Frequently Asked Questions About
Commercial General Liability Insurance
How much does small business insurance cost?
Costs can vary widely based on industry and are also determined by zip code and often payroll and/or gross sales. Request a free quote to get an exact number. (read more)
What kind of business insurance do I need?
Most business owners need General Liability Insurance at the very least. If you have any non-owner employees, you will need workers compensation insurance too.
What is a Certificate of Insurance?
A Certificate of Insurance is proof of coverage. It lists the type and amount of liability coverage you have and other policy information when a third party requests it. (read more)
Is business insurance tax deductible?
Yes. you can deduct the cost of commercial insurance premiums. The IRS considers insurance a cost of doing business as long it benefits the business & serves a business purpose.
Wholesaler Distributor Insurance Oregon
Wholesaler Distributor Insurance Oregon. The wholesaler distributor business is booming, and if you're part of the trend, then you need to protect your business' future and financial well-being with proper business insurance. Like any other business, your wholesale distribution business should be protected fully from financial risks.
Merchandise wholesalers receive a wide range of items from foreign or domestic manufacturers for distribution to various types of retailers. Stock may include clothing, gifts, glassware, hardware, novelties, paper goods, or plastic items, which tend to be low in value and are easily replaceable. The distribution center may be open 24 hours a day. Generally, the products are delivered to the customer on the distributor's vehicles.
You need to keep workers safe and deliver your goods promptly. If a customer or other third party claims they were injured on your premises, you may find yourself paying thousands of dollars in legal fees, court fees and judgment settlement costs. You manage products and people that's why you need wholesaler distributor insurance Oregon protection. A disruption anywhere in your supply chain can impact your ability to make payroll an pay bills.
Wholesaler distributor insurance Oregon protects your business from lawsuits with rates as low as $87/mo. Get a fast quote and your certificate of insurance now.
Protect Your Wholesaling Distributing Business
OR wholesalers and distributors do millions of dollars in business each year, and there are nearly a half million wholesalers in the United States. Some of the basic wholesaler distributor insurance Oregon coverages that you need to ensure that your business stays healthy and prosperous despite any claims brought against you include:
- Property insurance coverage. This coverage is valuable because it covers your physical location, including your warehouse or shipping center.
- General liability coverage. If your OR business activities cause property damage or bodily injury, this coverage kicks in and covers the costs of those affected.
- Commercial vehicle insurance. If you own or lease a vehicle that is used for business purposes, then commercial vehicle insurance is an essential requirement for your business.
- Fidelity coverage. Employee theft is mitigated by this essential coverage.
- Worker's compensation insurance. Protect your employees with worker's compensation insurance. In most states, this coverage is required. In others, it should be considered, since it can stave off liability claims against your business when an employee is hurt or becomes ill due to a work-related peril.
- Umbrella liability coverage. This is an additional amount of coverage beyond your basic liability limits.
Optional Coverage to Consider for Your Wholesale Distribution Business
While the above-mentioned coverage types are standard for most businesses, including wholesaling and distributing, there are other types of wholesaler distributor insurance Oregon coverage that you might consider purchasing, based on your business model and the express needed of your business. Some to think about include:
- Data protection coverage. This coverage protects your business from data breaches involving customers' sensitive data and financial information.
- Flood insurance. Most property insurance coverage does not afford flood protection. This is particularly true if your business is located in a designated flood zone.
- Professional liability insurance. This insurance, sometimes dubbed omissions and errors insurance, covers your exposure to liability from omissions or errors that cause a client harm.
- Business interruption coverage. If your business is forced to undergo a work stoppage, this coverage helps keep your business operational. For example, if your warehouse is destroyed by fire, this coverage helps mitigate business expenses while you recoup.
Working with a knowledgeable agent who understands the wholesaling distributing business is important to finding the right level of coverage with limits that allow for all the potential perils you face as a business owner. For example, your agent can help you understand the way that premiums are calculated based on inventory. If your inventory fluctuates throughout the year, as is the case with most businesses, your agent can help you learn the nuances of reporting inventory levels throughout the year, so that you pay a wholesaler distributor insurance Oregon premium based on the appropriate level of goods that you need to insure.
It is also important that your OR wholesaling business protect the goods that you have in transit to other locations. This is a rather complicated scenario, since you may have goods being shipped by air or by truck, all with different contracts between you and the shipper and the shipper and the end customer. A qualified agent can ensure that you get the right type of wholesaler distributor insurance Oregon coverage for these special situations that are unique to the wholesale insurance niche.
OR Wholesale Distributor's Risks & Exposures
Property exposures come from multiple ignition sources, open construction, and the combustibility of stock and their packaging materials. Ignition sources include electrical wiring and equipment. 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 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 can be a concern if items stocked have a high street value. Alarms, guards, fencing and other security precautions must 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. Good security systems should be in place to discourage employee theft. Physical inventories should be conducted at least annually.
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' 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, items are generally delivered to customers on trucks owned by the distributor. Goods can be damaged during transit by collision or overturn, but most can be salvaged and do not have a high breakage potential.
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. Products should be marked for easy access in case of recall.
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 and cherry picker operators must be properly trained. Shelving must be stable to prevent stored goods from falling onto workers. Floor coverings or coatings in the warehouse can pose slip and fall hazards. Housekeeping is critical.
Commercial auto exposure comes from 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 a central location.
Buying Wholesaling Distributing Insurance
As a OR wholesale business owner, you know the risks involved in the business better than anyone. Analyze those risks prior to deciding on your coverage level, based on your business' physical location and property, the employees you have working for you, the inventory you need to protect, the equipment your business owns, and other factors.
Compare quotes among several companies to find the right level of affordability and protection for your unique business. In some cases, your business may need blanket coverage, such as if you have a vehicle fleet to protect. You may need to buy surplus coverage or specialty coverage for particular types of products that you sell.
A seasoned agent can help you achieve peace of mind that your business is fully protected, your assets are insured to the fullest, and any claims arising against your business won't damage your business financially, so you can continue to grow and prosper in the wholesale distributor industry.
Oregon Business Economic Outlook & Commercial Insurance Regulations
If you are thinking about doing business in the Pacific Northwest, you might have your sights set on Oregon. However, before you set up shop, it's important for you to have an understanding of the economy - so that you can make the best decisions possible. It's also important for you to know what type of business insurance policies you are legally required to carry in order to do business in OR.
In order to help set you up for success, below, we highlight some of key information regarding the economy in Oregon, as well as the regulations regarding commercial insurance.
The Economic Outlook In Oregon
In 2018, Oregon is projected to see an increase in their economy. The unemployment rate was 4.1 percent at the end of 2017, and it is expected that it will either stay the same or drop even lower by the end of 2019.
There are several industries that are expected to contribute to the job market and the economy overall in the state of Oregon. The industry that is expected to see the most gain in this state during the 2018 calendar year is construction, with an increase of 10.5 percent. The manufacturing industry is also expected to see significant growth, with a forecasted increase of 4.3 percent. Other industries that are expected to see growth in OR in 2019 include:
- Financial Services
Insurance Requirements For Oregon Businesses
The Division of Financial Regulation oversees the insurance industry in Oregon. Here workers compensation insurance is mandated. If you employ one or more person, whether that person is full-time or part-time, or is hourly or salaried, you are legally required to carry this type of coverage. Additionally, you must carry commercial auto insurance if you operate vehicle for any business-related purposes, whether it's meeting with clients, making deliveries, or transporting goods.
While commercial general liability insurance is not required in OR, it is highly recommended. This type of coverage will protect you from any lawsuits and the accompanying settlements that may arise in the event that some slips and falls, or claims that you damaged their property. You should also consider investing in commercial property insurance, as it can help to offset the cost of any property losses that you might experience.
Additional Resources For Manufacturing & Wholesaler Insurance
Read informative articles on small business manufacturing and wholesale insurance. Manufacturing and wholesale companies face many risks due to the nature of their business operations.
For manufacturers and wholesalers, having the proper coverage is very important. You will need Products/Completed Operations Liability Coverage to protect you against injuries or property damage cause my the products you make or sell.
Manufacturing is an extremely broad category that includes countless potential hazards and exposures in virtually all coverage areas. Because of this, every individual manufacturer is unique and a specific risk survey of every operation is advisable.
The basic insurance needs for every class of business or operation includes property coverage for buildings, machinery and equipment, as well as for raw stock and finished products. Liability insurance for premises exposures is important but products liability insurance presents greater concerns so these exposures and coverage needs must be evaluated carefully.
In addition, protection for injuries to workers, environmental coverages and automobile insurance are priority items.
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.
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.
What does the insured does that could result in a covered loss? The insuring agreement only requires that the insured be legally obligated to pay damages for injury to others or damage to their property included within the products-completed operations hazard covered by the insurance.
Because of this, every product manufactured and completed operation exposure for each named insured must be determined, described and evaluated to be certain that each represents acceptable exposures, or are acceptable classes of business to the insurance company providing coverage.
Once the extent of all business activities and operations is determined, the process of identifying hazards begins. The first step in the process is completely listing and describing all current products being manufactured and projects being worked on.
The next step is obtaining the same information for discontinued products and completed projects for the past five to 10 years, depending on the products or projects involved. This should include an explanation of why the products were discontinued. If some completed projects were of a different type than those currently being worked on, an explanation is in order, including whether the insured may resume them in the future.
Request a free Wholesaler Distributor Insurance Oregon quote in Albany, Ashland, Astoria, Aumsville, Baker, Bandon, Beaverton, Bend, Boardman, Brookings, Burns, Canby, Carlton, Central Point, Coos Bay, Coquille, Cornelius, Corvallis, Cottage Grove, Creswell, Dallas, Damascus, Dayton, Dundee, Eagle Point, Estacada, Eugene, Fairview, Florence, Forest Grove, Gervais, Gladstone, Gold Beach, Grants Pass, Gresham, Happy Valley, Harrisburg, Hermiston, Hillsboro, Hood River, Hubbard, Independence, Jacksonville, Jefferson, Junction, Keizer, King, Klamath Falls, La Grande, Lafayette, Lake Oswego, Lakeview town, Lebanon, Lincoln, Madras, McMinnville, Medford, Milton-Freewater, Milwaukie, Molalla, Monmouth, Mount Angel, Myrtle Creek, Myrtle Point, Newberg, Newport, North Bend, Nyssa, Oakridge, Ontario, Oregon, Pendleton, Philomath, Phoenix, Portland, Prineville, Redmond, Reedsport, Rogue River, Roseburg, Salem, Sandy, Scappoose, Seaside, Shady Cove, Sheridan, Sherwood, Silverton, Sisters, Springfield, St. Helens, Stanfield, Stayton, Sublimity, Sutherlin, Sweet Home, Talent, The Dalles, Tigard, Tillamook, Toledo, Troutdale, Tualatin, Umatilla, Union, Veneta, Vernonia, Waldport, Warrenton, West Linn, Willamina, Wilsonville, Winston, Wood Village, Woodburn and all other cities in OR - The Beaver State.
Quotes from leading small business insurance carriers including: ACE, AmTrust, Chubb, Cincinnati, CNA, Colony, Employers, Evanston, Fireman's, Foremost, Guard, Hanover, Hiscox, Liberty Mutual, LLoyd's of London, Markel, MSA, Nationwide, Penn America, Philadelphia, Prime, Progressive, Scottsdale, The Hartford, Travelers, USLI, Utica First, Western World, Zurich & others.