Confectioners
Wholesaler Distributor Insurance

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Confectioners Wholesaler Distributor Insurance Policy Information

Confectioners Wholesaler Distributor Insurance

Confectioners Wholesaler Distributor Insurance. As a confectioner's distributor and wholesaler, you deal with a lot of different types of inventory and work with a wide variety of clients.

You hold various types of confection-based inventory, such as cakes, cookies, brownies, and other tasty delights, and you fill the orders for clients of all shapes and sizes; mom-and-pop diners, chain restaurants, delis, schools, hospitals, and so on.

Confectionery wholesalers receive packaged and bulk confection items from foreign or domestic suppliers, usually by truck, 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.

While you go to great lengths to ensure that the products you offer are the highest quality, you make sure that your employees are properly trained, you ensure that your work environment is safe and up-to-code, and you aim to make sure that all deliveries are filled properly and promptly, mistakes can happen.

When they do, you could be held liable for the damages. That's why it's important to make sure you are properly protected with the right type of confectioners wholesaler distributor insurance.

Confectioners 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 confectioners wholesaler & distributor insurance questions:


How Much Does Confectioners Wholesaler Distributor Insurance Cost?

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


Why Do Confectioners Wholesalers And Distributors Need Insurance?

Wholesaler Distributor Insurance

Confectionery distributors are exposed to a many types risks. Some are common risks that business owners in every other industry face, and some are unique to your specific line of work. Third-party and employee injuries, property damage, equipment breakdowns; these are just some of the things that you have to worry about.

When problems arise, as the owner and operator of your confectionery distribution center, you are financially responsible.

The costs of repairs, medical bills, legal fees, and any other expenses you might incur if a problem arises could be financially crippling. With the right type of confectioners wholesaler and distributor insurance coverage, instead of paying for these unexpected and costly expenses yourself, your insurance carrier will cover them for you.


What Type Of Insurance Do Confectioners Wholesalers And Distributors Need?

Confectionery wholesalers face multiple risks, and confectioners wholesaler and distributor insurance provides financial security against these risks.

Instead of having to pay the expense that are associated with any issues that arise, your insurance carrier will cover them for you; as such, insurance can help to protect you from serious financial upheaval that could potentially bankrupt your business.

Below, you'll find an overview of some of the most basic confectioners wholesaler and distributor insurance policies available, and the type of protection each form of coverage offers:

  • Commercial General Liability: If a third-party - a vendor or a client - files a lawsuit against you, citing personal injury, advertising injury, or property damage, commercial general liability insurance will cover the cost of any associated legal fees and damages that you are responsible for paying.
  • Commercial Property: Should your warehouse become damaged in a storm, a fire, by an act of vandalism, theft, or a leaking pipe, this type of coverage will help to pay for any necessary repairs. It will also pay for anything that was inside the property and needs to be repaired or replaced.
  • Business Interruption: If your business has to be shut down - if tree falls on your warehouse and operations need to cease during the restoration - business interruption coverage will help to replace any income you may lose.
  • Product Liability: If someone files a lawsuit against you, claiming that the confections you sold were tainted and caused food borne illness, product liability insurance would cover the legal expenses and the damages.
  • Commercial Auto: You'll also need to protect your commercial vehicles with commercial auto insurance. This coverage will pay for any damages that might occur if one of your work vehicles are involved in an accident.


These are just some of the types of confectioners 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.

Confectioners Wholesale Distributor's Risks & Exposures

Wholesale Distribution Insurance

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

Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls. There should be a disaster plan in place for unexpected emergencies. 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 moderate because food products are particularly vulnerable to contamination and spoilage. Allergic reactions may occur if products are not properly labeled or are allowed to cross contaminate. Monitoring the quality of food received, posting lists of ingredients, and maintaining proper storage temperature can reduce this exposure.

Accurate records must be kept of products and batches to monitor for recalls. There should be controls in place to prevent contamination from chemicals used inside the facility, such as insecticides and pesticides. Stock should be regularly rotated so older, but not out of date, stock is sold first, and out of date stock is removed and discarded.

Environmental impairment exposure is high due to the potential for air, land, or water pollution from the leakage of refrigerants used to keep some confections fresh and fuel tanks used to service vehicles. All tanks and pipes should be routinely tested for leakage.

Spill procedures must be in place to prevent the accidental discharge of contaminants. Record keeping is critical. Contracts should be in place to dispose of all environmentally dangerous chemicals.

Workers compensation exposure is very high. Back injuries, hernias, sprains, and strains can result from lifting. Workers should be trained in proper lifting techniques and have conveyances available. Shelving must be stable to prevent stored goods from falling onto workers. Continual standing can result in musculoskeletal disorders of the back, legs, or feet.

Leaking of refrigerants 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 an ammonia leak. Floor coverings or coatings may be slick and pose 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. Forklift operators must be properly trained.

When work is done on computers, employees are exposed to eyestrain, neck strain, and repetitive motion injuries including carpal tunnel syndrome. Cleaning workers can develop respiratory ailments or contact dermatitis from working with chemicals.

Drivers of delivery vehicles may be confronted by robbers, injured in automobile accidents, or be injured at customers' premises. Training must be provided on dealing with such situations, and any necessary security should be provided.

Property exposure is high due to multiple ignition sources, open construction, and the combustibility and damageability of the confections and packaging materials. Ignition sources include electrical wiring and equipment, heating and air conditioning systems. All wiring must be well maintained and up to code for the occupancy.

Confections are particularly vulnerable to loss by fire, smoke, and water. Even a small loss can cause all stock to be condemned by the FDA due to possible contamination. If there are coolers and refrigeration equipment, the age and condition are important to review. Maintenance should be done on a regular basis with records retained.

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.

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.

While confections are not a target for thieves, there should be appropriate security controls in place to deter vandals, 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 can be high. Recovering from a loss could require a lengthy time to rebuild the facility and purchase replacement refrigeration equipment.

Equipment breakdown exposures are high if there is refrigeration equipment as temperatures must remain constant. All equipment must be inspected and maintained on a regular basis. Back-up 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.

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 suppliers' and customers' information. Duplicates must be kept of all data to permit easy replication in the event of a loss.

Contractors' equipment includes forklifts 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 from collision or overturn. Interruption of power in refrigerated vehicles can result in spoilage. Sales representatives may carry sample stock to retailers.

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

There must be a separation of duties between persons handling deposits and disbursements and reconciling bank statements.

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.

Business auto exposure is moderate for 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: 5145 Confectionery
  • NAICS CODE: 424450 Confectionery Merchant Wholesalers
  • Suggested ISO General Liability Code(s): 12361
  • Suggested Workers Compensation Code(s): 8018

Description for 5145: Confectionery

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

5145 Confectionery: Establishments primarily engaged in the wholesale distribution of confectionery and related products, such as candy, chewing gum, fountain fruits, salted or roasted nuts, popcorn, fountain syrups, and potato, corn, and similar chips.

  • Candy-wholesale
  • Chewing gum-wholesale
  • Confectionery-wholesale
  • Corn chips-wholesale
  • Fountain fruits and syrups-wholesale
  • Nuts, salted or roasted-wholesale
  • Popcorn-wholesale
  • Potato chips-wholesale
  • Syrups, fountain-wholesale
  • Toppings, soda fountain-wholesale

Confectioners Wholesaler Distributor Insurance - The Bottom Line

Confectioners wholesaler distributor insurance polices can offer very different coverages and limits. If you are shopping for business insurance, or want to see if your have the best policy, speak to an experienced agent to take a look at your company.

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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