Looking for Wholesalers & Distributors Insurance?
Protect your distribution business from product liability, warehouse losses, delivery accidents, and contract-driven insurance requirements. Get coverage for wholesalers, distributors, and supply chain operators.
What is Wholesalers & Distributors Insurance?
Wholesalers and distributors' insurance protects businesses that store, handle, and move goods from claims and losses tied to products, premises, and transportation. Coverage commonly includes general liability, product liability, property/warehouse coverage, and commercial auto. Many customers and vendors require specific limits, additional insured status, and certificates before you can ship or sign supply agreements. The right setup depends on what you distribute, how you store it, and whether you deliver with your own fleet.
General & Product Liability
Covers third-party injuries, property damage, and product-related claims tied to goods you distribute.
Warehouse & Inventory Protection
Covers buildings (if owned), tenant improvements, inventory, and equipment like racking and forklifts.
Commercial Auto & Delivery Liability
Covers owned delivery vehicles and liability tied to shipping and deliveries.
Certificates
Fast proof for customer onboarding, vendor agreements, and landlord requirements.
Who Needs Wholesalers & Distributors Insurance?
- Wholesalers and distributors : Businesses requiring specialized insurance coverage
- Regional supply houses : Businesses requiring specialized insurance coverage
- Importers/distribution arms : Businesses requiring specialized insurance coverage
- Fulfillment and light logistics operations : Businesses requiring specialized insurance coverage
Frequently Asked Questions
What insurance do wholesalers and distributors need?
Most need general liability and product liability, plus property coverage for inventory, equipment, and warehouse contents. If you deliver, you’ll likely need commercial auto and possibly hired/non-owned auto depending on how drivers and vehicles are structured. Many also carry umbrella/excess liability because product claims can quickly exceed standard limits. Cyber coverage can matter if you process orders, store customer data, or integrate with client systems.
Is wholesalers and distributors insurance required?
It’s often required contractually—customers, vendors, and landlords typically require insurance before onboarding or signing agreements. Some industries also face regulatory requirements (especially for controlled or specialized goods). Even when not mandated, product liability and inventory exposure can create losses large enough to threaten the business. Certificates and endorsements are frequently non-negotiable in distribution contracts.
How much does wholesalers' and distributors' insurance cost?
Smaller distributors may pay $3,000–$10,000 annually, while larger operations with warehouses, higher inventory values, and fleet exposure can be $15,000–$100,000+. Costs depend on product type, revenue, payroll, inventory values, safety programs, and claims history. Delivery operations and higher limits increase premiums. Warehousing of high-theft or high-hazard goods can also raise costs.
Does insurance cover product recalls or defective products?
Standard product liability covers injury or property damage caused by a defective product, but it typically doesn’t cover the cost to recall or replace the product itself. Product recall coverage is a separate policy/endorsement that can help with recall expenses and certain business interruption impacts. Coverage terms depend heavily on product type and controls like traceability and quality procedures. If recall exposure is realistic, it’s worth structuring specifically.
Does insurance cover inventory loss in the warehouse?
Property coverage can protect inventory from covered perils like fire, certain water damage, and theft (depending on the policy). Some losses—like spoilage, flood, or certain types of theft—may require special endorsements. Accurately valuing inventory and confirming limits is critical, especially for peak seasons. Good security and documented inventory controls also help with claims handling.
Can I add customers or landlords as additional insureds?
Yes, this is extremely common in distribution contracts and leases. Customers may request additional insured status on liability, and landlords often require it as part of a warehouse lease. Some partners also request a waiver of subrogation or primary/non-contributory wording. We can issue COIs quickly and align endorsements to the exact contract language.