Theatrical supplies 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.
Theatrical Supplies Wholesalers & Distributors Insurance
Theatrical supply wholesalers receive their products from foreign or domestic manufacturers for distribution to theatrical supply stores, production companies, and other retail establishments. The stock can include a wide range of items, used in theatrical productions, such as cosmetics, costumes, lighting, props, sets, and sound systems. The distribution center may be open 24 hours a day. Generally, the products are delivered to the customer on the distributor’s vehicles.
Makeup, costumes, props, curtains, lighting; as a theatrical supplies distributor or wholesaler, you deal with a lot of inventory. You also work with a lot of clients. Your job is to make sure that the clients you services receive the products that they need; but you’re responsible for a lot more than that. You also have to make sure that your inventory is properly stocked and kept safe while it’s in your custody, you need to secure your warehouse or store, you have to keep the equipment you rely on to operate your business in proper working order, and you need to provide your employees with a safe work environment. Those are just some of the things that are on your long list of responsibilities.
While you work tirelessly to make sure that you are attending to everything that you are responsible for, things can happen that are beyond your control. Accidents, mix-ups, property damage, physical injuries, and equipment breakdowns are just some of the things that could go wrong. When they do, as the owner and operator of your theatrical supplies distribution center or wholesale store, you are liable for the expenses.
The cost of repairing or replacing damaged equipment, medical bills, property damage, and even legal fees can be exorbitant. In fact, these unexpected expenses can be so big that they could potentially lead to financial devastation. How can you protect yourself from serious losses? – By making sure you the the right theatrical supplies wholesalers & distributors insurance coverage.
Why Is Insurance Important for Theatrical Supplies Wholesalers & Distributors?
When faced with peril, theatrical supplieswholesalers can rely on their business insurance to help them recover. Commercial nsurance pays for the costs that are associated with things like property damage, physical injuries, lost income, motor vehicle collisions, and more.
When a peril strikes and you file an insurance claim, your insurer will cover the costs that your policy covers. For example, if one of your commercial vehicles is involved in an accident, commercial auto insurance would help to cover the cost of any repairs that the vehicles involved in the crash might need, any injuries individuals may have sustained, and even legal fees that may arise if another driver files a lawsuit.
If you weren’t properly insured, you would have to pay for these expenses on your own. Given the high costs that are associated with the risks you face, having the best fit of theatrical supplies wholesalers & distributors insurance will protect you from serious financial damage.
What Type Of Commercial Insurance Do You Need?
The specific type of coverage theatrical supply need depends on various factors; the location of the company, the specific services that are offered, and the size of the organization, for example. However, with that said, there are certain types of theatrical supplies wholesalers & distributors insurance coverage that all businesses in this industry should carry, including:
- Business interruption
- Commercial auto
- Commercial general liability
- Commercial property
- Product liability
- Workers’ compensation
These are just some of the types of theatrical supplies wholesalers & distributors insurance coverage you should carry. You can carry individual policies, or opt for a comprehensive policy that combines several different types of coverage under a single 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 Theatrical Supplies Wholesalers & Distributors
Property exposure is from multiple ignition sources, open construction, and the combustibility and damageability of the stock from fire, smoke, and water. Ignition sources include electrical wiring and equipment.
All wiring must be well maintained and up to code for the occupancy. Dusts generated by fabrics can increase the fire load. Adhesives, paints, and sealants are flammable and should be stored away from combustibles. Good housekeeping and fire controls are critical. All stock should be racked and stored with adequate aisle space and limited stockpiling to prevent the spread of a fire. 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. Theft is a major concern as some stock will have a high street value. 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. 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 and hand trucks used for moving stored items.
While goods may come to the warehouse via contract or common carriers or trains, goods are generally delivered to retailers on trucks owned by the distributor. Goods in transit are subject to loss from collision, overturn, or 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.
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.
Commercial auto exposure comes from the salespersons’ fleet and delivery vehicles. There should be a written policy 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 can pose slip and fall hazards. Housekeeping is critical.
Insurance Classification Theatrical Supplies Wholesalers & Distributors
Commercial insurers classify theatrical supplies 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: 5199 Nondurable Goods, NEC
- NAICS CODE: 424990 Other Miscellaneous Nondurable Good Merchant Wholesalers
- Suggested ISO General Liability Code: 12362
- Suggested Workers Compensation Code: 8018
SIC Code 5199 – Nondurable Goods, NEC
Here is the official OSHA SIC code description:
Establishments primarily engaged in the wholesale distribution of non-durable goods, not elsewhere classified, such as art goods, industrial yarns, textile bags, and bagging and burlap.
- Advertising specialties-wholesale
- Art goods-wholesale
- Bags, textile-wholesale
- Baskets: reed, rattan, willow, and wood-wholesale
- Broom, mop, and paint handles-wholesale
- Canvas products-wholesale
- Chamois leather-wholesale
- Christmas trees, including artificial-wholesale
- Clothes hampers-wholesale
- Cotton yarns-wholesale
- Fish, tropical-wholesale
- Foam rubber-wholesale
- Furs, dressed-wholesale
- Gifts and novelties-wholesale
- Glassware, novelty-wholesale
- Greases, animal and vegetable-wholesale
- Ice, manufactured or natural-wholesale
- Industrial yarn-wholesale
- Jewelry boxes-wholesale
- Leather and cut stock-wholesale
- Leather goods, except footwear, gloves, luggage, and
- Lighters, cigar and cigarette-wholesale
- Linseed oil-wholesale
- Novelties, paper-wholesale
- Oils, except cooking: animal and vegetable-wholesale
- Oilseed cake and meal-wholesale
- Pet supplies, except pet food-wholesale
- Pipes, smokers’-wholesale
- Plant food-wholesale
- Plastics foam-wholesale
- Rayon yarns-wholesale
- Rubber, crude-wholesale
- Sheet music-wholesale
- Silk yarns-wholesale
- Vegetable cake and meal-wholesale
- Wood carvings-wholesale
- Woolen and worsted yarns-wholesale
Get A Wholesalers And Distributors Insurance Quote
Not all theatrical supplies 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.
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