Fruit Wholesaler Distributor Insurance Policy Information
Fruit Wholesaler Distributor Insurance. If you're planning on opening up a fruit distribution or wholesale business, it goes without saying that you want to set yourself up for success. Part of achieving success is understanding the unique risks that are associated with your industry and protecting yourself from those risks.
Wholesalers and distributors of fruit face a number of liabilities. Injuries, property damage, lawsuits, equipment breakdowns, suspended operations; these are just some examples of the risks that business owners in this industry could be confronted with. As the proprietor of your business, you are responsible for the costs that are associated with these risks.
Fruit wholesalers receive fresh, frozen, pre-packaged and canned fruit from foreign or domestic farms or food processors, 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 hope to never experience any problems, the truth is, there's no way to predict the future. Hiccups can happen any time, and when they do, having a plan in place will help you recover as quickly as possible. Fruit wholesaler distributor insurance provides you with the financial protection you need if and when troubles arise.
Instead of paying costly expenses that are associated with damages, injuries, lawsuits, and other issues that could occur yourself, your insurance carrier would help to cover the expenses. To put it simply: protects you from serious financial losses.
Fruit 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 fruit wholesaler & distributor insurance questions:
- How Much Does Fruit Wholesaler Distributor Insurance Cost?
- Why Do Fruit Wholesalers And Distributors Need Insurance?
- What Type Of Insurance Do Fruit Wholesalers And Distributors Need?
How Much Does Fruit Wholesaler Distributor Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small fruit wholesaler distributor businesses ranges from $47 to $79 per month based on location, size, revenue, claims history and more.
Why Do Fruit Wholesalers And Distributors Need Insurance?
Fruit wholesalers are exposed to a variety of risks. Those risks vary from company to company; however, there are specific liabilities that every business owner in this industry faces.
The most common risks and the fruit wholesaler and distributor insurance policies that will protect you from them include:
- Third-party property damage and personal injuries. If a third-party, such as a customer or purveyor, files a lawsuit citing your business was responsible for physical injuries or property damages, commercial general liability insurance would help to pay for the expenses that you could incur, including legal fees and any financial damages that you are held liable for.
- Commercial property damages and losses. Should your warehouse or wholesale space become damaged in a fire, a natural disaster, or an act of vandalism, commercial property insurance would cover the cost of any necessary repairs or replacements.
- Employee injuries and illnesses. If a member of your staff suffers a work-related injury or develops a work-related illness, workers' compensation insurance would assist with the medical care the employee requires. It can also replace wages that the injured or ill employee may lose while recovering.
- Product liability. If any of the products you sell are recalled because of contamination or if you are sued for any physical injuries the fruit you distribute or sell has caused, product liability insurance will protect you from financial losses.
- Income losses. Should something happen that affects the operation of your business - damage to your building, for example - business interruption coverage would replace any income that you may lose.
There are a number of risks that you face as a fruit distributor or wholesaler, and fortunately, there are insurance policies that are designed to protect you from the losses could be associated with those risks.
What Type Of Insurance Do Fruit Wholesalers And Distributors Need?
Every distributor has unique needs, and fruit wholesalers are no different. The specific type of insurance coverage you'll require depends on your unique needs; however, there are certain policies that anyone who owns and operates a business in this industry will need.
Some of the most crucial forms of fruit wholesaler and distributor insurance coverage include:
- General Liability: If an accident involving a third-party happens, whether it results in a physical injury or property damage, general liability insurance will help to cover the expenses that you are responsible for.
- Commercial Property: Should your commercial space and any of the contents within it be damaged in a fire, a storm, vandalism, or even a tree that comes toppling down on top of it, commercial property insurance will assist with the necessary repair and replacement expenses.
- Workers Compensation: As an employer, you are responsible for covering the cost of any medical care your employees might if they suffer a work-related injury or illness. Workers' comp insurance will cover those medical cost; it also replaces any wages employees may lose while recovering.
These are just some of the types of fruit 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.
Fruit 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. 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 exposures are moderate to high as fruit products are vulnerable to contamination and spoilage. 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 and in order to track the source of any contamination. There should be controls in place to prevent contamination from chemicals used inside the facility, such as insecticides and pesticides.
The 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 can be high due to the potential for air, land, or water pollution from the leakage of ammonia and other refrigerants used to keep stock 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. Contracts should be in place to dispose of all environmentally dangerous chemicals. Record keeping is critical.
Workers compensation exposure is very high. Lifting injuries such as back pain, hernias, sprains and strains are common. Workers should be trained in proper lifting techniques and to use conveyances. 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. Floor coverings or coatings may be slick and pose slip and fall hazards. Forklift operators must be properly trained.
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. 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.
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, the combustibility of the packaging materials, and the damageability of the food products. Ignition sources include electrical wiring and equipment, refrigeration units, and heating and air conditioning systems. All wiring must be well maintained and up to code for the occupancy.
Fruit products are particularly vulnerable to damage by smoke, heat, fire or water and have very little salvage value. Even a small loss can cause all stock to be condemned by the FDA due to possible contamination. All goods should be palletized or shelved. Aisle space must be adequate for firefighting.
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. 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.
Food products 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.
Equipment breakdown exposures are high as temperatures must remain constant. All refrigeration 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 contract or common carriers or trains, goods are generally delivered to retailers on trucks owned by the distributor. Goods in transit are subject to spoilage loss from the breakdown of refrigeration equipment and damage from collision or overturn.
There will be very little salvage following any transit incident due to the possibility of contamination. Because of 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 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 a written policy addressing 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: 5142 Packaged Frozen Foods, 5145 Confectionery, 5148 Fresh Fruits And Vegetables, 5149: Groceries And Related Products, Not Elsewhere Classified
- NAICS CODE: 424420 Packaged Frozen Food Merchant Wholesalers, 424480 Fresh Fruit and Vegetable Merchant Wholesalers, 424490 Other Grocery and Related Products Merchants Wholesalers
- Suggested ISO General Liability Code(s): 13112, 13049
- Suggested Workers Compensation Code(s): 8018
Description for 5142: Packaged Frozen Foods
Division F: Wholesale Trade | Major Group 51: Wholesale Trade-non-durable Goods | Industry Group 514: Groceries And Related Products
5142 Packaged Frozen Foods: Establishments primarily engaged in the wholesale distribution of packaged quick-frozen vegetables, juices, meats, fish, poultry, pastries, and other "deep freeze" products. Establishments primarily engaged in the wholesale distribution of frozen dairy products are classified in Industry 5143, and those distributing frozen poultry, fish, and meat which are not packaged are classified in Industries 5144, 5146, and 5147, respectively.
- Bakery products, frozen-wholesale
- Bread, frozen: packaged-wholesale
- Cakes, frozen: packaged-wholesale
- Dinners, frozen-wholesale
- Fish, frozen: packaged-wholesale
- Frozen foods, packaged-wholesale
- Frozen vegetables-wholesale
- Fruit juices, frozen-wholesale
- Fruits, frozen-wholesale
- Meat pies, frozen-wholesale
- Meat, frozen: packaged-wholesale
- Pies, fruit: frozen-wholesale
- Poultry pies, frozen-wholesale
- Poultry, frozen: packaged-wholesale
- Seafoods, frozen: packaged-wholesale
- Soup, frozen-wholesale
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.
- Chewing gum-wholesale
- Corn chips-wholesale
- Fountain fruits and syrups-wholesale
- Nuts, salted or roasted-wholesale
- Potato chips-wholesale
- Syrups, fountain-wholesale
- Toppings, soda fountain-wholesale
Description for 5148: Fresh Fruits And Vegetables
Division F: Wholesale Trade | Major Group 51: Wholesale Trade-non-durable Goods | Industry Group 514: Groceries And Related Products
5148 Fresh Fruits And Vegetables: Establishments primarily engaged in the wholesale distribution of fresh fruits and vegetables.
- Banana ripening for the trade-wholesale
- Fruits fresh-wholesale
- Potatoes fresh-wholesale
- Vegetables fresh-wholesale
Description for 5149: Groceries And Related Products, Not Elsewhere Classified
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
- Cleaning of dry foods and spices-wholesale
- Coffee: green, roasted, instant, freeze-dried, or extract-wholesale
- Cooking oils-wholesale
- Dairy products, dried or canned-wholesale
- Dog and cat food-wholesale
- Flavoring extract, except for fountain use-wholesale
- Fruit peel-wholesale
- Fruits, dried-wholesale
- Health foods-wholesale
- Hop extract-wholesale
- Malt extract-wholesale
- Milk, canned or dried-wholesale
- Molasses, industrial-wholesale
- Pet food-wholesale
- Pickles, preserves, jellies, jams, and sauces-wholesale
- Rice, polished-wholesale
- Salad dressing-wholesale
- Salt, evaporated-wholesale
- Sausage casings-wholesale
- Shortening, vegetable-wholesale
- Soft drinks-wholesale
- Soups, except frozen-wholesale
- Sugar, refined-wholesale
- Syrups, except for fountain use-wholesale
- Vegetable cooking oil-wholesale
- Wet corn milling products-wholesale
Fruit Wholesaler Distributor Insurance - The Bottom Line
Fruit wholesaler distributor insurance polices can vary widely in coverage and exclusions. If you are searching for commercial insurance, or want to find out if your have the best fit policy, speak to an experienced agency to take a look at your operations.
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.