Motion Picture Wholesaler Distributor Insurance Policy Information
Motion Picture Wholesaler Distributor Insurance. Ever since motion pictures were created more than a century ago, they have been a primary source of entertainment around the globe. Today, of course, viewing movies is easier than it was 100 years ago.
Thanks to the advent of new technologies - DVD, Blu-Ray, and more - coupled with motion picture distributors and wholesalers, the general public can access all types of films from the comfort of their own homes - or virtually anywhere else they want to kick back, relax, and take in the latest Blockbuster hit, Indy film, and the multitude of genres.
Motion picture distributors receive completed films from foreign or domestic filmmakers, usually by truck, for distribution to movie theaters. They may also distribute completed films that have been converted to DVDs, VHS, or other format to rental outlets or retail stores.
The distribution center may be open 24 hours a day. Generally, the products are delivered to the customer on the distributor's vehicles.
As a motion picture distributor, business owners and the general public alike rely on the services you provide. While there's no doubt that your industry is beneficial and valued, like any business owner, operating your company exposes you to a lot of risks.
Property damage, physical injuries, equipment malfunctions, lawsuits; these are just some examples of the risks that you face as the owner and operator of a motion picture distributor or wholesaler.
While you hope that you never hit a bump in the road, it's always a wise idea to have a plan in case you do; making sure that you have the right motion picture wholesaler distributor insurance is the best way to protect yourself from any bumps - or potholes you may experience.
Motion picture 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 motion picture wholesaler & distributor insurance questions:
- What Is Motion Picture Wholesaler Distributor Insurance?
- How Much Does Motion Picture Wholesaler Distributor Insurance Cost?
- Why Do Motion Picture Wholesalers And Distributors Need Insurance?
- What Type Of Insurance Do Motion Picture Wholesalers And Distributors Need?
- What Does Motion Picture Wholesaler Distributor Insurance Cover & Pay For?
What Is Motion Picture Wholesaler Distributor Insurance?
Motion Picture Wholesaler Distributor Insurance is a type of insurance policy designed specifically for businesses that wholesale and distribute motion picture products, such as films, videos, and DVDs. This insurance coverage provides protection against financial losses and legal liabilities that may arise from the sale, distribution, and promotion of these products.
It covers risks such as product defects, copyright infringement, and lawsuits from customers or third-party distributors. This insurance is crucial for companies in the motion picture industry as it helps to protect their investments and operations from unexpected losses and legal challenges.
How Much Does Motion Picture Wholesaler Distributor Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small motion picture wholesaler distributor businesses ranges from $47 to $79 per month based on location, size, revenue, claims history and more.
Why Do Motion Picture Wholesalers And Distributors Need Insurance?
Insurance serves as a form of financial protection against any problems that may arise. Given the fact that you are exposed to a great many risks as a motion picture distributor and wholesaler, you could experience a great many problems; and those problems could potentially have very large price tags.
As the owner and operator of your company, you are financially responsible for any issues that may occur. If a vendor slips and falls while making a delivery to your warehouse and suffers an injury, you'd be responsible for any necessary medical care.
If your commercial space is damaged in a fire, vandalized, or a tree topples down on top of it, you'll have to pay for any necessary repairs. If someone ever files a lawsuit, you'll need to cover the cost of legal fees, as well as any damages that you are deemed liable for.
The cost of any problems that might arise can be astronomical. Will you be able to afford them without suffering? If not, then you need to have the right type of motion picture wholesaler and distributor insurance protection in place.
With insurance, if any issues do occur, instead of covering the expenses yourself, your carrier would cover them for you, potentially saving you from serious financial harm.
What Type Of Insurance Do Motion Picture Wholesalers And Distributors Need?
There are several forms of motion picture wholesaler and distributor insurance coverage business owners in this industry should carry. While the specific type of coverage depends on the specific needs of your business, here's a look at some key policies that every motion picture distributor should have:
- Business interruption
- Commercial auto
- Commercial general liability
- Commercial property
- Product liability
- Workers' compensation
These are just some of the types of motion picture 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.
Motion Picture 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 exposure is extremely limited.
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. Forklift operators must be properly trained. 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 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 exposures are high due to multiple ignition sources, open construction, and the combustibility and extreme damageability of films, film reels, videotapes, and their packaging materials. Ignition sources include electrical wiring, heating, and air conditioning systems, and equipment. All wiring must be well maintained and up to code for the occupancy.
It doesn't take a lot of heat to melt film. Fire, water, heat, and smoke all can render the stock totally worthless. 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.
Theft is a major concern as films will have a high street value. Alarms, guards, fencing and other security 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' 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 loss from collision, overturn, or 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. Films, film reels, and videotapes are attractive to thieves because of their high street value. 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 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 central locations.
What Does Motion Picture Wholesaler Distributor Insurance Cover & Pay For?
Motion picture wholesalers and distributors can be sued for various reasons. Here are five common reasons and how insurance can help protect them:
Copyright infringement: Distributors can be sued if they distribute a film that infringes on someone else's copyrighted material. Insurance, specifically Media Liability Insurance, can help cover the legal costs associated with defending against such claims and pay for any settlements or judgments that may be awarded to the plaintiff.
Breach of contract: Distributors may be sued if they fail to fulfill their contractual obligations, such as failing to pay royalties or not properly promoting a film. Errors and Omissions (E&O) insurance can protect distributors by covering legal expenses and any damages awarded as a result of a breach of contract claim.
Defamation: If a film distributed by a wholesaler or distributor contains defamatory statements that harm someone's reputation, the distributor could be held liable. Media Liability Insurance can help cover the costs of defending against defamation claims and pay for any settlements or judgments that may be awarded to the plaintiff.
Invasion of privacy: Distributors can be sued if a film they distribute invades someone's privacy, for example, by using their image or personal information without consent. Media Liability Insurance can help cover the legal costs associated with defending against invasion of privacy claims and pay for any settlements or judgments that may be awarded to the plaintiff.
Negligence: If a distributor's negligence causes physical harm or property damage, they can be sued. General Liability Insurance can protect distributors by covering the costs of defending against negligence claims and paying for any damages awarded as a result of the lawsuit.
In all of these examples, having the appropriate insurance coverage can help motion picture wholesalers and distributors protect their businesses from financial loss resulting from lawsuits. It's essential for them to work closely with an insurance agent to ensure they have the right coverage for their specific needs.
Commercial Insurance And Business Industry Classification
- SIC CODE: 7822 Motion Picture And Video Tape Distribution
- NAICS CODE: 423990 Other Miscellaneous Durable Goods Merchant Wholesalers, 512120 Motion Picture and Video Distribution
- Suggested Workers Compensation Code(s): 4360 Motion Picture - Development of Negatives, Printing, and All Subsequent Operations
Description for 7822: Motion Picture And Video Tape Distribution
Division I: Services | Major Group 78: Motion Pictures | Industry Group 782: Motion Picture Distribution And Allied Services
7822 Motion Picture And Video Tape Distribution: Establishments primarily engaged in the distribution (rental or sale) of theatrical and nontheatrical motion picture films or in the distribution of video tapes and disks, except to the general public. Establishments engaged in both distribution and production are classified in Industry 7812. Establishments primarily engaged in renting video tapes and disks to the general public are classified in Industry 7841, and those engaged in the sale of video tapes and disks to individuals for personal or household use are classified in Retail Trade, Industry 5735.
- Film exchanges, motion picture
- Motion picture distribution, exclusive of production
- Rental of motion picture film
- Tape distribution for television
- Tapes, video, recorded-wholesale
- Video tapes, recorded-wholesale
Motion Picture Wholesaler Distributor Insurance - The Bottom Line
Not all motion picture wholesaler distributor insurance polices are created equal. If you are looking for business insurance, or want to see if your current policy protects 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.
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
- Specialty Dealers And Distributors
The wholesale distribution industry plays a crucial role in the supply chain process, connecting manufacturers and retailers to customers. It involves the storage, transportation, and distribution of a wide range of products, including raw materials, finished goods, and equipment.
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.
As with any business, the wholesale distribution industry is exposed to a variety of risks that can impact its operations and profitability. These risks can range from property damage and theft to liability claims and employee injuries.
Business insurance helps to protect a wholesale distribution company from these potential losses by providing financial protection in the event of unexpected events. It helps to cover the costs of repairs, replacements, and legal fees, as well as lost income and wages.
For example, if a warehouse fire destroys a large portion of a wholesale distributor's inventory, business insurance can help to cover the cost of replacing the lost goods and repairing the damaged property. Similarly, if a customer is injured on the company's premises, liability insurance can help to cover the cost of legal fees and settlement payments.
In addition to protecting the company's assets and financial stability, commercial insurance also helps to protect the company's reputation. If a company is sued or faces a major loss, it can damage its reputation and credibility in the industry. Business insurance helps to mitigate these risks and maintain a positive reputation.
Overall, the wholesale distribution industry needs business commercial insurance to protect against unexpected risks and losses, maintain financial stability, and protect the company's reputation. Without it, a company may face significant financial losses and potential legal liabilities that could impact its operations and profitability.
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.