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Wholesaler Distributor Insurance

Restaurant Equipment Wholesaler Distributor Insurance Policy Information

Restaurant Equipment Wholesaler Distributor Insurance. Refrigeration units, shelving, ranges, dishwashers, ice machines, prep tables; as a restaurant equipment distributor or wholesaler, you deal with a large variety of costly merchandise.

You also work with various food-service based industries, from mom-and-pop diners to large chain restaurants.

Restaurant equipment wholesalers receive electrical or electronic appliances, equipment, and supplies for commercial eating establishments from foreign or domestic manufacturers, usually by truck, for distribution to restaurants, commercial builders, and other business establishments.

Stock includes dishwashers, grills, ovens, refrigeration systems, stoves, and warmers. The wholesaler does not modify the cabinets in any way or do the installation. The distribution center may be open 24 hours a day. Generally, the products are delivered to the customer on the distributor's vehicles.

Business owners and organizations rely on you to deliver the products that they need. Your employees also rely on you to ensure the environment they work in is safe. But what if something happens; what if there's an error with a shipment, your inventory is damaged, an employee suffers a work-related injury?

As the owner and operator of your business, you would be responsible for paying any expenses that are related to the things you are liable for; repairs, medical bills, the replacement of lost inventory, etc.

If you're ever confronted with legal trouble, you'll also have to cover those expenses. Would you be able to handle these costs on your own?

More than likely, your answer is 'no'; and even if you could cover these expenses, there's no doubt that they would negatively affect you.

How can you avoid the losses that you could suffer if a problem arises? By investing in the right type of restaurant equipment wholesaler distributor insurance coverage.

Restaurant 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 restaurant equipment wholesaler & distributor insurance questions:

• What Is Restaurant Equipment Wholesaler Distributor Insurance?
• How Much Does Restaurant Equipment Wholesaler Distributor Insurance Cost?
• Why Do Restaurant Equipment Wholesalers And Distributors Need Insurance?
• What Type Of Insurance Do Restaurant Equipment Wholesalers And Distributors Need?
• What Does Restaurant Equipment Wholesaler Distributor Insurance Cover & Pay For?

Why Do Restaurant Equipment Wholesalers And Distributors Need Insurance?

Insurance gives you access to the financial resources you need for your liabilities; the things that you are financially responsible for. If your commercial property is damaged, including the structure of the building and any of the supplies, equipment or inventory within it, instead of having to pay the repair or replacement fees yourself, your insurance carrier would assist with the costs.

Or, if a third-party, such as a vendor or a client, files a lawsuit against you after suffering an injury on your property, the company that issues your insurance would pay for any related expenses.

In other words, restaurant equipment wholesaler and distributor insurance is the best way to ensure you are protected against serious financial losses. It assures that you have the funding available to recover from any problems that may arise quickly, and prevents you from potentially losing your business.

These are just some of the types of restaurant 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.

Restaurant Equipment Wholesale Distributor's Risks & Exposures

Premises liability exposure is limited due to 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. Products should be marked for easy access in case of recall.

Workers compensation exposure is very high. Lifting injuries such as back pain, hernias, sprains and strains are common. Workers should be trained in proper lifting techniques and to use conveyances. Forklift operators must be properly trained. Shelving must be stable to prevent stored goods from falling onto workers..

Continual standing can result in musculoskeletal disorders of the back, legs, or feet. Floor coverings or coatings in the warehouse may 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. Salespersons and delivery drivers 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 moderate due to multiple ignition sources, open construction, and the damageability of electrical appliances and combustibility of 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..

Good housekeeping and fire controls are critical. All stock should be racked and stored with adequate aisle space and limited stockpiling to prevent a fire from spreading. 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..

Restaurant equipment can be target items for thieves. 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 items. While goods may come to the warehouse via contract or common carriers or trains, items are generally delivered to customers on trucks owned by the distributor..

Goods in transit are subject to loss from collision or overturn. Due to the potential for theft, vehicles should be unmarked, have alarms, and be attended at all times.

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. 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. Cargo must be secured to prevent shifting of the load during transport. Vehicles must be well maintained with records kept in a central location.

What Does Restaurant Equipment Wholesaler Distributor Insurance Cover & Pay For?

Restaurant equipment wholesalers and distributors can face various legal challenges, and having the right insurance coverage can help protect them financially. Here are some common reasons they may be sued and how insurance can help:

Product liability: If a product they sell is defective, causing injury or property damage, they may be held liable. Product liability insurance can help cover the legal costs, damages, and settlement fees associated with such lawsuits.

Breach of contract: If a wholesaler or distributor fails to deliver products on time or doesn't fulfill other contractual obligations, they may be sued for breach of contract. Commercial general liability insurance can help cover the legal costs and any damages awarded to the plaintiff.

Property damage: If a distributor's equipment or vehicle causes damage to a customer's property, they can be held responsible. Commercial auto insurance or property insurance can help cover the costs of repairing or replacing the damaged property, as well as legal expenses.

Employee injuries: If an employee gets injured while working for the wholesaler or distributor, they may sue the company for workers' compensation. Workers' compensation insurance can help cover medical expenses, lost wages, and potential legal fees associated with the claim.

Intellectual property infringement: If a wholesaler or distributor is accused of infringing on a patent, trademark, or copyright, they may face a lawsuit. Intellectual property insurance can help cover legal defense costs and any damages awarded to the plaintiff.

Employment practices liability: If a wholesaler or distributor faces a lawsuit for issues such as discrimination, harassment, or wrongful termination, employment practices liability insurance can help cover legal defense costs and any damages awarded to the plaintiff.

In summary, various insurance policies can help restaurant equipment wholesalers and distributors protect themselves from potential lawsuits. By tailoring their coverage to the specific risks they face, these businesses can minimize their financial exposure in case of legal challenges.

Commercial Insurance And Business Industry Classification

• SIC CODE: 5046 Commercial Equipment, Not Elsewhere Classified
• NAICS CODE: 423440 Other Commercial Equipment Merchant Wholesalers, 423210 Furniture Merchant Wholesalers
• Suggested Workers Compensation Code(s): 8111 Plumbers' Supplies Dealer & Drivers

Description for 5046: Commercial Equipment, Not Elsewhere Classified

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

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

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

Restaurant Equipment Wholesaler Distributor Insurance - The Bottom Line

Not all restaurant equipment wholesaler distributor insurance polices are equal. If you are shopping for commercial insurance, or want to see if your current policy is adequate, 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
• Beverage
• Cabinets
• Cameras & Musical Instruments
• Candy
• CDs, DVDs And Videos
• Clothing
• Coffee
• Confectioners
• Dairy Products
• Drugs
• Dry Goods
• Electrical Appliances
• Electrical Equipment
• Electrical Supplies
• Electronic Equipment
• Envelopes
• Extracts
• Food
• Fruit
• Fur
• Furniture
• Gifts
• Glassware
• Greeting Cards
• Grocers
• Hardware
• Importer & Exporter
• Jewelry
• Lamps
• Liquor Wholesaler
• Lumber
• Manufacturers Representative
• Meat
• Motion Picture
• Novelties
• Paint
• Petroleum
• Plate Glass
• Plumbing Supplies
• Restaurant Equipment
• Roofing Materials
• Rugs
• Seed Merchants
• Shoes
• Stationers
• Theatrical Supplies
• Tires
• Tools
• Toys
• Wallpaper
• 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.