Wholesalers’ Insurance

One of the greatest rewards of being a wholesaler is putting your negotiation skills to use and landing a major deal. But that reward doesn’t come without certain risks when it comes to delivering on your promises. Wholesale businesses carry risks to owners, employees, and customers that may be alleviated with adequate insurance coverage.

If you own a wholesale business, you and your employees could face risks like trips, falls, chemical exposure, or repetitive stress injuries. Your customers could slip on wet surfaces or trip over your products. Your warehouse or equipment could be damaged due to fire or catastrophic weather. And you could be held liable for all of these damages.

empty wood pallets

What are the common types of wholesalers’ insurance? 

Workers’ compensation insurance helps protect a wholesale business and covers employees if they become ill or injured on the job. Check your current workers’ comp rate.

General liability insurance helps protect a wholesale company against third-party claims that involve property damage, bodily injury, or advertising injury.

A BOP offers bundled insurance that may include business interruption insurance, property insurance, and liability coverage for a wholesale business.

Commercial automobile insurance helps cover vehicles owned by a wholesale company and injury to a third party.

Cyber liability insurance helps cover a company for events such as a data breach in which customers’ or employees’ personal information or company data is stolen or held hostage.

Additional Insurance

Additional coverage options may be built into a business owner’s policy or purchased separately to customize a wholesale insurance package.

What are common wholesale business risks, and which type of insurance may cover them?

Selecting small business insurance can be confusing. Here are some sample scenarios to point you in the right direction. We recommend consulting with a trusted advisor to make sure you get the right types of coverage for your business.

A worker is injured by a forklift.
Workers’ compensation insurance may cover the employee’s medical bills and lost wages.
A customer slips on a wet floor in a warehouse and sustains a back injury.
General liability insurance may cover the customer’s medical bills and lost wages due to bodily injury and protect the company from further liability.
A warehouse and equipment are damaged by fire.
Property insurance (often through a bundled business owner’s policy) may cover the costs to rebuild, repair, and replace the warehouse and equipment.
In addition to the damage, business is interrupted due to the fire.
Business interruption insurance (often through a business owner’s policy) may cover lost profits, temporary location moving costs, and certain operating expenses related to business loss from the fire.
An employee backs a delivery truck into a parked car.
Commercial auto insurance may cover the delivery truck repair costs and the third party’s car repair bills.

Who needs wholesalers’ insurance? 

Appropriate insurance is important for all wholesale businesses, including:

  • Merchant wholesalers

  • Full-service wholesalers

  • Retail wholesalers

  • Limited-service wholesalers

  • Cash and carry wholesalers

  • Logistics wholesalers

  • Brokers

  • Agents

  • Specialized wholesalers

  • Mail order wholesalers

  • Business to business wholesalers

  • Distributors

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