Food spoilage, thefts of goods in transit, and vehicular accidents are just a few of the unique challenges distributors face. You have many similarities to wholesalers, and yet you have risks that are uniquely yours – particularly when it comes to liability.
Types of Distribution Insurance to Consider
It’s important to work with a reputable independent insurer, like Phoenix Insurance Group who servers distributors through central and north New Jersey and beyond, that offers sound advice and guidance as to the types of distribution insurance and the amounts of coverage that will serve you best.
These are some of the standard policies your distribution business needs to consider. Remember, though, that your business is unlike other businesses, and it is important to discuss your business and needs with an insurance agent so that you don’t neglect coverage that’s essential for your business.
Here are a few important distribution insurance coverages to consider.
Products Liability Coverage
This coverage offers protection for your business if liabilities arise from defects or flaws in the products you distribute. It can help insulate your business, up to the covered amount, from legal defense costs and damages awarded in the event that claims are filed against you for injuries, property damages, or deaths resulting from the use of these products.
Property in Transit Coverage
This insurance protection extends to property belonging to the business that is damaged during the shipping process.
Business Income Insurance / Business Interruption Insurance
This coverage helps replace income that is lost during the aftermath of a covered event. Sometimes the loss of income is the result of closings forced by the disaster and at other times it is the result of the rebuilding process.
Expenses continue even when the business isn’t operational and this coverage helps your business continue paying those bills while making repairs and preparing to reopen.
Commercial Auto Insurance
Whether you have an entire fleet of vehicles to assist in your distribution operation or you keep things simple with just one distribution vehicle, you probably have company vehicles of some sort to facilitate the mobile nature of a distribution business. If you have vehicles operating on behalf of your business you need adequate insurance coverage.
Depending on the nature of your distribution business, you may need specialized business auto insurance to cover things like prototypes, dangerous materials, inventory, and high-value items – not to mention additional or umbrella liability coverage for your business auto needs.
What Types of Businesses need Distribution Insurance?
There are distribution businesses in almost every industry – and even some that cover multiple industries. Your insurance needs are as unique and individual as the industries you serve. These are just a few of the distribution industries Phoenix Insurance Group offers insurance coverage for:
- Medical Supplies
- Pharmaceutical Products
- Plumbing and Construction Supplies
- Raw Materials Supplies
- Electronic Products
- Dangerous Chemical Supplies
- Heavy Machinery
- Automotive Parts and Product
- Food and Beverages
- And more.
With such a diverse group of industries served, it’s hard to imagine a distribution service or business we can’t find the right coverage for.
Mitigating Risks for Distributors
At Phoenix Insurance Group, our primary goal is to help you minimize your distribution business risks. We will assess your risks and help you find the right insurance coverage to meet your needs.
We’re also happy to discuss things you can do, as a business, to reduce your risk exposure. This includes implementing safety standards for drivers and requiring ongoing training for worker safety.
It also means that we want to help protect you from risks related to people further up the supply change, such as suggesting that you establish contractual requirements with your suppliers or manufacturers that they notify you of changes to their insurance coverage (some of which may leave you vulnerable to liability claims) in a timely manner so that you can assess how these changes impact your insurance situation and needs.
Phoenix Insurance Group wants to see your distribution business succeed. Call us today at: 908-879-6500 to learn how we can help you get the distribution insurance coverage you need to help your business navigate safely through any bumps in the road ahead.