of any problems that pop up.
Many different types of businesses are eligible for this type of insurance protection, including:
- Furniture distributors
- Electrical supplies distributors
- Distributors of fresh fruits and vegetables
- Beer distributors
- Industrial supplies distributors
- Grocery distributors
Some of the risks involved in this particular industry include floods, theft, damaging storms and fires that can damage products as well as the storage unit. These types of damage may cause late or failed shipments, which in turn impacts the efficiency of services and can negatively affect your customers’ trust in you as a distributor.
No one wants to lose product, customers and money through no fault of their own. Distributor insurance coverage comes in handy to guard against such losses and help your business keep going should disaster strike. These insurance policies are tailored according to the size and scope of the business, whether it is small retail or a larger distributor.
What Does Distributor Insurance Cover?
Insurance policies designed for distributors and wholesalers include property coverage insurance and general liability insurance. Of course you’ll also need more general types of business insurance such as workers compensation, commercial auto and any other business insurance coverage that applies to your situation and needs. Umbrella/Excess Liability coverage can also help ensure that you are fully covered in any event.
Commercial Property Insurance
Under this type of coverage, the insurance company covers repairs or total replacements of damaged items, including permanently installed equipment and machinery, furniture and fixtures, as well as portable stock and other personal effects. The damage could be due to anything from a storm to a burst pipe or fire.
Other items include valuable records, property lost during transit, outdoor signs and debris caused by the damage. Commercial property insurance also covers the surrounding walls and landscaping, as well as compensating third parties who are affected by the damage to your property.
Businesses can get commercial property coverage whether the business owns the property, rents office space from someone else, or works from a home office.
General Liability Policy
A general business liability policy protects the business in case of lawsuits. Customers may file lawsuits due to errors in omission or employee negligence. Once a company is served with a lawsuit and loses, the judgment can render the company bankrupt upon payment. This coverage protects against lawsuits up to a certain limit, after which the insured business owner pays the rest.
Equipment Breakdown Coverage
Insurance policies designed for wholesalers and distributors include “boiler and machinery” coverage that protects you from losses due to many different types of equipment malfunctions. Motor burnout, computer and communications equipment malfunctions, and even air conditioning and heating systems are all covered.
Business Income Coverage
Wholesale and distribution businesses rely on a constant flow of goods. So when your business has to shut down temporarily, whether because of a natural disaster or some other reason, business income coverage can help replace lost net income and supply ongoing normal operating expenses such as payroll until you’re back to business.
Our insurance policies for wholesalers and distributors keep you covered, protecting you from losses due to all types of damage -- whether it’s an equipment breakdown, product damage, liability lawsuit or anything else that comes your way.
Contact us today for a wholesaler / distributor insurance quote that fits your exact needs.