Handling goods on the scale that wholesalers do presents substantial risks. Purchasing distributor insurance can help protect Massachusetts wholesalers from many of the risks they face.
Distributor insurance is specialized commercial insurance for wholesalers and distributors. Policies typically protect against both property and liability risks that these businesses face.
Most wholesaler distributors in Massachusetts should have wholesaler and distributor insurance regardless of the goods they handle. The insurance can be used across many industries. For example, food and beverage distributors, consumer product distributors, furniture distributors, electronics distributors, industrial supplies distributors, importers and others may all want this insurance.
In select cases, distributors that handle highly specialized goods (e.g. medications) may need a specialized policy or another type of policy. An insurance agent who knows wholesaler and distributor insurance well can help businesses find specialized policies if necessary.
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
Still, other coverages are often available. Employment practices liability coverage, cyber liability coverage, crime coverage and others are protections to consider.
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.
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.
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:
An independent insurance agent can help distributors explore policy options, as independent agents are able to check quotes from multiple insurance companies.
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.