Insurance For Distributors & Wholesalers

Insurance Policies to Consider For Distributors & Wholesalers

General Liability Insurance

General liability insurance is important for protecting your distribution and wholesale business against various forms of liability claims that may arise. It safeguards your company against property damage or bodily injury claims that may be a direct or indirect result of your business’s products, services, or operations. Coverage comprises the following aspects: 

Bodily Injury

A general liability insurance policy protects your company against claims of bodily injury to a client. For instance, someone may fall and get hurt at your warehouse or claim that the product they purchased from you ruined their property.

If a client blames you for such an incident, it may cost you a hefty amount. A general liability insurance policy would cover a major chunk of the legal costs to protect your distribution and wholesale business.

Property Damage

A commercial general liability policy takes care of the repair costs when there is third-party property damage. If your employees end up damaging someone else’s belongings, the repair or replacement costs can be covered by your insurance policy. 

Libel, Slander, and Copyright Infringement

This aspect protects your company against advertising injuries, such as defamation (both written and spoken) and copyright infringement. For example, if your employee publishes a bad review about one of your competitors, you company may get sued for libel. In such a situation, your insurance policy can cover the legal costs.

Advertising Injury

This pertains to copyright infringement. For instance, if you make the mistake of featuring a photographer’s photo in your ads without permission, they may file a lawsuit against your distribution and wholesale business. General liability insurance can take care of the costs to defend your business.

Commercial Property Insurance 

A commercial property insurance policy can safeguard your company’s physical assets. It offers financial compensation in case your business’s property gets ruined due to theft, fire, or some other covered loss. 

This policy can protect your warehouse, tools, equipment, furniture, inventory, and personal property. Different factors, such as occupancy and location, are taken into account when estimating the cost of a commercial property insurance policy. Here is an overview of the coverage offered by this policy:

Fire Damage

This aspect takes into account the damage caused to your property and inventory due to fire. For instance, if the furniture in your warehouse gets destroyed due to fire, the insurance policy can pay to replace it. 

Customer Injuries

If a non-employee, such as a customer, gets injured on your property, they may file a lawsuit against your business. A customer may trip or fall in the business premises, which may result in hefty legal expenses. 

Theft 

As a distributor and wholesaler, you may have costly inventory inside your warehouse. There is always a risk of a thief breaking in and stealing your tools and equipment. If such an incident takes place, a commercial property insurance policy can offer financial compensation.

Lost Wages

In case of a theft, fire, or some other covered loss, there may be some income loss while repairs are being conducted or equipment is being replaced. If you carry commercial property insurance, you will receive compensation as long as you are unable to run your business.

Business Income Insurance

Business income insurance enables you to replace the wages lost due to theft, fire damage, and wind damage. It can serve the same purpose as business interruption insurance or income protection insurance. 

For instance, your business may be unable to operate properly due to covered property damage such as wind, fire, or theft. Business income insurance can take care of your business costs till it is operational again. Here are the details of business income insurance coverage:

Fire Damage

If your warehouse catches fire, you may have to shut down your business for the time being so that repairs can be done. Business income insurance can compensate for the lost income while restoration work is being carried out. 

Theft

Thieves may steal some of the tools and equipment located in your warehouse. For instance, you close for the day when there is a break-in and valuable inventory is stolen. You may have to temporarily halt operations while you replace the items. In such a situation, business income insurance can compensate for the income lost during this period. 

Natural Disaster

This insurance policy takes into account income lost due to a covered disaster. For instance, a hurricane hits your city, inflicting considerable wind damage to your warehouse. In this situation, you may have to shut down your business for the time being so that repairs can be conducted. Business income insurance can take care of the lost income while restorative work is being done.

General liability insurance, commercial property insurance, and business income insurance are crucial for comprehensively protecting your distribution and wholesale business against unforeseen expenses. 

General liability insurance takes care of the legal costs arising due to property damage or bodily injury. It can save your business from crumbling as a result of hefty expenses in case a lawsuit is filed against your company. 

Commercial property insurance is vital to safeguard your business premises against fire, theft, and income loss. The policy would provide net income and continuing expenses in case of a covered event. Business income insurance is also essential to ensure that the interruptions in revenue are minimized in the event of wind, theft or fire.