Wholesalers And Distributors Insurance
(Quotes, Cost & Coverage)

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Wholesale & distribution 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.

Commercial Insurance For Wholesalers and Distributors

Wholesalers And Distributors Insurance ⋆ Quotes, Cost & Coverage

A large part of our economy depends on wholesalers & distributors - from manufacturers who make products and the stores the sell them. Business insurance can protect your operations from common distribution and wholesaler liability issues.

Wholesale and distribution operations have many of the same physical damage and property coverage concerns as warehouse operations. In both, the value of both real property and stocks of merchandise is very high. Loss control and other techniques appropriate to the types of merchandise involved are needed.

For these reasons, adequate and appropriate wholesalers and distributors insurance coverages are important. The commercial automobile exposure can also be significant, based on the extent of merchandise delivery.

In addition, transportation or motor truck cargo insurance on the merchandise must also be arranged. Employee theft is always an issue and can be a significant exposure, depending on the type of property involved.

Finally, the types of merchandise and material handled makes workers compensation insurance another very important coverage.

What Type Of Insurance Do Wholesalers And Distributors Need?

Below are some recommend wholesalers and distributors insurance policies for wholesaling and distributing businesses. These coverages are extremely important because they ensure that your business will not suffer large out-of-pocket costs as a result of any claim and/or lawsuits you are found liable for, and legal fees - even if you are sued frivolously.


Package policies are the most convenient and cost effective way to combine a number of coverages in one wholesalers and distributors insurance policy. For some operations in this category, the businessowners policy may be the best choice for eligible businesses willing to exchange some coverage flexibility for reduced premiums.


Wholesalers And Distributors Liability Insurance

The premises and products liability loss exposures are usually limited, except in cases where the operation imports products directly. With direct importing, the wholesaler becomes more like a manufacturer with respect to any products-related losses or damage.

Wholesalers that distribute alcoholic beverages need separate liquor liability coverage because they are subject to the liquor exclusion in the CGL. Wholesalers and distributors insurance protects the operations from liability exposures.


The commercial auto exposure can be significant, depending on the extent of delivery of goods to customers. If the wholesaler has no delivery operations, the exposure may not be more than a salesperson's private passenger fleet.


Employers are required to provide coverage for on-the-job injuries sustained by their employees through a workers compensation policy. Automation in many wholesale operations has dramatically reduced the number of employees but workers compensation coverage is still required for those that remain. If the wholesale or distribution operation is located in a coastal area or along navigable waters, and workers load and unload ships or other vessels, Longshore and Harbor Workers' Compensation Act coverage is also required.


The increased limits of wholesalers and distributors insurance needed are based on the types of products handled and distributed along with the contractual relationship of the wholesaler with its suppliers and customers. Higher limits are particularly important if the insured directly imports any products or does any repackaging.


Wholesalers And Distributors Commercial Property Insurance

Inventory represents the largest property value for most wholesalers. Many wholesale operations have periods when these values increase dramatically and should consider the peak season or value reporting options to prevent underinsurance.

Business income is an important coverage need and business income from dependent and secondary dependent properties wholesalers and distributors insurance coverage should be considered in cases where the insured has only a few suppliers or customers.

Types of Property
Property Coverage Forms
Perils Insured/Causes of Loss Forms
Property Coverage Options to Consider
Valuation Options
Time Element Coverages
Time Element Coverage Options to Consider

Coverage on goods in transit and electronic data processing coverages are probably the most important inland marine coverages for most wholesalers. They transport and deliver most of the goods they sell and rely heavily on computers for most of their transactions and operations. Specialty inland marine coverage forms have been created for specific dealers and should be considered in lieu of commercial property coverage forms.


Losses due to employee theft are almost always the primary crime coverage concern. However, computer and funds transfer fraud may also be major loss and coverage concerns because most invoices and billings are handled electronically. Fraudulent impersonation coverage can be very important because of potential losses due to trickery.


Most wholesale operations do not have significant exposures that require surety bonds. However, some types of surety bonds may be required, depending on the nature of their contracts with others or their involvement with governmental entities.


Air cargo transportation may occasionally be needed, depending on individual transportation circumstances, customer requirements or emergency situations that arise from time to time.


Ocean cargo insurance should be considered for goods the wholesaler ships overseas. Because the policy has war risk exclusions for certain geographical areas, the status of countries to which the goods are shipped must be reviewed and war risk coverage considered if available.


Depending on the unique features or peculiar characteristics of their operations, some wholesalers may have unusual exposures. One or more of the following wholesalers and distributors insurance coverages may be appropriate.

How Much Does Wholesalers And Distributors Insurance Cost?

How much does wholesalers and distributors insurance cost? The premiums vary depending on the amount of risk exposure, and it depends on the endorsements and deductible selected. The cost of wholesalers and distributors insurance varies.

Get A Wholesalers And Distributors Insurance Quote

Not all wholesalers & distributors 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 & Distributors Insurance By Industry

Wholesale Industry Distribution Insurance

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