The manufacturing, wholesale, and distribution sectors face unique risks every day. Storms, fires, and floods can damage products within a warehouse, thieves can target inventory, and unpaid deliveries or late supplier shipments can eat into your profits. To mitigate the varying risks, all companies within the wholesale and manufacturing industries require comprehensive business insurance options.
Common Risks That Require Business Insurance in Manufacturing and Wholesale Sectors
The manufacturing industry includes all businesses that produce goods through labor, automated equipment, tooling, and processing. Often, the manufacturing sector begins with raw materials and creates products for B2B or B2C channels.
On the other hand, the wholesale sector sells wholesale merchandise without transformation. Often, wholesalers work within the agriculture, manufacturing, mining, and publishing industries. Wholesalers are the intermediaries in the distribution of merchandise.
Common risks wholesalers should prepare for include:
- Property damage
- Legal penalties
- Theft
- Equipment breakdown
Whereas manufacturing businesses have to prepare for the following:
- Workplace safety
- Product liabilities
- Supply chain interruptions
- Errors and omissions
When considering business insurance, manufacturers and wholesalers must consider their unique needs in addition to local, state, and federal regulations.
Types of Business Coverage to Consider
When researching your coverage options, you’ll find various policies suitable for the wholesale and manufacturing industries.
Commercial General Liability
General liability coverage protects against customer injury and property damage claims. Additionally, general liability covers harm caused by products, advertising injuries, and libel.
Commercial Auto Liability
Commercial vehicles are standard in the wholesale and manufacturing sectors. If an employee causes an accident while performing a work-related task in one of your vehicles or their personal vehicle, your company could be liable for damages. Commercial auto protects your business against those claims.
Workers’ Compensation
Workers’ compensation is a necessary coverage when you have employees. Laborers face injuries every day from slip and fall incidents, falling objects, and lifting heavy objects. Workers’ compensation helps cover time off and medical-related expenses to help your workers return to the warehouse healthy.
Cyber Insurance
Nowadays, most businesses have an online presence. Cybercriminals may attempt to access client information, including bank or credit card information and personal files. Cyber insurance helps protect against the various cyber risks that modern companies face.
Tailored Coverage to Address Unique Needs
When it comes to business insurance, there are no one-size-fits-all options. Every company has its own array of risks that require tailored solutions to mitigate against. When you work with an insurance broker, you have the option of a risk assessment.
During a risk assessment, the agent will analyze your business operations to determine which coverages suit your company. For example, if you have a fleet of vehicles, you may need higher coverage than a company without company-owned cars. Tailored insurance provides comprehensive coverage that suits your company and ensures you don’t overpay or lack coverage when needed.
Working with an experienced broker gives you access to an accurate assessment of your manufacturing or wholesale business.
Business Insurance for Wholesalers and Manufacturers
To operate a company in the United States, there are various business insurance coverages that you must carry to maintain your licensure. In addition to remaining current with the latest regulations, insurance is a financial safety net in the wholesale and manufacturing industries. To learn more, contact us at BTC Insurance Services for comprehensive solutions.
About BTC Insurance Services
Founded in 2011, BTC Insurance Services has proudly served Utah businesses with comprehensive and custom-tailored insurance coverages for a decade. We pride ourselves on fostering long-term client relationships with a personalized and hands-on approach and have established a reputation built on quality and transparency. For more information about our products and services, we invite you to contact one of our reputable agents today at (855) 944-3457 or send us a message here.
