To properly protect any business from a hazard that could potentially be quite costly, it’s vital to get the right amount of insurance coverage. Appropriate cover should be comprehensive enough to thoroughly protect your business, so that in the event of a lawsuit or catastrophe, your business will be able to continue on. However there are a number of over-reaching policies available that are extremely expensive and contain coverage that you won’t need. A good insurance agent knows the right balance of coverage your individual business needs.
Like many other businesses, Wholesalers face their own risks that are typical to the trade, in particular, risk of fire, theft, and burglary. Because they store the product as well as deliver it, Wholesalers face a number of risks. This video from Vero gives insight into the specific risks that Wholesalers are exposed to: http://www.vero.com.au/vero/understanding-business-risks-wholesaler-video
Internal and external theft is a major concern for any wholesaler. Cargo theft costs distribution companies tens of billions of dollars a year and shows no signs of slowing. Whatever the cargo, there are thieves trying to steal it, and all too often, they succeed.
Furthermore, while most businesses hold a certain risk of fire, this risk is of even higher concern to wholesalers, who may lose their entire stock in the event of a fire. This is particularly prevalent for Wholesalers who deal in foods, because if there is a fire contained to a small corner of the warehouse, all of the stock is considered contaminated and must be destroyed. It cannot be sold.
Similarly, if there is a storm that causes water damage, all stock would be lost. Water and storm damage is one of the most common claims for wholesale distributors because their standards are so high, even a small amount of water damage would require the entire lot be thrown out.
Besides the risks due to fire, water, and theft, wholesalers have a myriad of risks to consider. Some have stock that needs to be refrigerated and if the cooling units broke down, there would be a loss of stock. There are vehicles, property, and employees, all of which need proper protections.
A comprehensive Wholesalers Insurance policy may include:
- Property Insurance. Property Insurance covers your property against fire, storms, cyclones, impact, water, and malicious damage. This not only covers the building structure but its contents as well.
- Public Liability. Public Liability Insurance provides protection against legal and court costs in the event that someone is injured, or has their property damaged while you are providing a service to them.
- Product Liability. Product Liability Insurance protects against lawsuits from illness or death resulting from a product you provide. As a food wholesaler, you are at risk if someone becomes ill after consuming the food you distribute. Even if the product became tainted before it came to you, you could still be responsible for it.
- Theft. As a wholesaler, your products are particularly vulnerable to theft. Theft is an increasing problem in the transportation industry. This can be theft from within your warehouse or from truck drivers while they’re picking up or delivering the product. There are many vulnerabilities along the way.
- Business Interruption. This coverage protects the company if the day-to-day business is interrupted due to fire, storm, etc. While Property Insurance will cover the cost to repair or replace the building, Business Interruption Insurance helps pay for lost wages and bills for the duration of the closure.
- Machinery. This coverage would protect against machinery that is damaged or broken down which is particularly important when dealing with perishables.
- Transport Insurance. Transport insurance provides cover for your commercial vehicles against theft or accident anywhere in Australia.
The best way to find out what insurance coverage would be the perfect fit for your business, call one of our professional, well-versed brokers at PSC Direct. We’ll customize a Wholesalers Insurance policy that will be the right coverage for your business.
Wholesalers Insurance is a specialised business insurance for businesses who sell foods and products on the wholesale market.