The Importance of Wholesalers Insurance in the GTA
Wholesalers in the Greater Toronto area face a wide range of challenges and risk factors in business. In fact, depending on your transportation, logistics, workers, and equipment you use, you could face risks unique to your company. It is very important to have the right wholesalers insurance coverage in order to fully protect your business and your financial future. You never know when a disaster will come knocking on your door, and here is an example.
Several years ago, David S saw the need for more grocery distribution services. He started a company that specialized in perishable items like produce and frozen foods and David had a flair for business. In the beginning he had one warehouse, two trucks, and a crew or four workers. As his business grew, he eventually bought an entire fleet of trucks and hired an additional 18 employees. David’s company delivered to more than 40 customers in the GTA.
Last year, during the Canada Day holiday, it was very hot and humid, and a large storm developed over Ontario. The rains came down in torrents for several hours and this caused a large flash flood that completely enveloped David’s warehouse (which was full of frozen foods at the time).
Not only was there significant flood damage, but the power was off for many hours also. Needless to say, the loss to David’s business was significant. David suffered flood losses, spoilage, and business interruption losses for many thousands of dollars. Fortunately, just two weeks before, he went to his insurance agent for an annual review and the agent recommended adding flood coverage to his distributors insurance policy. David didn’t want to pay out additional money, but his agent convinced him it was in his best interests. If not for this decision, he could have faced major losses. Fortunately, his policy covered all the losses and kept him in business.
What is Wholesale Distribution Insurance?
If you are a product middleman, you have specific insurance requirements. You need to protect all your risk factors, including those of your property, products, workers, equipment, and vehicles. This insurance is designed to fill those needs.
Who Needs Wholesalers Insurance?
Insurance for wholesalers is for any company distributing products to customers for resale. It doesn’t matter if you only have a small warehouse with one truck or you service all of Canada. You need this coverage.
Standard coverage options for a wholesale distribution company may cover:
- Commercial property coverage – this may include your offices, warehouses, or any other structures your business owns or operates. Even if you are leasing, you need to make sure you have the contents fully insured.
- General liability insurance – Your wholesale distribution insurance policy should include liability issues like injury claims on your property. It also protects your business from certain kinds of accidents involving the general public or private property.
- Commercial vehicle insurance – Do you own several trucks? Maybe your hire your carriers and rent your trailers. Are your trucks refrigerated? In Ontario you need to have the minimal liability insurance and you should have coverage like collision and comprehensive also.
- Cargo insurance- also called inland marine coverage. It protects your equipment and products while they are on the road.
- Business equipment – if you own power jacks, lift trucks, clamp trucks, tow tractors, refrigeration equipment, or tools, they need to be protected from damage and theft.
- Office content – can include computer systems, printers, furniture, and copier machines.
Options for Wholesalers Insurance
Your insurance options will depend on your business risk factors. For example, what kinds of products do you distribute? Are they perishable? Are the fragile? How large is your operation and what kind of delivery services do you provide? These factors and others will determine your insurance needs. Here are some options you may consider:
- Business interruption insurance
- Umbrella insurance policy
- Trade credit insurance – protects accounts receivable from losses. If a supplier owes you a lot of money and suddenly goes out of business, this will reimburse you for the loss.
- Product recall insurance
- Life insurance (for you or business partners)
Why You Need Customized Wholesale Distributors Insurance
You have specific business risks that you need to cover and they could be much different than your competitors or other distribution businesses in the Greater Toronto area. If you take out a standard business policy, you could have a number of gaps in your coverage and this could cost you dearly. Multi risk Insurance Brokers Ltd is there to make sure you have coverage specifically designed to protect all your business interests now and in the future.
Multi risk Insurance Brokers Ltd is not an insurance agency representing a single insurance company. In fact, we are independent brokers who do not work for an insurance company. We work for you. We have access to many of Canada’s best insurers so we can give you the best possible wholesale distribution insurance for the lowest possible premiums.
We also offer professional risk management services to help you fully cover all the risks your company faces. Let us take all the work and hassle out of shopping and comparing insurance policies. We are here to do all that for you and to make your life easier.
To get info about a retail business insurance quote, fill out our simple quote form and we’ll contact you about a quote. You may also call us at 416-224-2800.