Depending on the specifics of your wholesale business, you may need any of the following types of business insurance.
General Liability Insurance offers baseline protection for businesses in all industries. For wholesalers, General Liability Insurance protects against claims of property damage and physical injury. If, for instance, a client or associate sued you alleging that he or she was injured on your premises, you could face an expensive lawsuit and potentially damages.
General Liability Insurance pays benefits to cover both your legal costs and any awards you are responsible for paying, up to the limits of your policy. This can be invaluable, considering that legal costs associated with a lawsuit can easily range into the tens of thousands of dollars and higher: attorney’s fees, court costs, docket fees, settlement costs, and more.
A General Liability policy can prevent you from losing the time and money it takes to defend yourself against legal accusations: in addition to paying for court costs, many General Liability policies also assign a company-appointed attorney to your case, saving you the hassle of finding legal representation. This also allows you to return to work quickly rather than spending hours figuring out the details of your defense.
Your insureon wholesaler agent can help you determine what General Liability policy limit is appropriate to protect your business.
Whether you maintain a warehouse or store your goods elsewhere, protecting your property is essential to keeping your business profitable. Property Insurance offers coverage for the assets related to your business. In the event of a storm, fire, theft, or other source of damage to your goods, your Property Insurance kicks in to provide you with the funds necessary to repair or replace your stock.
In the event of seriously damaging events, adequate Property Insurance can make a major difference in a wholesaler’s ability to stay profitable, maintain cash flow, and continue serving partners and customers. Depending on where in the country you live and what kind of premises you use for your business, your Property Insurance needs will vary. Your insureon wholesaler agent can help you determine what coverage levels will sufficiently protect your business.
Umbrella Insurance allows wholesalers to extend their coverage limits on one or more existing insurance policies. Umbrella coverage (also known as Excess Liability Insurance) provides a sort of reserve of insurance coverage that takes effect if and when you face damages that exceed the limits of another of your policies.
For instance, if you are found liable for $750,000 in injury or property damages and your General Liability coverage only offers $500,000 in protection, your Umbrella Insurance would cover the remaining $250,000. Without Umbrella Insurance in place, you would be responsible for paying the remaining $250,000 from your own personal funds.
Umbrella Insurance can be used to extend the coverage limits on several policies simultaneously and is typically less expensive than extending coverage on each policy individually. Ask your wholesale agent at insureon whether Umbrella Insurance might be a wise way to protect your business.
In most states in the U.S., Workers’ Compensation Insurance is mandatory to some extent, though the specific laws differ from one state to the next and from one type of business to the next. Even sole proprietors are required to carry Workers’ Compensation Insurance in some states.
Workers’ Compensation coverage works by providing coverage in the event that one of your employees becomes injured or sick during the course of doing his or her job. If your employee should sue you for coverage of illness- or injury-related expenses, your Workers’ Compensation Insurance takes effect.
It pays not only for the legal costs of defending yourself in court but also for any fees, fines, judgments, or settlements you are found liable for paying, up to the limits of your policy. Many Workers’ Compensation policies also provide benefits for lost wages, meaning they will pay the wages for employees who are unable to work because of their injury or illness.
Depending on your individual circumstances, you may be able to save money on your premiums by excluding yourself from your Workers’ Compensation coverage; however, this is not always a wise business decision. Your insureon wholesaler agent can help you determine what kind of Workers’ Comp coverage you need.
In the event of property damage, you will be able to receive compensation from your insurance provider more quickly if you have extensive documentation of your inventory, its condition, and the damage done to it. Photographing inventory and any damage to it can be invaluable during the claims process.
If something happens to one of your suppliers, you could be without goods for as long as the interruption or problem lasts, which could be disastrous for your business. Establishing a friendly relationship with backup suppliers and other partners gives you an option for keeping your business running even when unexpected events throw a wrench in normal operations.
