Surety bonds act as a contract between a business, a client, and an insurance company. They guarantee the insurer will reimburse the client if the business fails to deliver contracted services.
Clients want assurance that your wholesale business can fulfill the terms of an agreement. Surety bonds for wholesalers act as a three-way contract between your company, a client, and an insurance provider. If you can’t deliver on your contract, this policy can reimburse your client.
This policy provides liability coverage related to:
If you want to land long-term contracts for your wholesale business, your clients might require you to have a bond in place before you sign an agreement. Some states also require certain businesses, such as pharmaceutical wholesalers and auto dealer wholesalers, to obtain a surety bond as part of their licensing process.
New clients might want a little extra assurance that they can trust your wholesale company to fulfill contractual obligations and meet regulatory standards. A bond boosts your credibility by vouching for your business. If you fail to deliver, your insurance provider can compensate your clients for their losses.
Insurance providers don't write bonds for just any wholesale company. They prefer to write them for established companies with a clean claims history. That’s another reason why a surety bond agreement can help legitimize your company in the eyes of potential wholesale clients.
Talk to a licensed Insureon agent to learn more about surety bonds.
A surety bond provides assurance that your business can reimburse a client when you fail to fulfill a contract, but your small company faces many other risks. Wholesale business owners 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 with employees, workers’ comp can cover medical costs for work-related injuries and illnesses.
Business owner’s policy: This policy combines general liability insurance and commercial property insurance, usually at a lower rate than if the policies were purchased separately.
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.
Are you ready to safeguard your wholesale business with a surety bond or another wholesaler’s insurance policy? Complete Insureon’s easy online application today. Once you find the right policy, you can begin coverage in less than 24 hours.