Wholesale Trade Insurance Needs

(Here's how you can easily find the right coverage)

Wholesale Trade

The wholesale trade industry is responsible for more than 5.7 million wage and salary jobs in the United States. These businesses are scattered around the country and generally engage in the sale and distribution of very specific types of merchandise.

According to federal statistics, nearly 90 percent of all wholesale trade businesses are small companies that employ 20 or fewer workers. Though small companies, these businesses work with large inventories and their potential for large financial losses is high. That is why a solid business insurance plan for the wholesale trade industry is so important.

Our independent insurance agent matching tool will find you the best insurance solution in your area. Tell us what you're looking for and we'll recommend the best agents for you. Any information you provide will only be sent to the agent you pick.

What Types of Businesses Fall Within the Wholesale Trade Sector?

The NAICS (or National American Industry Classification System) originated in the 1930’s. It is a system that is used to classify all U.S. business into a variety of industry sectors and subsectors and its coding enables economists to collect, analyze and report on financial data from all different industries. 

Currently, the NAICS lists 799,953 U.S. businesses as falling into the wholesale trade sector.

The wholesale trade sector includes businesses that deal primarily with the intermediate step in the distribution of products and merchandise. 

Production companies pass their products on in bulk to merchant wholesalers who then distribute these products on to retail trade outlets. The wholesale trade industry includes, but is not limited to, the following business types:

  • Automotive merchant wholesalers, including those that sell
    • Automobiles and other motor vehicles
    • Motor vehicle supplies
    • Motor vehicle parts, both new and used
    • Tires and tubes
  • Furniture and home furnishings merchant wholesalers
  • Construction materials merchant wholesalers, including those that sell
    • Lumber, plywood, millwork, and wood panels
    • Brick, stone and related construction material
    • Roofing, siding and insulation materials
  • Photographic equipment and supplies merchant wholesalers
  • Office equipment merchant wholesalers
  • Computer, computer equipment and software merchant wholesalers
  • Medical, dental and hospital equipment merchant wholesalers
  • Coal, mineral and ore merchant wholesalers
  • Household appliances, housewares and consumer electronics merchant wholesalers
  • Hardware merchant wholesalers
  • Plumbing, heating and air conditioning equipment and supplies merchant wholesalers
  • Machinery wholesalers, including those that sell
    • Farm and garden machinery
    • Construction and mining machinery
    • Industrial machinery
  • Sporting, recreational, toy and hobby goods and supplies merchant wholesalers
  • Clothing, footwear and accessories merchant wholesalers
  • Foodstuffs merchant wholesalers, including those that sell:
    • Packaged foods
    • Dairy products
    • Meat and poultry products
    • Fish and seafood
    • Confectionery items
    • Fruits and vegetables
  • Beer, wine and liquor merchant wholesalers
  • Tobacco and tobacco product merchant wholesalers
  • Business-to-business electronic markets
  • Wholesale trade agents and brokers

Insurance for Wholesale Trade Businesses Comes with Many Options

When you run a wholesale trade business, you face several inherent risks that can threaten the financial bottom line of your business. The merchandise you buy and sell can be lost or damaged while in transport or storage and, in the event of a major disaster, this can be quite costly. 

It is therefore imperative that you protect your investment with a suitable business insurance policy that is designed precisely for the wholesale trade industry.

Some industry specific coverage options you may want to give consideration to include:

  • Commercial property insurance: This is designed to cover your business-owned property, including goods and merchandise that is being stored prior to distribution in the event that it is lost or damaged due to a covered event.
  • Cargo and transit insurance: This is designed to cover the merchandise you buy and sell as it is being transported from one location to another, whether by air, land or sea. This can be used to compliment a commercial product insurance policy or can be purchased on its own.
  • Product recall and product liability insurance: As a link in the product distribution chain, you hold partial responsibility in the event that goods you are selling are faulty and cause sickness or injuries to others. It is important to be covered against potential liability claims and to protect your finances in the event of a product recall.

These are just a few of the many coverage options that are available to you with this type of business insurance plan. Before you purchase a policy, it is important that you consider all of your business’s potential hazards so that you can be sure to purchase all the coverage you need.


Save on Business Insurance

Our independent agents shop around to find you the best coverage.

Build a Wholesale Trade Insurance Policy Suitable For Your Business Needs

When you are shopping for a business insurance policy for your wholesale trade business, you will be offered many different policy options. Without the assistance of a qualified insurance professional, it can be difficult to navigate through the many coverage types and decide which are right for your particular business. 

Fortunately, business owners can turn to independent agents in our network for help meeting all their different insurance needs.

Because these agents are not captive to one particular insurance company, they have the freedom to help you shop around for policies and rates that are right for you. They can also answer your insurance-related questions, help you assess your coverage needs, and even assist you throughout the claims process. 

Contact an independent agent near your wholesale trade business today to learn more about this very important business coverage.

Share this page on Twitter Share this page on Facebook Share this page on LinkedIn