DISTRIBUTOR INSURANCE IN MASSACHUSETTS

What coverages are included in wholesaler and distributor insurance?

Most wholesaler and distributor insurance policies provide multiple coverages. While specific coverage options can vary, many of these policies offer property and liability protections such as

• General Liability Coverage, which may protect against common accidents that occur at a distribution facility and result in harm to other parties
• Product Liability Coverage, which may protect against harm caused by goods that are damaged while at a facility
• Commercial Umbrella Coverage, which may protect against expensive lawsuits with a secondary level of liability protection.
• Commercial Property Coverage, which may protect a distribution facility itself, facility-owned equipment and facility-owned supplies against damage
• Property in Transit Coverage, which may protect goods as they’re transported to, transported from, or stored at a distribution facility
• Equipment Breakdown Coverage, which may protect against failure of essential equipment used at a distribution facility
• Business Income Coverage, which may cover protect against sustained losses of revenue following damage to a distribution facility
• Commercial Auto Coverage, which may protect against accidents involving distributor-owned vehicles

Still, other coverages are often available. Employment practices liability coverage, cyber liability coverage, crime coverage and others are protections to consider.

Do distributors need workers' compensation insurance?

Massachusetts state law generally requires businesses that have employees to carry workers' compensation. Thus, distributors generally need coverage. This broadly applies to local distributors, statewide distributors, and regional and national distributors that have facilities within the state.

Whether workers' compensation is included within a wholesaler and distributor policy depends on the policy. The coverage might be included within a policy, or it might be purchased separately as a standalone protection.

When are independent distributors responsible for insuring goods?

For distribution facilities that house other businesses’ goods, insurance requirements depend on the contracts signed with these other businesses. 

In some situations, businesses might be responsible for insuring their own goods for the entire time the goods are housed. Other times, distribution centers are frequently responsible for insuring goods from when they arrive at a loading dock until they leave the loading dock. Still, other situations could call for coverage that applies even before or after goods arrive at/leave the loading dock.

An experienced insurance agent can help distribution centers ensure they have coverage for the entire time that they need it.

How much are the premiums for wholesaler and distributor policies?

The premiums charged for wholesaler and distributor policies vary, as they’re based on a multitude of factors. Some of the factors that can impact cost are the:

• Number and location of distribution facilities
• Quantity and value of products
• Types of products
• Extent of operations
• Past claims history

An independent insurance agent can help distributors explore policy options, as independent agents are able to check quotes from multiple insurance companies.

How can wholesale distributors get distributor insurance?

For help insuring distribution centers in Massachusetts, contact the independent insurance agents at Garrity Insurance. Our agents will work with you to identify specific coverage needs, and then we can help you identify the best distributor insurance policy that meets those needs. With our assistance, you can have confidence that your centers, goods housed and business are well protected.