Starting and maintaining a wholesale operation is hard enough, which makes wholesale business insurance all the more crucial so that you won’t have to worry about the if’s, and’s, and but’s in the case of a sudden unforeseen event. Every business faces potentially crippling losses and wholesale business insurance can provide business owners with peace of mind.
Insurance for wholesale business can protect against a slew of different types of risks. The primary aspects of a business insurance policy catered to a wholesale business include defenses against business property losses, business crime, and business liabilities.
Business Property Insurance
Avoid being blindsided by the costs of theft, the natural elements, or other unexpected events. Options for business property insurance include:
- Building coverage: Insure against damage to your wholesale business’ physical locations that is caused by a natural disaster or catastrophe. Insurance can help your company get back on its feet and return to business as usual while minimizing your business’ financial losses.
- Business personal property coverage: Insure against the loss of the contents of your business’ warehouse or physical locations in the event of a fire or other catastrophic event.
- Transportation and cargo coverage: This option provides cover in the case that your goods, while in transit, are damaged, stolen, or lost.
- Business interruption coverage: Keep your wholesale business running with accessible funds after a tragic or catastrophic event to your company. Business interruption insurance can help provide you with income while your business rebuilds. This way, you can continue to pay your employees and for your operating costs to keep your business from going under. This option could also protect against an interruption due to events involving suppliers or clients.
- Other coverage for physical property: Wholesaler insurance can protect against the costs to replace or repair other physical property belonging to your business. Computer coverage protects against the costs of repairing or replacing computers, computer parts, software, and electronic media needed for your business. This type of insurance can also cover the cost of an equipment breakdown or against cracks and scratches to your business’ storefront window. Coverage also exists for outdoor signs and fences, trees, shrubs, and plants in the case of fire damage, lightning damage, or other disaster.
Business Crime Insurance
Wholesalers, especially ones with physical locations and stores, should all be concerned about the possibility of a robbery or of a financial crime committed against them. Business crime insurance can help protect against losses in the case of a theft or embezzlement. Coverage options usually include:
- Employee theft coverage: Recoup losses if you discover that one or several employees have been stealing money or goods from your business.
- Money and securities coverage: Don’t let a robbery be the death knell to your wholesaling operation. Recover your losses with insurance that protects against both inside losses (from employees) and outside losses (from the general public).
- Counterfeit paper currency coverage: Imagine being paid for a big wholesale order and discovering that you were given hundreds or thousands of dollars in counterfeit bills. Insurance can provide you with funds when you’re faced with this disheartening situation.
- Forgery coverage: Protect against rogue accountants and bookkeepers in the case that one illegally or unfairly withdraws money from your business account or takes money from you.
Business Liability Insurance
Business liability insurance can help your wholesale business persevere through trying times in the case of a lawsuit or legal claim against your company. Lawsuits, claims, and grievances can present themselves due to mistakes, injuries, or accidents involving your business’ employees or its goods and services. A wholesaler unprotected against liabilities risks facing a legal challenge that could spell doom for the business. Coverage options may include:
- Premises and operations coverage: Your business could be liable for damages when someone injures him/herself at any of your business locations. A physical injury, such as a slip and fall, could result in the business being liable for thousands of dollars of hospital and medical bills. This option covers damages your business would have to pay in such a situation.
- Products and completed operations coverage: Your wholesaling operation could be forced to pay for damages should a client be physically harmed or become ill in the use of your goods or services. This coverage protects against those damages.
- Personal and advertising injury liability coverage: Legal claims may surface from accusations that you have falsely advertised your goods or services, or that an employee or customer is injured due to your negligence. Expenses for challenging these claims could become outrageously expensive.
- Employment practices liability: This option protects against lawsuits that rise in the case that entities within your business, such as you, business managers, or employees, are accused of discrimination, harassment, wrongful termination, or other wrongdoings related to employment.
- Employee benefits liability coverage: Protect against mistakes or errors that may occur over your business’ employee benefits program.
- Product liability coverage: Recoup losses should your wholesale business have to recall a covered product due to defects. Defend your company against safety claims, spoilage costs, and medical costs if your product has made people ill.
Shopping for Wholesale Business Insurance Wisely
When you are given a quote, or engage in talks with an insurance agent, be sure to ask plenty of questions and to make sure you are clear on what your policy would include. Wholesale business insurance, like other types of insurance such as car or life insurance, is not one-size-fits-all and is customizable exactly to fit each business’ needs. No two insurance policies are exactly alike so it is crucial to gain a complete understanding of the details within your insurance policy.
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