Stationers Wholesaler Distributor Insurance Policy Information
Stationer Wholesaler Distributor Insurance. Like any business owner, distributors and wholesalers face a variety of risks; however, there are additional risks that are unique to the wholesale industry that operations in this industry also face.
Stationer wholesalers receive a wide range of items, including various types and sizes of stationery, writing paper, greeting cards, writing instruments, calendars, notebooks, and organizers from foreign or domestic manufacturers for distribution to stationery shops, office supply stores, department stores, or other retailers.
The distribution center may be open 24 hours a day. Generally, the products are delivered to the customer on the distributor's vehicles.
Some of the most common risks that stationers distributors and wholesalers are exposed to include:
- Third-party claims that involve personal injuries and property damages; for example, if a client claims an employee damaged their property while making a delivery, he or she may file a lawsuit and you would need to pay for any legal fees as well as damages that a court may find you liable for.
- Employee injuries and illnesses; if a piece of equipment malfunctions and injuries an employee, for instance, you would need to pay for any related medical expenses. You would also have to cover wages that the employee would lose while recovering.
- Damages to your commercial property; if a vandal spray paints graffiti on your building and breaks outdoor signage and lights, you would need to pay for any necessary repairs.
These are just some examples of the risks that are faced. The costs that are associated with these risks can be exceptionally high. If you had to cover those expenses yourself, you could end up suffering severe financial losses.
If you are properly insured, however, the company that issues your stationers wholesaler distributor insurance policy would assist with the costs of any covered damage or loss, thereby saving you from large out-of-pocket losses.
Stationers 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 stationers wholesaler & distributor insurance questions:
- How Much Does Stationers Wholesaler Distributor Insurance Cost?
- Why Do Stationers Wholesalers And Distributors Need Insurance?
- What Type Of Insurance Do Stationers Wholesalers And Distributors Need?
How Much Does Stationers Wholesaler Distributor Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small stationers wholesaler distributor businesses ranges from $47 to $79 per month based on location, size, revenue, claims history and more.
Why Do Stationers Wholesalers And Distributors Need Insurance?
Similar to businesses in other industries, there are several risks associated with owning and operating an stationers wholesale distribution center.
Your property and the inventory within it could be damaged by a fire or a flood. A vendor could be injured while making a delivery on your property. A client could file a lawsuit against you, claiming that you sold them a defective product that damaged their property. An employee could sustain a work-related injury.
These are just some of the scenarios that could occur, and as the owner and operator of your company, you would be held liable for the damages; damages that could cost an exorbitant amount of money. If any lawsuits are filed against your company, you would also be responsible for the legal fees.
These expenses could be financially crippling and could ultimately lead to the loss of your livelihood - and even your personal property.
With the right type of stationers wholesaler and distributor insurance coverage, you would be protected from potential financial losses. Should a client file a lawsuit against you, your insurance company would help to cover the cost of legal defense fees and settlements.
If your property is damaged in a fire, your carrier would assist with the cost of repairing and replacing the damages.
What Type Of Insurance Do Stationers Wholesalers And Distributors Need?
The specific kinds of stationers wholesaler distributor insurance coverage you'll need to invest in depend on a variety of factors, including the location of your business and the size of your operation; however, in general, most stationary wholesalers should have the following coverage:
- Equipment Breakdown - If any of the equipment you rely on to operate your business bends up breaking down, this type of coverage would help to cover the cost of any repairs that might be necessary.
- General Liability - When vendors, clients, or anyone other than an employee sustains an injury on your property or claims you damaged their property, general liability insurance would help to cover the associated costs, including legal fees, medical bills, necessary repairs, and any damages a court might require you to pay.
- Workers' Compensation - With workers comp, if your employees sustain any on-the-job injuries or suffer work-related illnesses, their medical care will be covered. Additionally, this policy will replace part of the wages that an employee loses while recovering.
- Business Auto - If any of the vehicles that are used for business-related reasons are involved in an accident, commercial auto insurance would help to pay for the repairs to the vehicle and any injuries the driver or passengers may sustain.
These are just some of the types of stationers 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.
Stationers Wholesale Distributor's Risks & Exposures
Premises liability exposure is generally limited due to lack of public access to the storage facilities. If customers pick up goods, loading docks must be clearly marked and user-friendly. Customers should be confined to specific areas that are kept clean, dry and free of obstacles.
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 low if products are all from domestic manufacturers.
Workers compensation exposure is very high. Back injuries, hernias, sprains, and strains can result from lifting so 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. Floor coverings or coatings may pose slip and fall hazards. Housekeeping is critical.
Property exposure comes from multiple ignition sources, open construction, and the combustibility and damageability of stationery items. Ignition sources are from electrical wiring and equipment. All wiring must be well maintained and up to code for the occupancy.
Fire, smoke, or water damage could cause significant losses as salvage potential is limited. If there are any stocks of flammables, those should be kept well away from the paper storage, preferably in a UL approved cabinet.
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. Alarms, guards, fencing and other security precautions should be in place as appropriate to the location.
Crime exposure is from employee dishonesty. This operation involves a number of transactions and accounts that can be manipulated if duties are not separated. Background checks, including criminal history, should be performed on all employees handling money.
Regular audits, both internal and external, are important in order to prevent employee theft of accounts. Physical inventories should be conducted at least annually.
Inland marine exposures come 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, goods are generally delivered to retailers on trucks owned by the distributor. Goods in transit are subject to loss from collision or overturn, but some goods can be salvaged as they do not have a high breakage potential.
Commercial auto exposure comes from 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: 5112 Stationery and Office Supplies
- NAICS CODE: 424120 Stationery and Office Supplies Merchant Wholesalers, 424110 Printing and Writing Paper Merchant Wholesalers
- Suggested ISO General Liability Code(s): 16005
- Suggested Workers Compensation Code(s): 8018
Description for 5112: Stationery and Office Supplies
Division F: Wholesale Trade | Major Group 51: Wholesale Trade-non-durable Goods | Industry Group 511: Paper And Paper Products
5112 Stationery and Office Supplies: Establishments primarily engaged in the wholesale distribution of stationery and office supplies, including computer and photocopy supplies, envelopes, typewriter paper, file cards and folders, pens, pencils, social stationery, and greeting cards.
- Albums (photo) and scrapbooks-wholesale
- Business forms-wholesale
- Carbon paper-wholesale
- Commercial stationers (not printers)-wholesale
- Computer paper-wholesale
- File cards-wholesale
- File folders-wholesale
- Greeting cards-wholesale
- Inked ribbons-wholesale
- Looseleaf binders-wholesale
- Manifold business forms-wholesale
- Marking devices-wholesale
- Mimeograph paper-wholesale
- Office supplies-wholesale
- Pens, writing-wholesale
- Photocopying supplies-wholesale
- Ribbons, inked-wholesale
- Sales and receipt books-wholesale
- Stationery and stationery supplies-wholesale
- Tabulation cards-wholesale
- Writing ink-wholesale
Stationers Wholesaler Distributor Insurance - The Bottom Line
Not all stationers wholesaler distributor insurance polices are created the equally. If you are searching for business insurance, or just want to see if you have the best fit coverage, speak to an skilled broker to take a look at your situation.
In many cases they can save you moneys 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.