Without distributors and wholesalers, goods from manufacturers can’t reach consumers. These businesses are essential in keeping the economy moving. Risks are lurking in your work as a distributor or wholesaler. And so, it’s important to purchase wholesaler and distributor insurance. Let’s discuss the policies available, their coverage limits, and add-ons.Â
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $2,000,000 | $1,000,000/$2,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 | $2,000,000 | $1,000,000/$2,000,000 |
| Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $2,000,000 | $1,000,000 | $1,000,000 |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $2,000,000 | $1,000,000 | $1,000,000 |
| Tenant’s legal liability coverage limit | $300,000/$1,000,000 | $300,000 | $100,000 | $100,000 | $1,000,000 |
| Waiver of subrogation included? | Yes | No | Included | Can be included | No |
| Hired/non-owned auto liability coverage included? | Yes | No | No | Can be included | Can be included |
| Equipment breakdown floater included? | No | Yes | Yes | Can be included | Can be included |
| Can you get a certificate of insurance online? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Deductible | $0 | $0 | $0 | $0 | $0 |
This comprehensive coverage protects your distributing and wholesaling business from third-party bodily injury or property damage claims. It also covers advertisement injury liabilities such as slander or copyright infringement.Â
Third-party body injuries and property damages
Legal expenses
Advertising injuries and copyright infringement
If your company is sued for third-party bodily injuries
In the event your company is required to foot costs arising from property damage
If your company is accused of stealing someone else's ideas
Liquor liability coverage–This beverage distributor insurance protects you if third parties file a lawsuit after sustaining injuries or property damage due to alcohol intoxicationÂ
Cyber liability coverage–This add-on protects your company from any financial crisis caused by a cyberattack or data breach
The coverage limits for distributors and wholesalers range from $1 million to $5 million or more.
This insurance for wholesale distributors covers you from allegations that a product you sell caused bodily injury or property damage. Costs covered under the product liability insurance for distributors and wholesalers are:
Illnesses caused by the use or consumption of the product you sell or manufacture
Third-party property damages and body injuries
Deaths attributable to the use of a product
Design defects
Marketing defects
Manufacturing defects
Inappropriate or improper warning
Product recall insurance–This add-on protects you if your products are defective and must be recalled from the market under consumer law
Umbrella liability insurance–This add-on acts as an extra layer of protection in the event the liabilities you’re supposed to pay exceed the coverage limit
The coverage limit for product liability insurance for distributors and wholesalers typically starts at $1 million and can go up to $10 million or more, depending on the business and items delivered.
This coverage covers first-party exposures and third-party liabilities arising from external or on-site pollution conditions. This is vital insurance for fuel distributors as it may be tailored to protect you from incurring cleanup costs due to accidental spillage during transportation.
Cleanup cost
Deaths and bodily injuries arising from pollution conditions
Restoration costs of land, water, or air after the release of degrading or hazardous materials
Natural resources damages–This add-on shields you from pollution-related natural resource rehabilitation costs
Emergency response coverage–This add-on aids in protecting you from costs associated with responding to a pollution condition that requires immediate clean-up
Transportation pollution liability–This add-on protects you against environmental contamination charges during hazardous material transportation
Pollution liability insurance for distributors and wholesalers typically offers $1 million to $10 million. Businesses in this industry should examine their risks and work with insurance providers to determine pollution liability insurance coverage levels.
Get all the best quotes from leading providers in a click of a button!
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Building coverage limit (minimum) | $50,000 | $260,000 | $25,000/$500,000 | $25,000 | $60,000 |
| Contents coverage limit (minimum) | $50,000 | $22,000 | $25,000/$500,000 | $25,000 | $60,000 |
| Outdoor signs | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Accounts receivable | Excluded | Excluded | $5,000/10,000 | Included | Excluded |
| Money and securities | Excluded | $2,500 | $1,000 | Included | Excluded |
| Lock and keys | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Business interruption floater | Excluded | Included | Included | Included | Excluded |
| Equipment breakdown floater | Excluded | Included | Excluded | Excluded | Excluded |
| Inland marine insurance floater | Excluded | Excluded | $10,000 | Excluded | Excluded |
| Employee dishonesty floater | Excluded | $5,000 | $2,500 | Included | Excluded |
This commercial insurance for distributors helps pay for your losses from damaged rented or owned business premises and contents. Perils covered are adverse weather conditions such as lightning and floods, fire, theft, and vandalistic acts. It doesn't cover property damage from war, terrorism, or wear and tear. Location, construction design, materials, and fire and theft protection affect your premium costs.
Costs of repairing destroyed/damaged buildings
Costs of repairing and replacing the damaged items contained in the destroyed building, such as office equipment, tools, and inventory
Business interruption coverage–This add-on protects you from losing income and incurring expenses due to a temporary or permanent business shutdown caused by an insured risk
Equipment breakdown coverage–This add-on protects you from incurring losses arising from technical, electrical, or mechanical glitches of equipment or machinery used in day-to-day activities
Spoilage coverage–This insurance covers your losses arising from the spoiling of commodities held under commercial premises
Coverage limits depend on the property's size and value, location, inventory or equipment, and policy terms. Commercial property insurance for distributors and wholesalers often covers $500,000 to $5 million.
