Every small business needs insurance, even if they do everything possible to protect themselves from loss and lawsuits. Retail stores are no different, and their steady stream of customers increases their exposure to certain types of risks. Your ability to quickly identify your client's specific insurance needs and find them suitable coverage will make you a valuable asset in their risk management planning.
As you are already aware, no policy covers everything. Your wholesale clients will need different coverages to protect their business from potential losses. Here are some policies that address the risks wholesalers face:
General Liability Insurance
If your client's associate visits their distribution center and suffers an injury, your client can lose time and money in the subsequent lawsuit over medical expenses. General Liability Insurance covers the cost of investigating and defending against third-party claims of bodily injury and property damage. It can pay for court costs, legal defense fees, and judgments or settlements.
Chances are your wholesale client has a warehouse or distribution center that is full of inventory, equipment, and supplies that are crucial to their business. Property Insurance protects these business assets, paying to repair or replace them if they are damaged in a covered incident. Typically, covered events include fire, theft, wind damage, and vandalism.
Workers' Compensation Insurance
Some degree of Workers' Compensation Insurance is mandatory in almost every state. This coverage protects your wholesale client in the event their employee suffers an occupational illness or injury. Say an employee can't work because of a back injury related to lifting heavy boxes. Workers' Compensation covers the employee's medical bills and lost wages. Most Workers' Comp plans also have liability coverage for legal expenses if your client is sued over the work accident.
Commercial Auto / Hired & Non-Owned Auto Insurance
Wholesalers and distributors likely use a fleet of vehicles on a regular basis, making Commercial Auto / Hired & Non-Owned Auto Insurance an important coverage for your client. Commercial Auto covers the vehicles your client has registered in their name or the name of their business. HNOA offers their business liability protection when it's sued over accidents in leased, rented, or borrowed vehicles.
Umbrella Liability / Excess Liability Insurance
Umbrella Insurance, also called Excess Liability coverage, is a smart way for your wholesale client to boost their protection. Your client can make a claim on their Umbrella policy when a lawsuit exceeds certain other policy limits. Namely, Umbrella coverage can be applied to their General Liability, Hired and Non-Owned Auto, and Employer's Liability Insurance (part of most Workers' Comp plans). For instance, if your client has $1,000,000 of General Liability coverage but is found liable for $1,500,000 worth of damages, their Umbrella policy can cover the difference. Umbrella Insurance is usually more cost effective than raising individual policy's limits.