Wholesalers in the Greater Toronto area face a wide range of challenges and risk factors in business. In fact, depending on your transportation, logistics, workers, and equipment you use, you could face risks unique to your company. It is very important to have the right wholesalers insurance coverage in order to fully protect your business and your financial future. You never know when a disaster will come knocking on your door, and here is an example.
Several years ago, David S saw the need for more grocery distribution services. He started a company that specialized in perishable items like produce and frozen foods and David had a flair for business. In the beginning he had one warehouse, two trucks, and a crew or four workers. As his business grew, he eventually bought an entire fleet of trucks and hired an additional 18 employees. David’s company delivered to more than 40 customers in the GTA.
Last year, during the Canada Day holiday, it was very hot and humid, and a large storm developed over Ontario. The rains came down in torrents for several hours and this caused a large flash flood that completely enveloped David’s warehouse (which was full of frozen foods at the time).
Not only was there significant flood damage, but the power was off for many hours also. Needless to say, the loss to David’s business was significant. David suffered flood losses, spoilage, and business interruption losses for many thousands of dollars. Fortunately, just two weeks before, he went to his insurance agent for an annual review and the agent recommended adding flood coverage to his distributors insurance policy. David didn’t want to pay out additional money, but his agent convinced him it was in his best interests. If not for this decision, he could have faced major losses. Fortunately, his policy covered all the losses and kept him in business.
If you are a product middleman, you have specific insurance requirements. You need to protect all your risk factors, including those of your property, products, workers, equipment, and vehicles. This insurance is designed to fill those needs.
Insurance for wholesalers is for any company distributing products to customers for resale. It doesn’t matter if you only have a small warehouse with one truck or you service all of Canada. You need this coverage.
