- Business owner’s policy
A business owner’s policy (BOP) bundles general liability insurance with commercial property insurance. It typically costs less than if the policies were bought separately.
BOP insurance bundles policies to protect wholesalers
Wholesalers buy in bulk to keep costs low – the same principle behind a business owner’s policy. A BOP bundles general liability insurance and commercial property insurance, usually at a lower rate than purchasing both policies separately. A wholesaler typically has a warehouse and a large amount of inventory, which makes both policies a worthwhile investment. A BOP protects against:
- Damage to inventory, equipment, and other business property
- Customer injuries and property damage
- Copyright infringement and other advertising injuries
Tailor a BOP to fit your business
Wholesaler business owners can customize a BOP to meet their specific needs. Useful add-ons include business interruption insurance, which could cover your operating costs if a fire at your warehouse or other disaster forces your business to temporarily close.
Businesses that are eligible for a BOP typically:
- Have fewer than 100 employees
- Have a small office or warehouse
- Make less than $1 million in annual revenue
- Operate in a low-risk industry
- Need less than 12 months of business interruption insurance
Talk to a licensed Insureon agent to find out if a BOP fits your wholesale company.
What coverage can a business owner’s policy provide for a wholesaler?
Damaged or stolen business property
The commercial property insurance included in a BOP protects:
- Warehouse inventory and equipment
- Office furniture and fixtures
- Your building if you own it
Commercial property insurance protects your property from damaging events like fire, burst pipes, theft, and vandalism. If your wholesale business does not qualify for a BOP, it’s worth purchasing commercial property insurance as a standalone policy if your livelihood depends on your inventory.
Client injuries and property damage
The general liability portion of a business owner’s policy can pay for expenses related to customer injuries or property damage, including legal bills from a lawsuit. For instance, it can offer coverage if:
- A client trips over merchandise at your warehouse and breaks a leg
- Your delivery person knocks over a shop’s glassware display
The general liability portion of a BOP also offers coverage against advertising injuries, including:
- Written defamation (libel) and spoken defamation (slander)
- Copyright infringement
For example, if a wholesale company’s office clerk posts a negative review about a rival wholesaler and your business is sued for libel, general liability insurance could pay for the resulting legal expenses.
If your business is forced to temporarily close, it could result in lasting financial damage. Business interruption insurance shields your wholesale business from lost revenue and other expenses related to closure caused by a covered loss.
For example, your wholesale business may need to close for a few weeks after a windstorm topples a tree onto your warehouse. Business interruption insurance would cover lost profits and normal operating expenses, allowing you to pay your employees and survive a disruptive event.
Other important policies for wholesalers to consider
A business owner’s policy provides general liability and property protection for wholesalers, but it doesn’t protect against employee injuries and other risks. Wholesale distributors should also consider:
General liability insurance: This policy can pay legal expenses related to customer property damage and injuries, along with advertising injuries such as slander.
Workers’ compensation insurance: Required in almost every state for wholesale businesses that have employees, workers’ comp can cover medical costs for work-related injuries and illnesses.
Umbrella insurance: Also called excess liability insurance, this policy boosts coverage on a general liability, employer’s liability, or commercial auto insurance policy once the coverage limit is reached.
Commercial auto insurance: This policy covers vehicles owned by your business. It typically pays for accidents and damages related to theft, weather, and vandalism.
Surety bonds: This bond assures a wholesaler’s clients that its insurance company will reimburse their losses if the business fails to fulfill the terms of a contract.
Get free quotes and compare policies with Insureon
Are you ready to safeguard your wholesale business with a business owner’s policy? Complete Insureon’s easy online application today. Once you find the right policy, you can begin coverage in less than 24 hours.