Insuring What Matters
Manufacturers & Wholesalers Insurance
Manufacturers and wholesalers produce, store and transport various types of goods. As a manufacturer or wholesaler do you have the right insurance coverage?
Below is a list of areas to consider when looking for insurance coverage:
Property exposure from fire and theft. Fire, smoke, or water damage may not cause significant damage to some products, although some products and the packaging will be affected. However, ignition sources are usually limited in a simple wholesale operation. If any items contain flammables, careful control and evaluation is needed. Items to consider for fire exposures are the type of storage racks; whether palleted or on the floor; whether or not wood pallets are made by the operation; and the size, shape, cut-offs, and fire walls within the storage facility. Exposure to theft can be low for ordinary items and high for valued collectibles. Should higher theft exposure exist, the operations handling of premises theft exposure is important to review. Does the operation have alarms? Security guards? Adequate locks and controls?
Inland marine exposure from Goods in Transit. The goods may be on owners’ trucks, common or contract carriers or other modes of transportation. Are the goods subject to breakage losses or transit damage? Does the operation do its own transportation, or does it contract the services of others? Normally, collectibles and glassware products have very high exposure to breakage during transit. Packing is a primary concern and must be carefully done.
Crime exposure from Employee Dishonesty. All ordering and inventory control must be separated in order to maintain checks and balances.
Occupiers’ Liability is limited, provided no customer pickup is permitted. If customers pick up goods, loading docks must be user-friendly and areas for pickup must be clearly marked, with customers confined to the specific areas.
Products exposure is low unless there is direct importing. Vendor’s endorsements from the manufacturers are helpful.
Automobile liability comes from two different sources. First, there is the salespersons’ fleet. Where do they travel? Where are vehicles maintained? Is personal use permitted? Second is the vehicles that deliver. What is the radius of operations? What is the procedure for drivers who are involved in accidents or violations? Where are vehicles stored when not in use? Is there unloading? For all auto exposure, MVRs must be ordered on a regular basis, and vehicles must be maintained with documentation kept in a central location.
Workers compensation exposure comes primarily from lifting which can cause back injury, hernia, sprain, and strain. What kind of training do employees receive, and what types of material lifting or conveying devices are used within the warehouse or wholesale facility? There is also the automobile delivery hazard. What is the training of drivers? Are periodic physicals required? Are driving records reviewed periodically? Do drivers do the unloading? Is this done manually, or are lifting and conveying devices used during loading and unloading?
Minimum recommended coverage:
Business Personal Property, Business Income, Accounts Receivable, Computers, Goods in Transit, Employee Dishonesty, General Liability, Employee Benefits, Umbrella, Business Automobile Liability and Physical Damage, Hired and Non-owned Auto, Workers Compensation
Other coverages to consider:
Building, Leasehold Interest, Real Property, Money and Securities, Dishonesty, Disappearance and Destruction, Computer Fraud, Employment Practises Liability
We Can Help
Those are just some of the areas where we can help protect you against losses when unanticipated events and incidents can interfere with the continued operation and viability of your manufacturing or wholesale business. Your day to day operations are complicated enough - let us help protect their future.
Contact us today to schedule your FREE complimentary consultation.
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