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Wholesaler Distributor Insurance

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Beverage Wholesaler Distributor Insurance Policy Information

Beverage Wholesaler Distributor Insurance

Beverage Wholesaler Distributor Insurance. Beverage wholesalers receive packaged goods from foreign or domestic manufacturers or bottling plants for distribution to grocery stores, restaurants, concession stands, and other retail establishments. The distribution center may be open 24 hours a day. Generally, the product is delivered to the customer on the distributor's vehicles.

As a beverage distributor, you supply a variety of drinks (juice, water, soda, etc...) to various types of clients (restaurants, hotels, bars, etc).You offer an invaluable service to your clients; without you, they wouldn't be able to provide their patrons with beverages.

While your business is important, and despite the fact that you go out of your way to make sure everything operates safely and properly, sometimes unforeseen circumstances arise.

Accidents, fires, vandalism; these are just some of the things that can go wrong. As the proprietor of your company, you are responsible for any accidents, damages, and liability claims that may be made against you.

The costs that may be associated with any unforeseen circumstances that may arise can be exorbitant. If you have to cover these expenses yourself, you could end up facing serious financial turmoil.

That's where beverage wholesaler distributor insurance comes in; instead of having to pay for these expenses out of your own pocket, your insurance carrier will assist with the expenses.

In other words, beverage wholesalers distributors insurance can help you avoid significant financial losses. Furthermore, insurance is a legal requirement in most states; if you aren't properly insured, you could end up facing stiff penalties and hefty fines - you may even lose your business.

Beverage wholesaler distributor insurance protects your business from lawsuits with rates as low as $47/mo. Get a fast quote and your certificate of insurance now.

Below are some answers to commonly asked beverage wholesaler & distributor insurance questions:


How Much Does Beverage Wholesaler Distributor Insurance Cost?

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small beverage wholesaler distributor businesses ranges from $47 to $79 per month based on location, size, revenue, claims history and more.


Why Do Beverage Wholesalers And Distributors Need Insurance?

Wholesaler Distributor Insurance

Like any business in any industry, there are several risks associated with owning and operating an beverage wholesale distribution center. Your property and the inventory within it could be damaged by a fire or a flood.

A vendor could be injured while making a delivery on your property. A client could file a lawsuit against you, claiming that you sold them a defective product that damaged their property. An employee could sustain a work-related injury.

These are just some of the scenarios that could occur, and as the owner and operator of your company, you would be held liable for the damages; damages that could cost an exorbitant amount of money. If any lawsuits are filed against your company, you would also be responsible for the legal fees.

These expenses could be financially crippling and could ultimately lead to the loss of your livelihood - and even your personal property.

With the right type of beverage wholesaler distributor insurance coverage, you would be protected from potential financial losses. Should a client file a lawsuit against you, your insurance company would help to cover the cost of legal defense fees and settlements.

If your property is damaged in a fire, your carrier would assist with the cost of repairing and replacing the damages.


What Type Of Insurance Do Beverage Wholesalers And Distributors Need?

It's important to find out what type of beverage wholesaler distributor insurance coverage bare required in your local area; however, in most areas, examples of some of the forms of coverage businesses in this industry require include:

  • Business Auto - If you use any trucks, vans, or other vehicles to make deliveries or conduct business, you'll need commercial auto insurance.
  • General Liability - This type of coverage protects you from third-party personal injury and property damage claims; if a vendor slips and falls on your property, this type of policy.
  • Commercial Property - To protect your warehouse from storm-related damage, fire, vandalism, and theft, you'll need to carry commercial property insurance. This policy covers any damages that your warehouse may sustain, as well as any of the contents within it.
  • Workers Compensation - You'll also need to invest in workers' comp insurance, which covers the cost of any injuries or illnesses that an employee may sustain while working, including necessary medical expenses and wages that he or she may lose while recovering.


These are just some of the types of beverage wholesaler distributor insurance coverage you should carry. You can carry individual policies, or opt for a commercial package policy that combines several different types of coverage under a single policy.

Beverage Wholesale Distributor's Risks & Exposures

Wholesale Distribution Insurance

Premises liability exposure is generally limited due to lack of public access to the storage facilities. If customers pick up goods, loading docks must be clearly marked and user-friendly. Customers should be confined to specific areas that are kept clean, dry and free of obstacles.

Contracts with transportation and storage providers may expose the operation to additional liability. Railroad sidetrack agreements pose additional concerns. If there is a railroad sidetrack or dock, an employee must verify that no one is in the path of an incoming or outgoing train.

Railroad tracks and conveyors can be attractive nuisances. The premises should be enclosed by fencing with "No Trespassing" signs posted.

Products liability exposure is low if products are all from domestic manufacturers. All products should be dated and stored as required by the manufacturer to allow easy access in case of recall.

Environmental impairment exposure can be high due to ammonia and other refrigerants and fuel tanks used to service vehicles. All underground tanks and pipes should be routinely tested for leakage. Spill procedures must be in place to prevent the accidental discharge of contaminants.

Contracts should be in place to dispose of all environmentally dangerous chemicals. Record keeping is critical.

Liquor liability exposure is low if tours are not permitted and samples are not given out. All serving of alcohol must comply with state and federal regulations. Employees must be trained to recognize signs of intoxication.

Workers compensation exposure is very high. Lifting injuries such as back pain, hernias, sprains and strains are common so workers should be trained in proper lifting techniques and to use conveyances. Forklift operators must be properly trained.

Shelving must be stable to prevent stored goods from falling onto workers. Leaking ammonia is a serious health hazard that can lead to lung damage or even death.

Protective breathing equipment must be available to all workers in the event of any ammonia leak. Floor coverings or coatings may be slick and accumulate condensation, posing slip and fall hazards. Housekeeping is critical.

To avoid frostbite and hypothermia resulting from exposure to sub-zero temperatures, the length of time spent in refrigerated areas must be limited, and protective clothing required.

Property exposure comes from multiple ignition sources, open construction, and the combustibility and the damageability of the beverage and packing materials. Ignition sources are from electrical wiring, equipment, and refrigeration units.

All wiring must be well maintained and up to code for the occupancy. The age, condition and maintenance of coolers and refrigeration equipment are important to review.

Ammonia leaks could cause an explosion. There should be detection systems, emergency shut-off valves, and exhaust systems to allow venting in the case of a leak. Ammonia pipes should run outside the building to prevent accidental collision with forklifts inside the building, and have impact barriers around them to prevent contact with vehicles.

Alarms should be in place to warn of power outage or shutdown. Backup generators should be available in case of equipment failure.

Good housekeeping and fire controls are critical. Smoking should be prohibited. Even a small loss can cause all stock to be condemned by the FDA due to possible heat, smoke or water contamination. If there is a sprinkler system, heads must be located high enough to avoid accidental contact with forklifts. Recharging of forklifts and maintenance of vehicles should be done in a separate, ventilated area away from combustibles.

Beverage may be a target for thieves. Appropriate security controls must be taken including physical barriers to prevent entrance to the premises after hours and an alarm system that reports directly to a central station or the police department.

Business income and extra expense exposures are high. Recovering from a loss could require a lengthy time to rebuild the facility and purchase replacement refrigeration equipment. Business income from dependent properties is a concern because most beer distributors work with only one manufacturer.

Equipment breakdown exposures are significant as temperatures must remain constant for refrigeration equipment. All equipment must be inspected and maintained on a regular basis. Backup generators should be available. Additional coverage for spoilage and ammonia contamination should be considered as even a small power interruption could result in a large loss.

Crime exposure is from employee dishonesty. This operation involves a number of transactions and accounts that can be manipulated if duties are not separated. Background checks, including criminal history, should be performed on all employees handling money.

Regular audits, both internal and external, are important in order to prevent employee theft of accounts. Physical inventories should be conducted at least annually.

Inland marine exposure is from accounts receivable if the distributor offers credit to customers, computers for tracking inventory, contractors' equipment, goods in transit, and valuable papers and records for manufacturers' and customers' records. Duplicates must be kept of all data to permit easy replication in the event of a loss. Contractors' equipment includes forklifts, cherry pickers, and hand trucks used for moving stored items.

While goods may come to the warehouse via common carriers or trains, goods are generally delivered to retailers on trucks owned by the distributor. Goods in transit are subject to breakage losses from collision or overturn. Due to the potential for theft, vehicles should be unmarked, have alarms and be attended at all times.

Commercial auto exposure comes from the salespersons' fleet and delivery vehicles. There should be written policies on personal and permissive use of any vehicles provided to employees. All drivers must be well trained and have valid licenses for the type of vehicle being driven.

MVRs must be run on a regular basis. Random drug and alcohol testing should be conducted. Vehicles must be well maintained, including refrigeration systems, with records kept in central locations.

Commercial Insurance And Business Industry Classification

  • SIC CODE: 5149 Groceries and Related Products, Not Elsewhere Classified
  • NAICS CODE: 424990 Other Grocery and Related Products Merchant Wholesalers
  • Suggested ISO General Liability Code(s): 10141
  • Suggested Workers Compensation Code(s): 8018

Description for 5149: Groceries and Related Products, Not Elsewhere Classified

Division F: Wholesale Trade | Major Group 51: Wholesale Trade-non-durable Goods | Industry Group 514: Groceries And Related Products

5149 Groceries and Related Products, Not Elsewhere Classified: Establishments primarily engaged in the wholesale distribution of groceries and related products, not elsewhere classified. Establishments primarily engaged in the wholesale distribution of soft drinks, and in bottling and distributing natural spring and mineral waters, are classified in this industry, but establishments primarily engaged in bottling soft drinks are classified in Manufacturing, Major Group 20. This industry does not include establishments primarily engaged in the wholesale distribution of farm-product raw materials classified in Industry Group 515, nor those distributing beer, wine, and distilled alcoholic beverages of Industry Group 518.

  • Bagging of tea
  • Bakery products-wholesale
  • Beverage concentrates-wholesale
  • Bottling mineral or spring water-wholesale
  • Breakfast cereals-wholesale
  • Canned goods: fruits, vegetables, fish, seafoods, meats, and
  • Canned specialties-wholesale
  • Chocolate-wholesale
  • Cleaning of dry foods and spices-wholesale
  • Coffee: green, roasted, instant, freeze-dried, or extract-wholesale
  • Cookies-wholesale
  • Cooking oils-wholesale
  • Crackers-wholesale
  • Dairy products, dried or canned-wholesale
  • Dog and cat food-wholesale
  • Flavoring extract, except for fountain use-wholesale
  • Flour-wholesale
  • Fruit peel-wholesale
  • Fruits, dried-wholesale
  • Health foods-wholesale
  • Honey-wholesale
  • Hop extract-wholesale
  • Macaroni-wholesale
  • Malt extract-wholesale
  • Malt-wholesale
  • Margarine-wholesale
  • Milk, canned or dried-wholesale
  • Molasses, industrial-wholesale
  • Pet food-wholesale
  • Pickles, preserves, jellies, jams, and sauces-wholesale
  • Pretzels-wholesale
  • Rice, polished-wholesale
  • Salad dressing-wholesale
  • Salt, evaporated-wholesale
  • Sandwiches-wholesale
  • Sauces-wholesale
  • Sausage casings-wholesale
  • Shortening, vegetable-wholesale
  • Soft drinks-wholesale
  • Soups, except frozen-wholesale
  • Spaghetti-wholesale
  • Spices-wholesale
  • Starches-wholesale
  • Sugar, refined-wholesale
  • Syrups, except for fountain use-wholesale
  • Tea-wholesale
  • Vegetable cooking oil-wholesale
  • Wet corn milling products-wholesale
  • Yeast-wholesale

Beverage Wholesaler Distributor Insurance - The Bottom Line

Not all beverage wholesaler distributor insurance polices are created the same. If you are looking for commercial insurance, or just want to see if you have the best fit coverage, speak to an experienced agent to take a look at your situation.

In many cases they can save you premium dollars and offer you better policy options than you currently have.

Types Of Small Business Insurance - Requirements & Regulations

Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.

Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.

Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.

Small Business Information

Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.

Small Business Insurance Information

In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.

The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.

Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.

According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.

Types Of Small Business Insurance

Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:

  • What type of business am I running?
  • What are common risks associated with this industry?
  • Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
  • Does my state require me to carry this type of insurance?
  • Does my lender or do any of my investors require me to carry this type of policy?

A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:

Business Insurance Policy Type What Is Covered?
General Liability InsuranceWhat is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.
Workers Compensation InsuranceWhat is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.
Product Liability InsuranceWhat is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.
Commercial Property InsuranceWhat is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.
Business Owners Policy (BOP)What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.
Commercial Auto InsuranceWhat is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.
Commercial Umbrella PoliciesWhat is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.
Liquor Liability InsuranceWhat is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.
Professional Liability (Errors & Omissions)What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.
Surety BondWhat is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).


Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.

Business Insurance Required by Law
Small Business Commercial Insurance

If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.

Your insurance agent can help you check applicable state laws so you can bring your business into compliance.

Other Types Of Small Business Insurance

There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:

  • Business Interruption Insurance
  • Commercial Flood Insurance
  • Contractor's Insurance
  • Cyber Liability
  • Data Breach
  • Directors and Officers
  • Employment Practices Liability
  • Environmental or Pollution Liability
  • Management Liability
  • Sexual Misconduct Liability

Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.

Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.

Additional Resources For Wholesale And Distribution Insurance

Read informative articles on wholesale distribution insurance. Distributors and wholesalers face specific risks including fire, flood and weather damage that can destroy products in the distribution center - and every part of the supply chain including late supplier shipments to unpaid invoices - can effect the entire operation.


Distribution Wholesaler Insurance

Wholesale and distribution operations have many of the same physical damage and property coverage concerns as warehouse operations. In both, the value of both real property and stocks of merchandise is very high. Loss control and other techniques appropriate to the types of merchandise involved are needed. For these reasons, adequate and appropriate property insurance coverages are important.

Managing inventories, equipment and facilities can expose your wholesale distribution operations to some specific and unique risks.

The commercial auto exposure can also be significant, based on the extent of merchandise delivery. In addition, transportation or motor truck cargo insurance on the merchandise must also be arranged.

Employee theft is always an issue and can be a significant exposure, depending on the type of property involved. Finally, the types of merchandise and material handled makes workers compensation insurance another very important coverage.

Minimum recommended small business insurance coverage: Business Personal Property, Business Income and Extra Expense, Accounts Receivable, Computers, Contractors' Equipment, Goods in Transit, Valuable Papers and Records, Employee Dishonesty, General Liability, Employee Benefits, Umbrella, Business Automobile Liability and Physical Damage, Hired and Non-owned Auto & Workers Compensation

Other commercial insurance policies to consider: Building, Earthquake, Equipment Breakdown, Flood, Leasehold Interest, Real Property Legal Liability, Signs, Computer Fraud, Forgery, Money and Securities, Cyberliability, Employment-Related Practices and Stop Gap Liability.


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