Audio and video equipment wholesalers & distributors insurance helps protect your business against third-party injuries, faulty products, damaged or stolen inventory, injured employees and other specialized risks. Get information on costs, coverage options and more.
Audio And Video Equipment Wholesalers & Distributors Insurance
Audio and video equipment wholesalers receive electrical or electronic audio and/or video equipment, appliances, and supplies from foreign or domestic manufacturers for distribution to electronic appliance stores, department and discount houses, and other retail establishments. The distribution center may be open 24 hours a day. Generally, the product is delivered to the customer on the distributor’s vehicles.
Owning and operating a wholesale audio and video equipment distribution center has the potential to be a lucrative endeavor. Considering the fact that new audio and video equipment is constantly being introduced and people are always looking for the most technologically advanced products at the most affordable prices, selling these supplies wholesale can be a great business opportunity.
While it would be great if you could just set up shop and see massive success as soon as you open the doors, it doesn’t work that way; no business does. There are a lot of factors that need to be taken into consideration in order to set your audio and video wholesale distribution center up for success – and one of the most important factors is audio and video equipment wholesalers & distributors insurance coverage.
Why Is Insurance Important for Audio And Video Distributors?
Believe it or not, there are a lot of risks associated with owning and operating this kind of business. The equipment you stock is undoubtedly worth a hefty sum; if something happens to your commercial space and your inventory – a fire, a major storm, or a burglary, for example – not only do you have to pay for the repairs to your building, but you’ll also have to cover any damaged equipment.
You’ll also be dealing with the clients and vendors, who could file a personal injury or property damage claim against you. Furthermore, staff members could sustain work-related injuries or illnesses.
As the proprietor of your wholesale distribution center, you’re liable for any damages and legal claims that may arise, the cost of which can be exorbitant. Trying to cover those expenses yourself could potentially put you in financial ruin. If you have the right type of audio and video equipment wholesalers & distributors insurance, however, instead of paying for those damages and claims out of your own pocket, your insurance carrier will assist with the cost. In other words, insurance can save you from serious financial hardship.
What Type Of Commercial Insurance Do You Need?
There are several types of audio and video equipment wholesalers & distributors insurance coverage that companies in this industry should have. Some of the basic business insurance policies include:
- Commercial general Liability – If a third-party – a vendor or a client – files a claim against your business, citing personal injury or property damage, this policy will cover you. It will assist with any legal defense fees you may require, as well as the damages that may be awarded to the party who files a suit against you.
- Commercial Property – This policy protects the physical structure of your business, as well as the contents it contains, from things like fire, storm damage, vandalism, and burglary. It helps to pay for any necessary replacement and repair costs.
- Workers’ Compensation – Whether you employee a staff of 5 or 500, you’ll workers’ comp insurance. It covers the medical expenses that a staff member may require if he or she suffers a work-related injury. It also covers lost wages while an employee is recovering.
These are just some of the forms of insurance you should secure. You can invest in individual polices or a comprehensive business owners policy, which combines several types of coverage under one policy.
Minimum recommended coverages: Accounts Receivable, Business Automobile Liability and Physical Damage, Business Income and Extra Expense, Business Personal Property, Computers, Contractors’ Equipment, Employee Benefits, Employee Dishonesty, General Liability, Goods in Transit, Hired and Non-Owned Auto, Umbrella, Valuable Papers and Records & Workers Compensation.
Other coverages to consider: Building, Computer Fraud, Cyber Liability, Earthquake, Employment-Related Practices, Equipment Breakdown, Flood, Forgery, Leasehold Interest, Money and Securities, Real Property Legal Liability, Signs & Stop Gap Liability.
Exposures And Risks Of Audio And Video Equipment Wholesalers & Distributors
Property exposures come from multiple ignition sources, open construction, and the extreme damageability of all audio and video equipment and the combustibility of their packaging materials. Ignition sources include electrical wiring and equipment. All wiring must be well maintained and up to code for the occupancy.
The smallest fire can cause extensive damage from heat, smoke and water. Good housekeeping and fire controls are critical. All stock should be racked and stored with adequate aisle space and limited stockpiling to prevent a fire from spreading. Smoking should be prohibited. If there is a sprinkler system, heads must be located high enough to avoid accidental contact with forklifts. Recharging of forklifts and maintenance of vehicles should be done in a separate, ventilated area away from combustibles.
Audio and video equipment can be target items for thieves. Alarms, guards, fencing and other security precautions must be in place as appropriate to the location.
Crime exposure is from employee dishonesty. This operation involves a number of transactions and accounts that can be manipulated if duties are not separated. Background checks, including criminal history, should be performed on all employees handling money. Regular audits, both internal and external, are important in order to prevent employee theft of accounts. Audio and video equipment are attractive because of their high street value. Good security systems should be in place to discourage employee theft. Physical inventories should be conducted at least annually.
Inland marine exposure is from accounts receivable if the distributor offers credit to customers, computers for tracking inventory, contractors’ equipment, goods in transit, and valuable papers and records for manufacturers’ and customers’ records. Duplicates must be kept of all data to permit easy replication in the event of a loss. Contractors’ equipment includes forklifts, cherry pickers, and hand trucks used for moving stored items.
While goods may come to the warehouse via contract or common carriers or trains, items are generally delivered to retailers on trucks owned by the distributor. Goods in transit are subject to loss from collision or overturn. Due to the potential for theft, vehicles should be unmarked, have alarms, and be attended at all times.
Premises liability exposure is generally limited due to lack of public access to the storage facilities. If customers pick up goods, loading docks must be clearly marked and user-friendly. Customers should be confined to specific areas that are kept clean, dry and free of obstacles. Contracts with transportation and storage providers may expose the operation to additional liability. Railroad sidetrack agreements pose additional concerns.
If there is a railroad sidetrack or dock, an employee must verify that no one is in the path of an incoming or outgoing train. Railroad tracks and conveyors can be attractive nuisances. The premises should be enclosed by fencing with “No Trespassing” signs posted.
Products liability exposures are low if products are all from domestic manufacturers. Products should be marked for easy access in case of recall.
Commercial auto exposure comes from the salespersons’ fleet and delivery vehicles. There should be written policies on personal and permissive use of any vehicles provided to employees. All drivers must be well trained and have valid licenses for the type of vehicle being driven. MVRs must be run on a regular basis. Random drug and alcohol testing should be conducted. Vehicles must be well maintained with records kept in a central location.
Workers compensation exposure is very high. Lifting injuries such as back pain, hernias, sprains and strains are common so workers should be trained in proper lifting techniques and to use conveyances. Forklift operators must be properly trained. Shelving must be stable to prevent stored goods from falling onto workers. Floor coverings or coatings in the warehouse may pose slip and fall hazards. Housekeeping is critical. Salespersons and delivery drivers may be subject to holdup. Training must be provided to deal with such situations.
Insurance Classification Audio And Video Equipment Wholesalers & Distributors
Commercial insurers classify air conditioning and heating wholesaler and distribution businesses using several coding systems. You can wind up paying a lot more for your insurance premiums if your distribution business is not properly classified:
- SIC CODE: 5064 Electrical Appliances, Television and Radio Sets
- NAICS CODE: 423620 Household Appliances, Electric Housewares, and Consumer Electronics
- Suggested ISO General Liability Code: 12391
- Suggested Workers Compensation Code: 8010
SIC Code 5064 – Electrical Appliances, Television and Radio Sets
Here is the official OSHA SIC code description:
Establishments primarily engaged in the wholesale distribution of radio and television receiving sets, other household electronic sound or video equipment, self-contained air-conditioning room units, and household electrical appliances. Also included are establishments primarily engaged in the wholesale distribution of household nonelectric laundry equipment and refrigerators and freezers.
- Air-conditioning room units, self-contained-wholesale
- Answering machines, telephone-wholesale
- Clothes dryers, household: electric and gas-wholesale
- Dishwashers, household: electric-wholesale
- Electric appliances, household-wholesale
- Electric housewares and household fans-wholesale
- Electric irons-wholesale
- Electric ranges-wholesale
- Electric razors-wholesale
- Electric washing machines-wholesale
- Freezers, household-wholesale
- Garbage disposals, electric-wholesale
- Humidifiers and dehumidifiers, portable-wholesale
- Ironers, household: electric-wholesale
- Microwave ovens, household-wholesale
- Motor vehicle radios-wholesale
- Percolators, electric-wholesale
- Phonographs, except coin-operated-wholesale
- Radios, receiving only, household and automotive-wholesale
- Refrigerators, household: electric and gas-wholesale
- Sewing machines, household: electric-wholesale
- Stereo equipment-wholesale
- Stoves, cooking or heating, household electric-wholesale
- Tape players and recorders, household-wholesale
- Television sets-wholesale
- Toothbrushes, electric-wholesale
- Vacuum cleaners, household-wholesale
- Video disc players-wholesale
- Waffle irons, electric-wholesale
- Washing machines, household electric-wholesale
- Water heaters, electric-wholesale
Get A Wholesalers And Distributors Insurance Quote
Not all air conditioning and heating wholesalers & distributors insurance polices are the same. If you are shopping for new insurance, or just want to see if you have the best fit policy, let one of our expert agents take a look at your situation. In most cases we can save you money and offer you better policy options than you currently may have.
Wholesale & Distribution Insurance By Industry
- Air Conditioning and Heating
- Audio and Video Equipment
- Beer and Ale
- Camera and Musical Instrument
- DVD and Videos
- Coffee Dealers
- Commission Merchants
- Dairy Products
- Dry Goods
- Electrical Appliances
- Electrical Equipment
- Electrical Supplies
- Electronic Equipment and Instruments
- Exporters and Importers
- Food Brokers
- General Merchandise
- Greeting Cards
- Lumber Yards
- Motion Picture Distributors
- Restaurant Equipment
- Roofing Materials
- Seed Merchants
- Theatrical Supplies