Wallpaper 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.
Wallpaper Wholesalers & Distributors Insurance
Wallpaper wholesalers receive wallpaper, pastes, and supplies from foreign or domestic manufacturers for distribution to retailers, commercial builders and other commercial establishments. The distribution center may be open 24 hours a day. Generally, the products are delivered to the customer on the distributor's vehicles.
Whether you already own a wallpaper distribution center or wholesale supply store, or you are thinking about starting one up, it goes without saying that you want your business to be as successful as possible. In order to ensure your success, there are a lot of factors that you need to attend to; and one of the most important factors is understanding the risks that you are exposed to and how you can protect yourself from them.
One of the best protect to safeguard yourself from these risks is by investing in the right type of wallpaper wholesalers & distributors insurance coverage.
Why Is Insurance Important for Wallpaper Wholesalers & Distributors?
The cost of repairing damages, medical care, legal expenses - and anything else you may be liable for - can be excessive. If you had to cover these expenses yourself, the cost could be financially crippling. Insurance provides you with the monetary protection you need when things go awry; instead of paying for damages, repair costs, and other expenses out of your own pocket, the insurance company that issues your policies would cover the cost for you.
Working with the general public, ordering and storing inventory, maintaining your commercial space, employing a staff, relying on machinery; these are all important aspects o your wallpaper distribution center and wholesale supply store. While all of these elements are essential to the success of your business, they can also pose certain risks.
For example, a client could slip and fall while viewing while viewing the inventory in your store, sustain an injury, and file a lawsuit. A piece of machinery could malfunction and require a costly repair. An employee could be injured while working. Faulty wiring in your warehouse could short and cause a fire. Those are just a few examples of the different scenarios that could arise. If these - or other - types of issues occur, as the owner and operator of your business, you are financially liable.
If you're properly insured, you'll have peace of mind knowing that you'll be able to recover from any curves you may hit in the road of business ownership. You'll also be able to assure your clients, vendors, and employees that you have the financial resources available if something does go wrong that you are liable for. Furthermore, some types of wallpaper wholesalers & distributors insurance coverage are mandated, so being insured assures that your business is in compliance with the law.
What Type Of Commercial Insurance Do You Need?
There are several forms of insurance coverage that wallpaper distributors and wholesalers should carry; some policies are legally required, while others are just a good idea to have to avoid serious financial problems.
Examples of wallpaper wholesalers & distributors insurance policies that should considered include:
- Business interruption
- Commercial auto
- Commercial crime
- Commercial general liability
- Commercial property
- Equipment breakdown
- Officers and directors
- Product liability
- Product recall
- Umbrella/excess liability
- Workers' compensation
These are just some of the types of wallpaper wholesalers & distributors insurance coverage you should consider. Making sure you are properly protected with the right type of insurance is one of the most important things you can do for the success of your business.
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 Wallpaper Wholesalers & Distributors
Property exposure comes from multiple ignition sources, open construction, and the combustibility of stock and packaging materials. Ignition sources include electrical wiring and equipment. All wiring must be well maintained and up to code for the occupancy. Fire, smoke, or water can cause significant damage to the wallpaper. Any supplies that contain flammables 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. 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, 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 customers on trucks owned by the distributor. Goods can be damaged during transit by collision or overturn. While the wallpaper stock would have limited salvage, there would be limited damage to the other supplies.
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. 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 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. Back injuries, hernias, sprains, and strains can result from lifting so workers should be trained in proper lifting techniques and have conveyances available. Forklift and cherry picker 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 Wallpaper Wholesalers & Distributors
Commercial insurers classify wallpaper 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: 5198 Paints, Varnishes and Supplies
- NAICS CODE: 424950 Paint, Varnish, and Supplies Merchant Wholesalers
- Suggested ISO General Liability Code: 10257
- Suggested Workers Compensation Code: 8018
SIC Code 5198 - Paints, Varnishes and Supplies
Here is the official OSHA SIC code description:
Establishments primarily engaged in the wholesale distribution of paints, varnishes, wallpaper, and supplies. Establishments selling to the general public and known as retail in the trade are classified in Retail Trade, Industry 5231.
- Colors and pigments-wholesale
- Paint brushes, rollers, and sprayers-wholesale
Get A Wholesalers And Distributors Insurance Quote
Not all wallpaper 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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