Wholesalers and Distributors Insurance
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General liability insurance for wholesalers and distributors

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General liability insurance

General liability insurance covers common business risks like customer injury, customer property damage, and advertising injury. It protects your small business from the high costs of lawsuits and helps you qualify for leases and contracts.

General liability covers common risks

When dealing with claims of customer injuries or property damage, libel or slander, small wholesale businesses turn to general liability insurance. This policy can pay legal expenses for the most common third-party lawsuits.

This policy provides liability coverage related to:

  • Customer injuries
  • Customer property damage
  • Harm caused by a product
  • Libel and other advertising injuries

Bundle policies to save money and increase security

If you run a small wholesale business, you may be able to bundle general liability insurance with commercial property insurance in a business owner’s policy. A BOP often costs less than purchasing each policy separately. Wholesalers 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 business.

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What coverage can general liability provide for wholesale companies?

Client injuries

If a client or delivery person slips and falls at your wholesale warehouse or office, there’s a chance you could be blamed for the injury. If the person files a lawsuit, you might have to pay for medical expenses – plus the cost of hiring a lawyer. General liability insurance can help pay for:

  • Medical bills
  • Attorney’s fees
  • Court-ordered judgments
  • Funeral expenses in fatal incidents

It’s important to note that this policy does not cover employee injuries. For that, you’ll need to carry workers’ compensation insurance.

Client property damage

Because wholesalers deal with large quantities of products, damage to client property during a delivery is always a risk. If a delivery driver accidentally bumps into a client’s glassware display and knocks it over, your general liability policy could pay for the cost of replacing it. It could also help with legal costs if a client files a lawsuit over damaged property.

Harm caused by a product

As a wholesaler, you might face a lawsuit if a product harms a customer. For example, if a lotion that you sell causes a painful rash, affected customers could sue your business. Most general liability policies include product liability insurance, which covers risks related to the products you sell. Wholesalers should check with an agent to make sure their policy includes this coverage.

Advertising injuries

General liability insurance is an important policy for any business that advertises. While advertising your wholesale company and its products, you could inadvertently copy another company’s slogan or logo. If you or an employee talks or writes about a competitor, your wholesale business could also be charged with defamation. General liability insurance covers advertising injuries including:

  • Written defamation (libel)
  • Spoken defamation (slander)
  • Copyright infringement

Other important policies for wholesalers to consider

While general liability insurance covers many common risks, it does not offer complete protection. Employee injuries or damage to business property can occur at any small business. Other insurance policies for wholesale business owners to consider include:

Workers’ compensation insurance: Required in almost every state for wholesale businesses that have employees, workers’ comp can cover medical expenses for work injuries.

Business owner’s policy (BOP): This policy combines general liability insurance and commercial property insurance, usually at a lower rate than if the policies were purchased separately.

Commercial umbrella insurance: Similar to excess liability insurance, this policy boosts coverage on a wholesaler’s general liability, employer’s liability, and commercial auto insurance policies.

Commercial auto insurance: This policy covers vehicles owned by your business. It typically pays for accidents and damages related to theft, weather, and vandalism.

Cyber liability insurance: Cyber insurance helps your business recover financially from data breaches and cyberattacks.

Surety bonds: This bond assures a wholesale business’s clients that an insurance company will reimburse their losses if the business fails to fulfill a contract.

Get free quotes and compare policies with Insureon

Are you ready to safeguard your wholesale business with general liability insurance, a business owner’s policy, or another policy? Complete Insureon’s easy online application today. Once you find the right policy, you can begin coverage in less than 24 hours.

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Updated: September 22, 2022
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