Secure your business and inventory with wholesaler and distributor insurance.
In stock. In transit. At risk.
Wholesalers and distributors face some special risks by the nature of their business. Simply having large amounts of stock on the premises or in transit increases the financial risks of fire, flood, or theft. Commercial property insurance helps protect your inventory. However, you then have to factor in the costs and claims for compensation from the effects the damaged or lost stock has on your customers’ supply chains. And because you are the distribution part of the supply chain, you need coverage if something goes wrong with the products you are storing and transporting. With product recall and product liability insurance, your business may have coverage should there be a recall or liability claim against you for a product you distributed. In addition, there is also the risk of transporting products from point A to point B, so having cargo and transit insurance may help protect products that you purchase or sell while on the move.
Three areas of insurance coverage in one policy.
Specialty insurance policies for wholesalers and distributors are usually highly customizable to your particular needs, including having appropriate coverage limits to reflect the high value of a full warehouse of stock. Usually, you’ll have three basic components: commercial property insurance to help cover the stock itself; protection against loss of income if your facility is put out of action with business income insurance; and general liability insurance to help cover claims for injury or property damage visitors suffer while on your premises or your delivery staff cause elsewhere. Here are some businesses that may benefit from a wholesaler and distributor insurance policy:
- Auto Wholesalers
- Clothing Wholesalers
- Computer Wholesalers
- Construction Material Wholesalers
- Electronic Wholesalers
- Food Wholesalers
- Furniture Wholesalers
- Medical Equipment Wholesalers
Additional coverages options are available.
You’ll also usually have the option to add additional types of coverage such as protection against a data breach, human resources and employee claims, loss of power or communication at your facility, or damage to equipment that you have leased. This includes coverages such as cyber liability, employment practice liability, business interruption, and systems breakdown insurance. The needs of your particular business may vary, but these general business insurance solutions may benefit you.
Are you interested in wholesaler and distributor insurance to help safeguard your stock and your business? Contact us to go over your coverage options and the needs of your business.
Wholesale and Distribution Insurance Review Questions
What inventory and warehouse information should I prepare for an insurance review?
Prepare inventory values by location, seasonal peaks, storage arrangements, warehouse construction and protective systems, and details of goods owned by others. Explain valuation methods, special storage needs and any third-party warehouses. Include current policies and loss history so limits, deductibles and conditions can be reviewed. Coverage is subject to underwriting and policy terms; a quote request does not bind coverage.
Are goods in transit and all delivery arrangements covered by the same policy?
Do not assume warehouse coverage follows goods in transit. Identify who owns the goods, when responsibility transfers, shipment values, routes and transport methods. Describe deliveries using company vehicles, hired carriers or employee-owned vehicles. Cargo or transit protection and liability arising from vehicle use address different risks; review applicable policies, contracts, limits and exclusions for each arrangement.
How should we review products liability and supplier or customer insurance requirements?
Describe the products you distribute, their uses, where they are sold and whether you import, relabel or modify them. Review supplier and customer contracts alongside your policies and endorsements, including requested limits, additional insured provisions and contractual obligations. A certificate alone does not establish that every requirement is met. Products liability does not automatically include recall expenses. Coverage is subject to underwriting and policy terms.
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Wholesaler and Distributor Insurance Quote Request
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