Stationers 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.
Stationers Wholesalers & Distributors Insurance
Stationer wholesalers receive a wide range of items, including various types and sizes of stationery, writing paper, greeting cards, writing instruments, calendars, notebooks, and organizers from foreign or domestic manufacturers for distribution to stationery shops, office supply stores, department stores, or other retailers. The distribution center may be open 24 hours a day. Generally, the products are delivered to the customer on the distributor's vehicles.
Like any business owner, distributors and wholesalers face a variety of risks; however, there are additional risks that are unique to the distribution and wholesale industry that business owners in this industry also face.
Some of the most common risks that stationers distributors and wholesalers are exposed to include:
- Third-party claims that involve personal injuries and property damages; for example, if a client claims an employee damaged their property while making a delivery, he or she may file a lawsuit and you would need to pay for any legal fees as well as damages that a court may find you liable for.
- Employee injuries and illnesses; if a piece of equipment malfunctions and injuries an employee, for instance, you would need to pay for any related medical expenses. You would also have to cover wages that the employee would lose while recovering.
- Damages to your commercial property; if a vandal spray paints graffiti on your building and breaks outdoor signage and lights, you would need to pay for any necessary repairs.
These are just some examples of the risks that are faced. The costs that are associated with these risks can be exceptionally high. If you had to cover those expenses yourself, you could end up suffering severe financial losses. If you are properly insured, however, the company that issues your stationers wholesalers & distributors insurance policy would assist with the costs of any covered damage or loss, thereby saving you from devastation.
Why Is Insurance Important for Stationers Wholesalers & Distributors?
Like any business in any industry, there are several risks associated with owning and operating an stationers wholesale distribution center. Your property and the inventory within it could be damaged by a fire or a flood. A vendor could be injured while making a delivery on your property. A client could file a lawsuit against you, claiming that you sold them a defective product that damaged their property. An employee could sustain a work-related injury.
These are just some of the scenarios that could occur, and as the owner and operator of your company, you would be held liable for the damages; damages that could cost an exorbitant amount of money. If any lawsuits are filed against your company, you would also be responsible for the legal fees. These expenses could be financially crippling and could ultimately lead to the loss of your livelihood - and even your personal property.
With the right type of stationers wholesalers & distributors insurance coverage, you would be protected from potential financial losses. Should a client file a lawsuit against you, your insurance company would help to cover the cost of legal defense fees and settlements. If your property is damaged in a fire, your carrier would assist with the cost of repairing and replacing the damages.
What Type Of Commercial Insurance Do You Need?
There are several types of stationers wholesalers & distributors insurance coverage that should considered. Some of the basics include:
- Equipment breakdown - If any of the equipment you rely on to operate your business bends up breaking down, this type of coverage would help to cover the cost of any repairs that might be necessary.
- General liability - When vendors, clients, or anyone other than an employee sustains an injury on your property or claims you damaged their property, general liability insurance would help to cover the associated costs, including legal fees, medical bills, necessary repairs, and any damages a court might require you to pay.
- Workers' compensation - With workers comp, if your employees sustain any on-the-job injuries or suffer work-related illnesses, their medical care will be covered. Additionally, this policy will replace part of the wages that an employee loses while recovering.
- Business auto - If any of the vehicles that are used for business-related reasons are involved in an accident, commercial auto insurance would help to pay for the repairs to the vehicle and any injuries the driver or passengers may sustain.
These are just some of the types of stationers wholesalers & distributors insurance coverage you should carry. You can buy 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 Stationers Wholesalers & Distributors
Property exposure comes from multiple ignition sources, open construction, and the combustibility and damageability of stationery items. Ignition sources are from electrical wiring and equipment. All wiring must be well maintained and up to code for the occupancy. Fire, smoke, or water damage could cause significant losses as salvage potential is limited. If there are any stocks of flammables, those should be kept well away from the paper storage, preferably in a UL approved cabinet.
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. Alarms, guards, fencing and other security precautions should 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. Physical inventories should be conducted at least annually.
Inland marine exposures come 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, goods are generally delivered to retailers on trucks owned by the distributor. Goods in transit are subject to loss from collision or overturn, but some goods can be salvaged as they do not have a high breakage potential.
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 exposure is low if products are all from domestic manufacturers.
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. Back injuries, hernias, sprains, and strains can result from lifting so workers should be trained in proper lifting techniques and have conveyances available. Forklift operators must be properly trained. Shelving must be stable to prevent stored goods from falling onto workers. Floor coverings or coatings may pose slip and fall hazards. Housekeeping is critical.
Insurance Classification Stationers Wholesalers & Distributors
Commercial insurers classify stationers 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: 5112 Stationery and Office Supplies
- NAICS CODE: 424120 Stationery and Office Supplies Merchant Wholesalers, 424110 Printing and Writing Paper Merchant Wholesalers
- Suggested ISO General Liability Code: 16005
- Suggested Workers Compensation Code: 8018
SIC Code 5112 - Stationery and Office Supplies
Here is the official OSHA SIC code description:
Establishments primarily engaged in the wholesale distribution of stationery and office supplies, including computer and photocopy supplies, envelopes, typewriter paper, file cards and folders, pens, pencils, social stationery, and greeting cards.
- Albums (photo) and scrapbooks-wholesale
- Business forms-wholesale
- Carbon paper-wholesale
- Commercial stationers (not printers)-wholesale
- Computer paper-wholesale
- File cards-wholesale
- File folders-wholesale
- Greeting cards-wholesale
- Inked ribbons-wholesale
- Looseleaf binders-wholesale
- Manifold business forms-wholesale
- Marking devices-wholesale
- Mimeograph paper-wholesale
- Office supplies-wholesale
- Pens, writing-wholesale
- Photocopying supplies-wholesale
- Ribbons, inked-wholesale
- Sales and receipt books-wholesale
- Stationery and stationery supplies-wholesale
- Tabulation cards-wholesale
- Writing ink-wholesale
Get A Wholesalers And Distributors Insurance Quote
Not all stationers 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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