You keep goods moving—don’t let risk slow you down.
Protect your operation at every stage with wholesaler and distributor insurance.
If you’re in the wholesale or distribution business, you already understand the complexity of managing inventory, navigating logistics, and meeting tight deadlines. But have you ever stopped to think about whether your insurance is keeping up with that complexity?
There’s no such thing as a single “wholesaler and distributor insurance” policy. But there are a combination of policies designed to cover the unique risks your business faces every day.
Many business owners assume that because they have a general liability policy, they’re good to go. But the truth is, no one policy can cover everything. From property damage to employee injuries to goods lost in transit, your risk exposure can span far beyond what a basic plan covers.
That’s why it’s so important to build an insurance strategy that actually reflects how your business operates.
What Does Wholesaler and Distributor Insurance Cover?
Here’s a deeper look at the essential policies wholesalers and distributors should consider—and how each one helps you stay protected.
1. General Liability Insurance
Warehouses, shipping docks, and storage facilities are high-traffic, high-risk environments. If a vendor, customer, or delivery driver is injured on your premises—or if your team accidentally damages someone else’s property—you could be facing a costly lawsuit.
This is the foundation of most business insurance packages—and for good reason. General liability insurance helps cover legal fees, medical expenses, and settlements.
2. Commercial Property Insurance
A fire, storm, or theft could wipe out thousands (or even millions) of dollars in equipment, shelving, and inventory. Without proper coverage, recovering from a disaster like this could put your entire business at risk.
Commercial property insurance protects your physical assets—like your building, machinery, stock, and materials—so you can rebuild and reopen with confidence.
3. Equipment Breakdown Coverage
Many wholesale and distribution businesses rely on refrigeration units, conveyors, forklifts, or packaging machines to keep things running. If a critical piece of equipment suddenly fails, you could be facing costly repairs and major delays.
Equipment breakdown coverage pays to repair or replace damaged machinery due to mechanical failure, power surges, or operator error—and may also help cover resulting income loss.
4. Business Interruption Insurance
What happens if a fire, storm, or other covered event forces you to shut down operations temporarily? Lost income can pile up fast, even if your property is insured.
Business interruption insurance helps replace lost revenue and covers ongoing expenses—like payroll and rent—while you recover.
5. Product Liability Insurance
Even if you didn’t manufacture the goods you distribute, you could still be named in a lawsuit if a product causes harm or property damage. In today’s legal environment, everyone in the supply chain is a potential target.
Product liability insurance helps cover the cost of legal defense, settlements, and damage awards if a product you sell ends up causing injury or loss.
6. Commercial Auto Insurance
If your business owns or operates vehicles, you face constant risk on the road. Accidents, property damage, or injuries can lead to serious financial consequences.
Commercial auto insurance helps cover repair costs, medical bills, and liability if your vehicles—or your drivers—are involved in a crash.
7. Inland Marine Insurance
Standard property insurance often doesn’t cover goods once they leave your warehouse. That’s a major problem for wholesalers and distributors who rely on frequent transportation.
Inland marine insurance protects cargo, tools, and equipment while they’re in transit or stored off-site.
8. Workers’ Compensation Insurance
Your team keeps things moving, but warehouse work, loading docks, and driving come with injury risks. If an employee gets hurt on the job, you could be responsible for their medical bills and lost wages.
Workers’ compensation insurance helps protect both your employees and your business by covering medical expenses, disability benefits, and legal costs related to workplace injuries.
9. Employment Practices Liability Insurance (EPLI)
Whether you have five employees or fifty, employment-related lawsuits are more common than many business owners realize. Claims of wrongful termination, discrimination, or harassment can be costly—even if you’ve done nothing wrong.
EPLI helps cover legal fees, settlements, and court costs if a current or former employee sues your business over issues like hiring practices, workplace conduct, or retaliation.
10. Cyber Liability Insurance
From order tracking to inventory systems, much of your business runs on digital tools. If your network is hacked or customer/vendor data is exposed, the fallout can be expensive and reputationally damaging.
Cyber liability insurance helps cover the cost of data recovery, legal fees, notification requirements, and even ransom payments in the event of a cyberattack.
11. Umbrella Insurance
Even if you carry solid liability coverage, a major lawsuit could exceed your policy limits—especially in injury or product-related claims.
Commercial umbrella insurance provides an extra layer of liability protection on top of your other policies, helping to cover large claims that would otherwise come out of your pocket.
12. And even more depending upon your operations!
Nearly a dozen different coverage types may seem like a lot, but there’s a ton of risk out there and every business operation is different! What we’ve illustrated here is not meant to be a comprehensive or exhaustive list, but it should give you a pretty clear starting picture.
When Should You Review Your Coverage?
Insurance isn’t something you “set and forget.” Your business evolves—and so do your risks. You should review your policies at least once a year, and especially when:
- You expand your operations
- Add new vehicles, staff, or services
- Move to a new location
- Sign a major new contract
- It’s just been a while since you’ve looked at things with your Independent Agent
A regular review ensures your coverage still matches your needs—before a gap becomes a costly surprise.
What Does Wholesale and Distribution Insurance Cost?
Every business is different, which means insurance premiums can vary widely—even within the same industry. When it comes to wholesaler and distributor insurance, carriers look at a range of factors to determine how much you’ll pay.
Here’s what typically affects your costs:
1. Type of Goods You Handle
Distributing canned food is a lot different from shipping heavy machinery or flammable materials. Higher-risk products can mean higher premiums, especially if they pose a health, fire, or liability risk.
2. Size and Location of Your Facility
A large warehouse with millions in stored inventory requires more coverage than a smaller facility. Where you’re located also matters—areas prone to hurricanes, flooding, or theft may come with higher rates.
3. Number of Employees
More employees means a higher likelihood of workplace injuries, which affects your workers’ comp and liability premiums.
4. Vehicle Use and Fleet Size
The number of business-owned vehicles, how far and how often they travel, and the type of cargo they carry all factor into your commercial auto insurance rate.
5. Claims History
Past claims—especially if they’re frequent or costly—can raise red flags with insurers. A clean loss history often results in better rates.
6. Safety and Security Measures
Do you have security systems, fire suppression equipment, employee safety training, or inventory tracking in place? Strong risk management practices can reduce your exposure—and your premium.
7. Coverage Limits and Deductibles
Higher policy limits provide more protection but come with a higher price tag. Choosing a higher deductible can lower your premium, but it also means you’ll pay more out of pocket if you have a claim.
At the end of the day, your insurance cost reflects the level of risk your business presents—and the quality of protection you choose. It’s not just about getting a low rate; it’s about making sure that rate actually buys you the coverage you need.
How To Buy the Right Insurance For Your Business
You don’t need to be an insurance expert (that’s what we’re here for). What you do need is a partner who understands the risks of your industry and knows how to find coverage that actually works for your business.
That’s where an independent agency like Harry Levine Insurance makes all the difference.
Unlike captive agents who only represent one insurance company, independent agencies work with multiple carriers. That means we’re not locked into a single provider or limited by one company’s offerings. We can shop the market to find coverage that fits your business—both in protection and price.
What You Get With HLI
- Personalized Risk Assessment: We take the time to understand how your business operates—your property, your products, your people, and your processes.
- Coverage That Fits: We don’t believe in one-size-fits-all policies. We tailor your coverage to match your actual exposures—so you’re not paying for things you don’t need or missing things you do.
- Long-Term Support: As your business grows, your insurance needs will change. We’re here to help you review and update your coverage regularly—not just when you buy your first policy.
Bottom line? Buying the right insurance isn’t just about checking a box. It’s about building a real plan that protects what you’ve worked so hard to build.
Protect What You’ve Built
You’ve put time, energy, and resources into building a successful operation. But all it takes is one uncovered risk—a lawsuit, a fire, a breakdown—to throw everything off course.
Wholesaler and distributor insurance isn’t about buying every policy on the shelf. It’s about building a smart, strategic safety net tailored to the way your business actually runs.
At Harry Levine Insurance, we specialize in helping wholesalers and distributors understand their risks, identify gaps in their current coverage, and get the protection they actually need—not just what’s cheapest.
If it’s been a while since you reviewed your policy—or if you’re not sure what’s covered—we’d love to help. Contact us today to schedule a personalized coverage review or get a quote.
