Insurance for Wholesalers and Distributors
Wholesalers and distributor businesses generally work with other businesses. Instead of selling directly to the general public, you may sell products in bulk to retail partners. This business model simplifies many things. It does require quite a bit of upfront investment and planning to get off the ground. Be sure your company and its assets are protected securely by getting the right amounts of small business insurance coverage appropriate to your needs.
General liability insurance is designed to protect your small business from a number of potential calamities. If your business customers visit your facilities, general liability protects you if someone incurs bodily harm. It also provides coverage if your customer’s property is damaged in your facilities. It protects you from product liability in the event that your customers are harmed by products you sell.
General liability grows with you so that new warehouses, products or other business services are automatically covered when you add them.
Business Owners Policy (Bop)
General liability is included in a business owners insurance policy. Additionally, a BOP provides your company with property damage protection and potential income losses.
If your distribution warehouse suffers smoke damage from a nearby train wreck, business owners insurance pays for replacing and repairing the building, outdoor structures and physical property you have inside. If your furnishing suffer from smoke damage but the building is unharmed for example, a BOP will pay the cost of replacing your furnishings.
If you had to suspend business operations while you were waiting on repairs, BOP can provide for lost income.
BOP protects you from the loss of intangible property as well. If your wholesale company uses specialized software to track inventory and shipping for example, it could be extremely expensive both in downtime and replacement if that software is damaged due to a computer virus. BOP covers electronic data files and media, valuable physical papers you have on the premises, and protects you from dishonest employees.
Wholesalers and distributors use motor vehicles regularly in their business. Whether you deliver goods to customers or your sales personnel visit accounts regularly, business auto insurance protects you from losses caused by accidents.
As an employer in the United States you are required by law to carry workers comp insurance. Workers comp protects your employee’s from work related accidents, injuries and illnesses. If an employee is injured on the job, workers comp pays their medical bills, prescription costs, and temporary disability among other things.
Since your business deals mainly with other businesses, if you cannot fulfill a contract your customer’s business may be at risk. Surety bonds are guarantees that you will meet the obligations of a contract. If you are unable to fulfill the contractual agreement for any reason, a surety bond will pay your customer for losses or damages. Some customers may refuse to do business with you if your company is not bonded.