Seed Merchants Wholesaler Distributor Insurance Policy Information
Seed Merchants Wholesaler Distributor Insurance. Seed merchants sell seeds in bulk to farmers and plant nurseries. The seeds may include beans, corn, wheat or other field crops. The merchant may do plant breeding, seed production, inspection, sampling, testing, selection, mixing, and packaging.
Mixing may include blending a selected variety of seeds with disease-prevention agents, fertilizers, herbicides, insecticides and/or rodenticides. Some blending may be considered genetically modified organisms (GMO).
Farmers depend on statements and warranties made by seed merchants regarding the suitability of the selected seeds or seed mixtures for local soil conditions, germination rates, crop yields, and resistance to disease.
Should the wrong seeds be provided to the farmer and those seeds fail to germinate, or the seeds fail to resist disease, the farmer can suffer severe financial loss. The distribution center may be open 24 hours a day.
Are you thinking about staring up a seed merchant distribution center or wholesale supply store?
If so, then you're definitely going to want to make sure you address all necessary concerns to ensure your success. High on your list of things that you need to tend to should be seed merchants wholesaler distributor insurance.
Seed merchants 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 seed merchants wholesaler & distributor insurance questions:
- How Much Does Seed Merchants Wholesaler Distributor Insurance Cost?
- Why Do Seed Merchants Wholesalers And Distributors Need Insurance?
- What Type Of Insurance Do Seed Merchants Wholesalers And Distributors Need?
How Much Does Seed Merchants Wholesaler Distributor Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small seed merchants wholesaler distributor businesses ranges from $47 to $79 per month based on location, size, revenue, claims history and more.
Why Do Seed Merchants Wholesalers And Distributors Need Insurance?
As a seed merchant distributor or wholesaler, you face a variety of risks. Property damage, collisions involving commercial vehicles, employee injuries and illnesses, product liability, legal disputes; these are just some of the risks that you'll be exposed to in your industry.
If anything goes wrong, you are liable for costs that are associated with things like repairs, medical care, and legal fees. The costs of these expenses can be prohibitive. If you had to pay for them out of your own pocket, it's likely that you would suffer a serious financial loss and could even end up going bankrupt.
To avoid the damage that these costs could do to your business, you need to carry the right type of seed merchants wholesaler and distributor insurance. If you're properly insured, should anything go wrong, you wouldn't have to shell out big bucks yourself; instead, your insurance provider would cover the costs for you.
To put it plainly, insurance can save you a tremendous amount of money and potentially prevent you from losing your business.
What Type Of Insurance Do Seed Merchants Wholesalers And Distributors Need?
The specific type of coverage your seed merchant wholesale business needs depends on a variety of factors that are particular to your business; however, there are certain seed merchants wholesaler and distributor insurance policies that everyone in this industry will need, regardless of the specifics of their business.
- General Liability: Seed merchant distributors and wholesalers can rely on general liability insurance to handle any claims that are associated with third-party bodily injury and property damage claims.
- Product Liability: If any of the products you distribute or sell physically harm a consumer, anyone who is involved in the supply chain can end up being sued, including you. Product liability insurance will handle any legal expenses that are associated with product liability claims, as well as any damages that you may be required to pay.
- Commercial Auto: If you may deliveries or use vehicles for business-related purposes in any way, commercial auto insurance is a must. If you or any of your employees are involved in an accident in a business vehicle, this coverage will help to pay for any repairs, medical bills, and even legal fees if you're sued.
- Commercial Property: When a fire, vandalism, theft, or any other covered peril affects your commercial property, this type of insurance policy will help to pay for any necessary repairs or replacements.
- Business Interruption: If you're ever forced to close down shop - while you're rebuilding after a fire, for example - business interruption coverage will replace any income you may lose while you're unable to operate.
These are just some of the types of seed merchants 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.
Seed Merchants Wholesale Distributor's Risks & Exposures
Premises liability exposure is limited due to the lack of public access to the premises. 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. Stock stored outdoors may present an attractive nuisance hazard. There should be adequate fencing and other security to prevent vandals from entering the premises.
Contracts with transportation and storage providers may expose the seed merchant to additional liability. 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 very high due to the potential for erroneous delivery or misdelivery, error in mixing, and germination failure. All are serious situations that can cause a farmer to lose an entire crop year. Quality control records must be maintained for all operations from initial plant breeding to mixing for customers.
Contracts must include all specifications for items purchased and be signed by the customer. Seeds must be clearly identified as non-GMO or GMO. All GMO seeds must be kept separate to prevent any cross-pollination or mistake in the seed mixture.
Workers compensation exposures are very high. Back injuries, hernias, sprains, and strains can result from the lifting of bags of seeds. Workers should be trained in proper lifting techniques and have conveyances available. 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. Housekeeping is critical.
Spills should be cleaned up promptly to prevent slips and falls. Employees should be provided with safety equipment. Seeds kept in silos increase the risk as an employee who falls into the silo may suffocate. When work is done on computers, employees are exposed to eyestrain, neck strain, and repetitive motion injuries including carpal tunnel syndrome.
Exposure to chemicals and fertilizers can result in irritants to the eyes, skin, and lungs. Employees making deliveries 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 exposures are high due to multiple ignition sources, open construction, and the possibility of spontaneous combustion from dust. Ignition sources include electrical wiring and equipment, heating and air conditioning systems. All electrical wiring must be well maintained and up to code.
If there is testing on premises, there may be high-valued equipment and chemicals, which may be flammable. These must be well controlled, labeled, and separated, with proper storage in appropriate containers and storage facilities. Storage areas must be well ventilated to prevent spontaneous combustion. Smoking should be prohibited. A small fire or power outage can result in seed stock being condemned as unfit for planting due to contamination.
Power outages of ventilating systems or refrigeration equipment can result in high spoilage losses, loss of business income, and extra expense incurred to maintain operation. Equipment should be maintained on a regular basis, with backup generators available.
Property stored in the open may be a target for vandalism. 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 due to the seasonality of seed sales.
Inland marine exposures include accounts receivable because many seed merchants offer credit to be repaid following harvest. Computers are used to monitor inventory, to test, and to assist in mixing and blending of seeds. While seeds may come to the warehouse via contract or common carriers or trains, there will be goods in transit from the distributor delivering stock to farmers.
Valuable papers and records exposure is from customers' and vendors' information and documentation of blending and testing. Backup copies of all records, including computer records, should be made and stored off premises. These records may become more important as GMO labeling expands. 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.
Commercial auto exposure may be limited to hired or non-owned liability exposures from employees using their vehicles to run errands. If pickup or delivery services are provided, MVRs and driving records should be obtained for any driving employee. 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. Vehicles should be properly maintained, and records retained. Vehicles may be operated in rural areas without paved roads. Bulk seed can be difficult to transport due to its potential for shifting.
Commercial Insurance And Business Industry Classification
- SIC CODE: 5191 Farm Supplies
- NAICS CODE: 424910 Farm Supplies Merchant Wholesalers
- Suggested ISO General Liability Code(s): 16890, 16891, 16892
- Suggested Workers Compensation Code(s): 8102
Description for 5191: Farm Supplies
Division F: Wholesale Trade | Major Group 51: Wholesale Trade-non-durable Goods | Industry Group 519: Miscellaneous Non-durable Goods
5191 Farm Supplies: Establishments primarily engaged in the wholesale distribution of animal feeds, fertilizers, agricultural chemicals, pesticides, seeds, and other farm supplies, except grains.
- Agricultural chemicals-wholesale
- Agricultural limestone-wholesale
- Animal feeds, except pet-wholesale
- Beekeeping supplies-wholesale
- Farm supplies-wholesale
- Feed additives, animal-wholesale
- Feed, except unmixed grain-wholesale
- Fertilizer and fertilizer materials-wholesale
- Flower and field bulbs-wholesale
- Harness equipment-wholesale
- Harness made to individual order-wholesale
- Lime, agricultural-wholesale
- Mineral supplements, animal-wholesale
- Phosphate rock, ground-wholesale
- Seeds: field, garden, and flower-wholesale
Seed Merchants Wholesaler Distributor Insurance - The Bottom Line
All seed merchants wholesaler distributor insurance polices do not have the same cost and coverage. If you are shopping for business insurance, or want to see if your coverage is adequate, speak to a broker 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.