Electronic Equipment Wholesaler Distributor Insurance Policy Information
Electronic Equipment Wholesaler Distributor Insurance. As an electronic equipment and instruments distributor or wholesaler, you've got a lot on your plate. You are tasked with the job of making sure your business runs as smoothly and safely as possible.
Ordering and storing inventory, fulfilling and shipping out orders, managing invoices, making sure your workplace is safe; these are just some of the things that you need to attend to. These are also things that can expose you to risks; risks that can have costly price tags.
Electronic equipment and supplies wholesalers receive either household or commercial items from foreign or domestic manufacturers, usually by truck, for distribution to electronic appliance stores, discount houses, and other retail establishments.
Items include audio or visual systems, commercial or residential appliances, light fixtures, security systems, and wiring. The distribution center may be open 24 hours a day. Generally, the products are delivered to the customer on the distributor's vehicles.
Have you ever thought about what you would do if something went wrong? Would you be able to afford the cost of medical bills, repairs, replacements, and potential legal fees? What if your business operations were disrupted for any length of time; would you be able to recoup the losses?
Like most business owners, you would probably face financial devastation. That's why it's important to carry the right type of electronic equipment wholesaler distributor insurance.
Electronic equipment 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 electronic equipment wholesaler & distributor insurance questions:
- How Much Does Electronic Equipment Wholesaler Distributor Insurance Cost?
- Why Do Electronic Equipment Wholesalers And Distributors Need Insurance?
- What Type Of Insurance Do Electronic Equipment Wholesalers And Distributors Need?
How Much Does Electronic Equipment Wholesaler Distributor Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small electronic equipment wholesaler distributor businesses ranges from $47 to $79 per month based on location, size, revenue, claims history and more.
Why Do Electronic Equipment Wholesalers And Distributors Need Insurance?
Electronic equipment wholesaler and distributor insurance acts as financial shield; should something go wrong that you are found liable for, if you're properly insured, you'll have the money to pay and continue operating.
For example, if a third-party, like a client or a vendor, slips, falls, and suffers an injury on your property, they could file a lawsuit.
Insurance serves as a form of financial protection. When peril strikes, instead of having to pay for exorbitant costs out of your own pocket, your insurance carrier would cover the expenses. Electronic equipment wholesaler and distributor insurance can help you avoid huge financial losses that could bankrupt your business.
What Type Of Insurance Do Electronic Equipment Wholesalers And Distributors Need?
The specific type of coverage your wholesale electronics operation needs depends on a variety of factors that are unique to your business; however, there are electronic equipment wholesaler and distributor insurance policies that every business in the electronics distribution industry will need, regardless of the specifics of their business.
- General Liability - This coverage protects you from any lawsuits that third-parties may file against you that allege your business was responsible for property damage or physical injuries. For example, if a customer trips over a pile of boxes while visiting your warehouse, or an employee damages a client's property while making a delivery, general liability insurance would cover legal expenses, as well as any damages that you may be responsible for.
- Commercial Property - This policy protects your warehouse or distribution center, as well as the equipment, tools, inventory, furnishings, and even other people's property that may be within it. It covers the cost of any damages that may occur as a result of acts of nature, fire, vandalism, or theft.
- Business Income - If your business operations have to be suspended for any length of time, business income insurance will cover any income you may lose. For example, if vandals caused extensive damage to your warehouse, this coverage will replace your lost income while you're rebuilding.
- Workers Compensation - When need medical care because they suffered a work-related injury or illness, workers' comp will cover the costs; it also helps to pay for any wages that employees may lose while they're recovering. It can even assist with any legal expenses you may incur if a staff member files a lawsuit for his or her injuries.
These are just some of the types of electronic equipment 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.
Electronic Equipment Wholesale Distributor's Risks & Exposures
Premises liability exposure is generally 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. 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.
If customers pick up goods, loading docks must be clearly marked and user-friendly. 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 exposures are low if products are all from domestic manufacturers. Direct importing of stock can increase the exposure to that of a manufacturer.
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.
Forklift operators must be properly trained. Continual standing can result in musculoskeletal disorders of the back. legs, or feet. Floor coverings or coatings in the warehouse can pose slip and fall hazards. Housekeeping is critical. 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 to deal with such situations.
Property exposure is moderate due to multiple ignition sources, open construction, and the extreme damageability of any electronic equipment and combustibility of packaging material. 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.
The smallest fire can cause extensive damage from heat, smoke, and water. 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 a 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. Electronic equipment can be target items for thieves.
Theft is a major concern. Alarms, guards, fencing and other securities precautions must be in place as appropriate to the location.
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 retailers on trucks owned by the distributor.
Goods in transit are subject to loss from collision or overturn. Due to the potential for theft, vehicles should be unmarked, have alarms, and be attended at all times. 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. Electronic equipment is attractive to thieves because of its high street value. Good security systems should be in place to discourage employee theft. Physical inventories should be conducted at least annually.
Commercial 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 with records kept in a central location.
Commercial Insurance And Business Industry Classification
- SIC CODE: 5065 Electronic Parts and Equipment, Not Elsewhere Classified, 5099 Durable Goods, Not Elsewhere Classified
- NAICS CODE: 423690 Other Electronic Parts and Equipment Merchant Wholesalers
- Suggested ISO General Liability Code(s): 12391 Electrical Equipment Distributors
- Suggested Workers Compensation Code(s): 8018 Store - Wholesale - NOC
Description for 5065: Electronic Parts and Equipment, Not Elsewhere Classified
Division F: Wholesale Trade | Major Group 50: Wholesale Trade-durable Goods | Industry Group 506: Electrical Goods
5065 Electronic Parts and Equipment, Not Elsewhere Classified: Establishments primarily engaged in the wholesale distribution of electronic parts and electronic communications equipment, not elsewhere classified, such as telephone and telegraphic equipment; radio and television broadcasting and communications equipment; and intercommunications equipment. Establishments primarily engaged in the wholesale distribution of radio and television receiving sets, phonographs, and other household sound or video equipment are classified in Industry 5064.
- Amateur radio communications equipment-wholesale
- Capacitors, electronic-wholesale
- Cassettes, recording-wholesale
- Cathode ray picture tubes-wholesale
- Citizens' band radios-wholesale
- Coils, electronic-wholesale
- Communications equipment, except household-wholesale
- Condensers, electronic-wholesale
- Connectors, electronic-wholesale
- Electronic parts-wholesale
- Electronic tubes: receiving, transmitting, and industrial-wholesale
- Intercommunications equipment, electronic-wholesale
- Magnetic recording tape-wholesale
- Public address equipment-wholesale
- Radio parts and accessories-wholesale
- Rectifiers, electronic-wholesale
- Resistors, electronic-wholesale
- Semiconductor devices-wholesale
- Tapes, audio and video recording-wholesale
- Telegraph equipment-wholesale
- Telephone equipment-wholesale
- Television receiving and transmitting tubes-wholesale
- Transformers, electronic-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
- Fire extinguishers-wholesale
- Firearms, except sporting-wholesale
- Game machines, coin-operated-wholesale
- Gas lighting fixtures-wholesale
- Logs, hewn ties, posts, and poles-wholesale
- Machine guns-wholesale
- Monuments and grave markers-wholesale
- Musical instruments-wholesale
- Phonograph records-wholesale
- Signs, except electric-wholesale
- Tapes, audio prerecorded-wholesale
- Timber products, rough-wholesale
- Wood chips-wholesale
Electronic Equipment Wholesaler Distributor Insurance - The Bottom Line
No every electronic equipment wholesaler distributor insurance policy has the same exclusions and coverages. If you are searching for insurance, or want to see if your coverage is enough to protect your operations, speak to a broker to take a look at your business.
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.
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 Insurance||What 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 Insurance||What 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 Insurance||What 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 Insurance||What 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 Insurance||What 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 Policies||What 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 Insurance||What 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 Bond||What 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
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.
- Air Conditioning And Heating
- Audio And Video Equipment
- Beer & Ale
- Cameras & Musical Instruments
- CDs, DVDs And Videos
- Dairy Products
- Dry Goods
- Electrical Appliances
- Electrical Equipment
- Electrical Supplies
- Electronic Equipment
- Greeting Cards
- Importer & Exporter
- Liquor Wholesaler
- Manufacturers Representative
- Motion Picture
- Plate Glass
- Plumbing Supplies
- Restaurant Equipment
- Roofing Materials
- Seed Merchants
- Theatrical Supplies
- Wholesale Florist
- Wholesaler Distributor
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.