Specialty Dealers And Distributors Insurance

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The Specialty Dealers And Distributors Insurance Guide

Dealers And Distributors Insurance

Dealers And Distributors Insurance. This guide provides information on excess, surplus and specialty lines small business insurance policies and risks.

Here you can find basic descriptions of the specific industry risks or specialty coverage types available for Dealers And Distributors Insurance.

For certain types of small businesses, particularly new ones - it is often very hard to know what types of commercial insurance is needed, what the risks are that should be covered - and where to find coverage.

We wanted to provide reference for specialty commercial insurance to help our readers get a better understanding of Dealers And Distributors Insurance policies they might need to do business.

Learn about Specialty Dealers And Distributors Insurance to better understand common risks, exposures and the types of commercial insurance coverage available to protect your small business and it's operations.

Dealers And Distributors Insurance Types

Click on the links below to learn more about Specialty Dealers And Distributors Insurance types and coverages:

What Type Of Insurance Do Adult Book Stores Need?

Adult book stores are difficult risks to place because of the nature of their operations and the merchandise carried. They sell a wide variety of X-rated books, magazines, movies, videos, sex objects and devices. Most are located in run-down, inner-city areas or near highways, far from suburban shopping malls. Stores are usually congested, dark, have poor housekeeping, and cater to an unsavory clientele. The burglary and theft exposure is greater than for most retail classes. Rates are usually surcharged.

What Is Anhydrous Ammonia Liability Insurance?

Both the property and the liability exposures of anhydrous ammonia dealers are significant due to the potential for explosion. The primary legal use of anhydrous ammonia is to fertilize crops. Unfortunately, it also has several illegal uses, such as making explosives, methamphetamines, and freebase cocaine.

What Type Of Insurance Do Automobile Dealers Need?

A number of package policies for franchised automobile dealers have been developed and are readily available. They usually provide property, auto dealers' premises and operations liability, garagekeepers insurance, and dealers' physical damage coverages. Loss of business income, employee tools, and other optional coverages are also available.

What Type Of Insurance Do Bicycle Dealers Need?

Bicycle dealers require coverage for their property and liability exposures. Major property coverages needed include direct damage, theft, business income, and extra expense. Transit and automobile coverages are important if the dealer delivers. Other liability exposures may include bicycle rental, service, and repair. Products coverage similar to that provided to a manufacturer may be required if the dealer imports bicycles directly from foreign manufacturers.

What Type Of Insurance Do Boat Dealers Need?

Boat dealers sell new and used watercraft. The dealers may be land or water based. Policies designed for boat dealers cover stocks of boats, accessories, and supplies held for sale. Property and marine coverage is usually written on an "all risks" type basis. Coverages are similar to open lot automobile coverage and garagekeepers legal liability.

What Type Of Insurance Do Chemical Distributors Need?

Chemical distributors require significant liability insurance limits in order to protect them from environmental impairment lawsuits related to the potential release of chemicals that they store and distribute to others. They have a significant workers compensation exposure because of the toxic properties of many of the chemicals plus the catastrophic explosive exposure of certain chemicals. Property and business income exposures are also challenging. The auto exposure has standard motor carrier concerns with the added environmental impairment exposure resulting from overturn or collision.

What Type Of Insurance Do Coin And Stamp Dealers Need?

Coin and stamp dealers are not eligible for coverage under individual coin and stamp collections floaters. Markets are available to insure property that consists of stocks of stamps or coins, including property of others on approval or consignment. The coins and stamps are covered while on a specified premises, while in transit, or at trade shows and exhibitions. All risk-type perils or special causes of loss apply with very limited exclusions. Coverage can be tailored to fit the needs of individual dealers. A significant underwriting problem is valuing inventory because of sharp or frequent fluctuations in market prices.

What Type Of Insurance Do Cosmetics Distributors Need?

Cosmetics distributors may supply beauty products through standard retail operations or may develop retail partnerships whereby the retailer sells the product through parties or in other methods to distribute the product. The more engaged the distributor is in the process of developing, recruiting and rewarding the retailer the more exposures the distributor has. All distributors have significant property exposure if stored on premises. Lacquer nail polish has a low ignition point. Cosmetics are highly susceptible to loss and will have little salvage value. Workers compensation will vary based on the types of activities in which the distributor is involved. Transportation issues are significant because the goods being transported will have little salvage value following collision or overturn.

What Is Driveaway Collision Coverage?

Auto dealership coverage forms limit collision coverage for covered autos to only autos that are driven or transported up to only 50 miles from the point purchase/distribution to their final destination. This coverage deletes the 50-mile radius requirement. This coverage is written on a reporting basis. Coverage applies based on complete information about the vehicle and the start and end points of the transportation.

What Type Of Insurance Do Durable Medical Equippment Distributors Need?

Durable Medical Equipment (DME) is equipment to aid a medical condition that patients can use multiple times. Examples are wheelchairs, walkers, oxygen equipment, canes, patient lifts, and CPACs. Defects in the equipment can worsen the condition of the patient so coverage for certain types of equipment can be difficult to place. Distributors of foreign manufactured equipment may be considered the manufacturer if U.S. based insurance is unavailable.

What Type Of Insurance Do Equipment And Tool Rental Services Need?

Equipment and tool rental risks are difficult to place. Coverage for tools and equipment rented to persons who are often unfamiliar with the equipment is needed because the items rented may be damaged or broken. The liability exposure is also significant because of the renter's unfamiliarity with the equipment especially when chainsaws and other power tools that can cause serious injury are available.

What Type Of Insurance Do Firearms Dealers And Distributors Need?

Comprehensive insurance programs are available for firearms wholesalers, distributors, retailers, gunsmiths, ammunition manufacturers, and indoor and outdoor shooting ranges. They are treated as specialty business because of the hazards that firearms and live ammunition present. Commercial general liability, products liability, and broad form vendors' coverages are important because many state and federal regulations require them. Property coverage on firearms and ammunition may also be available. Deductibles usually apply to premises hazards.

What Type Of Insurance Do Flea Markets And Antique Shows Need?

Individuals who sell items at flea markets, antique markets, and similar venues have property and liability exposures. They need coverage to protect their property and stock while it is in transit as well as while it is at the market. They need liability coverage for their actions and also to satisfy the market's requirement that the vendor provide a certificate of insurance as evidence of its general liability coverage.

What Type Of Insurance Do Liquefied Petroleum Gas Dealers Need?

Liability insurance on propane and bulk oil dealers requires specialty underwriting. These businesses need insurance coverage at their storage locations as well as off-premises where the fuel is delivered. There is a significant exposure to catastrophic loss and inspecting the facilities is usually a part of the underwriting process.

What Type Of Insurance Do Liquor Dealers And Stores Need?

Because of the tremendous exposure to burglary losses of stock and the need to maintain an adequate inventory of whiskeys, wines, and liquor, liquor dealers and stores are target risks for burglars and other criminals. Some insurers offer needed coverages piecemeal, on a stand-alone basis. Others combine all the necessary coverages, including liquor liability, in a package policy. These package policies include high liability limits for both commercial general liability and liquor liability. Careful consideration must be given to the firm's ownership, peak concentration of values at certain times of the year, the firm's business reputation, and adequate lighting and police surveillance when the store is not open for business.

What Type Of Insurance Do Medical Device Distributors Need?

Many companies distribute multiple types of medical devices. The devices can consist of simple disposable items or may be delicate items that are implanted inside the patient. Distributors of some of the more complicated devices may actually enter the operating room to assist in sizing the most appropriate device.

What Is Mobile Home Dealers Insurance?

Mobile home dealers are similar to auto dealerships because they need coverage on their stock of unsold mobile homes on their lots. An open lot dealers physical damage coverage form or policy can be used to provide such coverage. These forms can also be used to cover mobile homes, travel trailers, and other types of recreational vehicles the dealership sells. In addition, they can cover such stock on premises, while in transit, and while being installed at the purchaser's location. Coverage is usually written on a reporting basis, where the dealer reports the values of its inventory monthly, including a provisional deposit premium and adjustment at the end of the policy period.

What Type Of Insurance Do Motorcycle Dealers Need?

Insurance on motorcycle dealers is usually written on modified auto dealers liability forms specifically adapted to motorcycle dealers. One coverage includes premises liability for sales operations in connection with service and repair of customers' motorcycles and motor scooters. Another covers motorcycles of customers while in the dealer's shop for repair, similar to garagekeepers legal liability coverage. A dealers supplemental physical damage policy covers the dealer's interest in its stock of unsold motorcycles. It covers the stock of motorcycles for certain named perils, such as fire, theft, collision, vandalism, riot, etc. Coverage may be written on a reporting form basis to cover the monthly fluctuations in values of stock.

What Type Of Insurance Do Nanomaterial Distributors Need?

Nanomaterials are used in a variety of manufacturing operations. Distributors provide these materials based on needs of customers. These distributors have very specialized knowledge of the materials. The shipping and handling are important due to potential environmental contamination. Nanomaterial manufacturing is a worldwide industry so importing and exporting risks may be significant.

What Type Of Insurance Do Oil Jobbers And Petroleum Distributors Need?

Petroleum distributors face many risks. The primary concern related to property is damage to their equipment by fire and explosion. Large distributors and even oil and gasoline service stations face the difficult liability exposure of pollution from underground oil or gasoline storage tanks. A number of insurers write a full package of coverages for oil jobbers and distributors, including commercial general liability, commercial auto, property, and workers compensation. Coverage is available for retail service stations, wholesale operations, bulk stations, and products being transported in tankers to and from bulk oil and LPG stations to retailers.

What Type Of Insurance Do Precious Metal Dealers Need?

Property coverage on this class of business is usually written on an "all risks" basis using a coverage form and approach similar to the jewelers block policy. The theft exposures are similar to the theft exposures of jewelry stores and pawnshops. Smelters, refiners, and warehouses can also be covered. Transit coverage from outside locations to the store is available as is coverage to and from bank vaults where expensive gold and silver jewelry and accessories are kept.

What Is Privacy Insurance?

This coverage protects the insured when confidential information belonging to clients, employees or vendors is breached because of an alleged error on the insured's part. Coverage is provided for both defense and indemnification. Coverage also includes the cost to notify affected individuals.

What Type Of Insurance Do Recreational Vehicle Dealers Need?

Recreational vehicle dealers need liability and physical damage insurance coverage. These coverages may be offered separately or on a combined basis, depending on the insurer. Snowmobiles, campers, motor homes, mopeds, trail bikes, and all-terrain vehicles are some of the more popular vehicles. Liability insurance covers all sales operations and demonstrations and may extend to include completed repair and service operations and premises. Floor plan coverage for damage to the dealer's stock of recreational vehicles may be available. Coverage for customers' vehicles can also be provided while they are on the dealer's premises for service or repairs. Optional rental and racing sponsorship liability coverages can be arranged in some markets.

What Type Of Insurance Do Tire Retreaders Need?

Tire retreading presents a significant products liability exposure, making this a difficult class of business to place. Several programs available for tire dealers and retreading operations provide property, crime, loss of business income, and commercial general liability coverages. Monoline unsupported products liability coverage is also available.

What Type Of Insurance Do Used Car Dealers Need?

Used car dealers are a difficult class to underwrite and place because of a number of problem exposures. Examples are the difficulty in establishing the proper valuation of used vehicle stock due to value fluctuation and products-completed operations concerns when the dealership provides repair and maintenance services. Theft, hail, and vandalism are concerns in certain areas because the vehicles are typically kept in open lots. Dealers that provide their own financing have additional insurance needs.

Dealers And Distributors Insurance - The Bottom Line

We hope that the Dealers And Distributors Insurance helps you to better understand the some of the specialty small business commercial insurance policies available for your business. To find out what types of coverage your unique business needs, speak to a professional commercial broker with experience in insuring businesses like yours.

Specialty Small Business Insurance Guide By Industry, Risk Or Policy Type

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.

Small Business Information

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 InsuranceWhat 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 InsuranceWhat 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 InsuranceWhat 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 InsuranceWhat 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 InsuranceWhat 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 PoliciesWhat 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 InsuranceWhat 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 BondWhat 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
Small Business Commercial Insurance

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.

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