As a wholesaler or distributor, your business is distributing end products to retailers. You acquire goods from a manufacturer, farmer, or miner, hold them in your distribution centre or warehouse, and then deliver them to retailers for sale.
During the flow of goods from you to your consumer, there’s a lot that can go wrong. To safeguard and manage your risks, it’s imperative you have wholesaler insurance in place. With wholesale insurance, if something goes wrong or an unforeseen issue should happen, your business is not adversely affected, which can be costly, stressful and damaging.
Phoenix Insurance Brokers know that as a wholesaler, your expertise lies in distributing to retailers. Our expertise is in providing customers with the best insurance policies for their particular wholesale business. We are also experienced in all business insurance options and can work with you to assess your insurable risks and give you peace of mind that your business is protected.
Common Risks for Wholesalers and Distributors
There’s a lot at risk when it comes to wholesale businesses. You have a warehouse to manage, transport and logistics to oversee, staff to manage, office equipment and software to run, cyber risks to control, potential damage to stock and so on.
The most common risks wholesalers and distributors encounter relate to:
- Building and contents
- Public liability
What Sort of Insurance Should a Wholesale Business Consider?
Depending upon what your business wholesales will determine what you need to insure.
Usually, wholesalers insurance includes:
- General liability insurance
- Workers’ compensation insurance
- Business Insurance
General Liability Insurance
General liability insurance provides public liability coverage for claims including customer injury, property damage, libel, or slander, i.e. common third-party lawsuits.
- Customer injuries: If a delivery person or a sales representative trips and injures themselves on your premises, they could hold you responsible for their injuries. If they file a lawsuit, you may have to cover their medical costs and their legal fees. General liability insurance could help you pay for medical bills, legal fees and even funeral costs if the injuries result in death.
- Customer property damage: As a wholesaler, you could be delivering large quantities of products to your customer and, in the process, accidentally damage their property. If your product has caused accidental damage, general liability insurance could pay for the damages or replacement costs. It could also help with legal costs if a customer files a lawsuit.
- Harm caused by a product: If harm has been caused by your products, liability insurance can protect your business. Most general liability policies include product liability insurance, which covers risks related to the products you sell. For example, if a cleaning product burns someone’s skin, you are legally liable.
Workers’ Compensation Insurance
All businesses are required to have workers’ compensation insurance in place for employees in case a worker is injured while at work. This is because the business will be required to cover their medical expenses and continue paying them whilst they are unable to work.
Business insurance provides financial cover for your business and can protect you from a range of general risks, including theft, equipment breakdown, business interruption, product issues, and damages to your premises and contents.
- Theft: Covers the loss of contents and stock from theft either on your premises, whilst in transit and from employee dishonesty.
- Property contents: Covers you if your business property is damaged or destroyed by fire, storms, and other disasters.
- Equipment breakdown: You are covered for the financial cost of repairing or replacing equipment that’s broken down.
- Deterioration of stock: If your warehouse fridge or freezer breaks down due to an electrical fault, the insurance company covers the ruined stock.
- Business interruption: Insurance companies can cover your operating expenses should your business be interrupted, for example, during a power loss or flooding.
Find the Right Wholesaler Insurance for Your Business
Finding the best wholesale insurance can be time-consuming; that’s where your local Phoenix Insurance Broker can help.
With over 30 years of operating in various insurance markets, our brokers are experienced in assessing claims and potential exposures across businesses. They can work with you to develop risk solutions for your business that are flexible and suited to your financial circumstances.
Phoenix Insurance Brokers can find insurance policies that are right for your business and even package multiple policies together so you only pay one premium that can be spread over a year to assist with cash flow. Your Phoenix Broker will also work with you to ensure your wholesale insurance updates as your business develops, ensuring you stay covered as your business grows.
Contact Phoenix Insurance Brokers today to find the right insurance policy for your business.
Frequently Asked Questions
Wholesaler insurance is specialised business insurance designed to protect a wholesaler’s stock and property against loss or damage due to fire, accidental damage, theft or third-party liabilities.
Any wholesalers who want to protect their assets and livelihood should consider getting wholesaler insurance to ensure they are covered in case of accidents or losses that could otherwise cause financial hardship.
At Phoenix Insurance Brokers, we specialise in providing a comprehensive range of business insurance services, including public liability insurance, workers’ compensation insurance, and more, tailored to meet the unique needs of your business.
Having wholesaler insurance gives you peace of mind that your stock and other assets will be protected from unexpected losses or damages so that you can continue operating your business without interruption or financial strain.