Business Insurance for
Auto Parts Wholesalers
Auto parts wholesalers often sell directly to other businesses such as a consumer part store or a mechanic’s shop. Some wholesalers also sell directly to the public. Either way, your company has many customers to satisfy and large inventory investments that you must protect from damage or loss. Small business insurance can be customized to fit the specific needs of your business to limit the amount of risk you face.
General liability insurance protects your business if a customer injures himself or suffers property damage while on your premises. If your wholesale company sells directly to the public and a customer replaces his alternator in your parking lot, accidents can happen that you may be held liable for. General liability protects your company from accidents of this sort.
It also protects you from product liability. In the event that a part you sell to another supplier is defective in some way, and brings harm to them or their end customers, general liability helps protect your company from damages.
General liability automatically grows with your company because it provides coverage for new products and new business locations as you add them.
Business Owners Policy (Bop)
A business owners insurance policy protects your tangible and intangible business assets in addition to providing you with general liability coverage.
BOP combines liability, property and income protection all in one.
Property damage can occur due to natural disasters or unusual events that damage or destroy your physical business buildings. BOP covers structures, outdoor equipment and property, and interior tangible property. If you’ve made improvements to the structure, those are covered by a business owners policy as well.
BOP protects your company from the loss of valuable papers. If critical paperwork is damaged or destroyed there could be extensive costs to replace or recreate them. BOP takes care of these expenses for you.
If your auto parts warehouse keeps critical records in digital and electronic form, BOP covers replacement and recovery costs if those are damaged as well.
Unfortunately not all employees are as honest as we hope for them to be, and BOP covers losses caused by dishonest actions such as theft of auto parts and tools, monetary theft and fraud.
When you use vehicles as part of your business, you need to protect them with commercial auto insurance. Whether you use personal vehicles or you have a fleet of delivery trucks for your auto parts warehouse, accidents are possible. Business auto insurance covers your vehicle damage and losses up to a specific amount per accident. If people are injured in the accident it also takes care of emergency medical care expenses.
The employees and staff members of your company must be covered by workers comp insurance. This is a law in every state. Workers compensation pays for medical and disability expenses if your employees are injured on the job.
Surety bonds are guarantees. When you sign a contract to provide parts for a client, they may require you to be bonded before they will close the deal. Surety bonds guarantee that you will honor the terms of the contract you sign.
If you contract to provide a specific number of auto parts to your customer and your delivery truck breaks down, you are unable to fulfill the terms of your contract. The surety bond will pay your customer’s damages when this happens.