Distributor Needs Good Commercial Insurance

While the distributor industry may provide excellent business opportunity, it also has a high rate of liability risk exposure. As in any venue of life, anything can happen, at any time – and like most of us know all too well, it often does at the least predictable of times!

Just as a car, truck or motorcycle driver should equip himself with tailored auto insurance; and a homeowner or home renter with customized homeowners or renters insurance; the distributor business owner needs the unique form of commercial insurance that is geared towards his line of work.

I’ve compiled the following genuine insurance claim examples that have resulted in compensation to the insured. These serve to illustrate just how losses and damages can occur in the distributing business.

Business Property Coverage

• After locking up and returning home, a skin-care distributor was alerted of bad news by police detectives. There had been a break-in and unlawful entry into his business. Besides taking every single piece of computer equipment in his office, the thieves had stolen numerous valuable items from the distributing warehouse: the computer, the business shipping computer and printer, photography studio cameras, and all of the items in stock reserved for future shipments.

General Liability Coverage

• As the workers of a small fruit and vegetable distributing company delivered their cases to the neighborhood produce store, one delivery guy accidentally pushed his full hand-cart into an elderly shopper. The man incurred painful injuries as a result and required medical care at the hospital.

• Following a shipment of related merchandise to a home improvement super store, an insurance claim was brought against the distributor. The reason why? A shopper had failed to notice the papers and packaging left behind by the delivery man in the parking lot. The middle-aged woman slipped on the strewn wrapping and fell. The injuries necessitated a visit to the doctor’s office.

For proper coverage, a distributor is best off going to an experienced independent insurance agency that deals with financially strong companies who have the reputation to efficiently represent their policyholders.

Depending on your needs, a good commercial policy may have the following coverage benefits and more:

• No deductible for general liability
• Bodily injury that includes illness resulting from mental or emotional anguish
• Consideration of up to $5,000,000 in receipts
• Has a business owners policy form
• Includes hired, as well as non-hired auto coverage
• Includes personal property off premises, as well as property that is in transit
• Includes electrical data and computer operation interruption