Cabinets
Wholesaler Distributor Insurance

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Cabinets Wholesaler Distributor Insurance Policy Information

Cabinets Wholesaler Distributor Insurance

Cabinets Wholesaler Distributor Insurance. Just like any business, cabinet distributors and wholesalers face a number of risks. Clients can sue you for property damage or personal injuries. Workers can sustain injuries while they're on-the-job. Your warehouse could be damaged in a major storm.

An accident in one of your delivery trucks could occur. These are just some of the incidents that could arise. As the proprietor of your business, you are responsible for covering the cost of any damages that may occur should an unforeseen event arise.

Cabinet wholesalers receive items such as kitchen or bathroom cabinets, shelves, and counters as well as adhesives, nails, and sealants from foreign or domestic manufacturers, usually by truck, for distribution to retailers, commercial builders, and other commercial establishments.

The wholesaler does not modify the cabinets in any way or do the installation. The distribution center may be open 24 hours a day. Generally, the products are delivered to the customer on the distributor’s vehicles.

The cost of damages - as well as any legal fees - can be astronomical. If you had to pay these expenses out of your own pocket, you could end up facing serious financial hardship. That's why you need to invest in cabinets wholesalers & distributors insurance. Should an incident occur that you are liable for, your insurance carrier will cover the cost of the expenses.

Commercial insurance, in essence, prevents you from financial devastation. Additionally, certainly types of cabinets wholesaler distributor insurance coverage are legally required; if you don't have mandated coverage, you could face stiff penalties and fines; you could even lose your business.

Cabinets 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 cabinets wholesaler & distributor insurance questions:


How Much Does Cabinets Wholesaler Distributor Insurance Cost?

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


Why Do Cabinets Wholesalers And Distributors Need Insurance?

Wholesaler Distributor Insurance

Like any business in any industry, there are several risks associated with owning and operating an cabinets 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 cabinets 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 Cabinets Wholesalers And Distributors Need?

The specific forms of cabinets wholesaler distributor insurance coverage you'll need to invest in depend on a variety of factors, including the location of your business and the size of your operation; however, in general, most cabinet wholesalers should have the following coverage:

  • Commercial General Liability - If a vendor, client, or any other third-part sustains an injury on your property or claims you or an employee caused property damage, this type of coverage will assist with any damages that you may be required to pay, as well as any related legal expenses if the party files a lawsuit against you.
  • Product Liability - If any of the products you sell are defective and cause damages or injuries, product liability insurance will help to cover the cost.
  • Commercial Property - This type of insurance protects the physical structure of your warehouse, as well as the contents that it contains, from acts of nature, vandalism, and theft. If a fire occurs, for example, your insurance carrier will help to cover the cost of the repairs and any damaged inventory.


These are just some of the types of cabinets 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.

Cabinets Wholesale Distributor's Risks & Exposures

Wholesale Distribution Insurance

Premises liability exposure is 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 exposures are low if products are all from domestic manufacturers. For products received from foreign manufacturers, the exposure will be that of a manufacturer. Products should be marked for easy access in case of recall.

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. Floor coverings or coatings in the warehouse can pose slip and fall hazards. Housekeeping is critical. Salespersons and delivery drivers may be subject to holdup. Training must be provided to deal with such situations.

Property exposures are high due to multiple ignition sources, open construction, and the combustibility and damageability of wooden cabinetry, adhesives, sealants and their packaging materials. Ignition sources include electrical wiring and equipment. All wiring must be well maintained and up to code for the occupancy.

Containers of adhesives and flammables should be stored away from combustibles. Good housekeeping and fire controls are critical. All stock should be racked and stored with adequate aisle space and limited stockpiling to prevent the spread of fire. Smoking should be prohibited.

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. Theft can be a concern. Alarms, guards, fencing and other security precautions must be in place as appropriate to the location.

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. Good security systems should be in place to discourage employee theft. 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 contract or common carriers or trains, items are generally delivered to customers on trucks owned by the distributor. Goods in transit are subject to loss by 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 a written policy 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 with records kept in a central location.

Commercial Insurance And Business Industry Classification

  • SIC CODE: 5021 Furniture, 5046 Commercial Equipment Not Elsewhere Classified, 5099 Durable Goods, Not Elsewhere Classified
  • NAICS CODE: 423210 Furniture Merchant Wholesalers, 423440 Other Commercial Equipment Merchant Wholesalers, 423310 Lumber, Plywood, Millwork and Wood Panel Merchant Wholesalers
  • Suggested ISO General Liability Code(s): 12467, 13351
  • Suggested Workers Compensation Code(s): 8044, 8235

Description for 5021: Furniture

Division F: Wholesale Trade | Major Group 50: Wholesale Trade-durable Goods | Industry Group 502: Furniture And Home Furnishings

5021 Furniture: Establishments primarily engaged in the wholesale distribution of furniture, including bedsprings, mattresses, and other household furniture; office furniture; and furniture for public parks and buildings. Establishments primarily engaged in the wholesale distribution of partitions, shelving, lockers, and store fixtures are classified in Industry 5046.

  • Bar furniture-wholesale
  • Bedsprings-wholesale
  • Cafeteria furniture-wholesale
  • Chairs household, office, and public building-wholesale
  • Church pews-wholesale
  • Desks, including school-wholesale
  • Furniture, juvenile-wholesale
  • Furniture, unfinished-wholesale
  • Furniture household, office, restaurant, and public building-wholesale
  • Lawn furniture-wholesale
  • Mattresses-wholesale
  • School desks-wholesale
  • Theater seats-wholesale
  • Waterbeds-wholesale

Description for 5046: Commercial Equipment Not Elsewhere Classified

Division F: Wholesale Trade | Major Group 50: Wholesale Trade-durable Goods | Industry Group 504: Professional And Commercial Equipment And Supplies

5046 Commercial Equipment Not Elsewhere Classified: Establishments primarily engaged in the wholesale distribution of commercial and related machines and equipment, not elsewhere classified, such as commercial cooking and food service equipment; partitions, shelving, lockers, and store fixtures; electrical signs; and balances and scales, except laboratory.

  • Balances, except laboratory-wholesale
  • Coffee urns, commercial-wholesale
  • Cooking equipment, commercial-wholesale
  • Fixtures, store, not refrigerated-wholesale
  • Food warming equipment, commercial-wholesale
  • Lockers, not refrigerated-wholesale
  • Mannequins-wholesale
  • Merchandising machines, automatic-wholesale
  • Neon signs-wholesale
  • Ovens, microwave: commercial-wholesale
  • Partitions-wholesale
  • Phonographs, coin-operated-wholesale
  • Scales, except laboratory-wholesale
  • Shelving-wholesale
  • Signs, electrical-wholesale
  • Soda fountain fixtures, except refrigerated-wholesale
  • Vending machines-wholesale

Description for 5099: Durable Goods, Not Elsewhere Classified

Division F: Wholesale Trade | Major Group 50: Wholesale Trade-durable Goods | Industry Group 509: Miscellaneous Durable Goods

5099 Durable Goods, Not Elsewhere Classified: Establishments primarily engaged in the wholesale distribution of durable goods, not elsewhere classified, such as musical instruments and forest products, except lumber.

  • Ammunition, except sporting-wholesale
  • Cassettes, prerecorded: audio-wholesale
  • Cordwood-wholesale
  • Fire extinguishers-wholesale
  • Firearms, except sporting-wholesale
  • Firewood-wholesale
  • Game machines, coin-operated-wholesale
  • Gas lighting fixtures-wholesale
  • Logs, hewn ties, posts, and poles-wholesale
  • Luggage-wholesale
  • Machine guns-wholesale
  • Monuments and grave markers-wholesale
  • Musical instruments-wholesale
  • Phonograph records-wholesale
  • Portraits-wholesale
  • Pulpwood-wholesale
  • Roundwood-wholesale
  • Signs, except electric-wholesale
  • Tapes, audio prerecorded-wholesale
  • Timber products, rough-wholesale
  • Wood chips-wholesale

Cabinets Wholesaler Distributor Insurance - The Bottom Line

Not all cabinets 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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