Non-Durable Goods Wholesalers

All business-owners have exposures which can usually be covered by purchasing the right kind of insurance policy; however, understanding these exposures is a very important part of the process. Let’s take a minute to discuss… 

1. Property Insurance coverage provides financial protection from exposures such as flammable fuels, paints, lubricants, oils, degreasers, and solvents used in the repair operations. Most insurance companies require everything to be properly labeled, separated, and stored away from combustibles. If any spray painting is done in spray booths, then it should have good ventilation, UL-approved wiring and fixtures, and adequate controls. Welding sometimes happens during the repair and body work operations which needs to be evaluated for proper handling of the tanks and gases. If any welding is done, then it should be performed away from the other operations with either a separate room or flash/welding curtains. Smoking should be prohibited. Not keeping a clean and orderly work environment is a serious fire hazard and not desired by underwriters. Without storing and/or disposing properly, oily rags can unexpectedly ignite which could cause a fire. Keeping work areas cleaned regularly, and trash removed from the building is something underwriters with these insurance companies look at closely. Vehicles and auto parts are target items for thieves, which is why it is very important to have plenty of security controls in place! Recommended solutions include physical barriers such as chains, fences, or gates, lighting to deter access to the premises after hours, and an alarm system that reports directly to a central station or the police department.
2. Business Income and Extra Expense Insurance coverage provides financial protection to your bottom line when disaster hits and keep in mind that exposures are high as substitute facilities may not be readily available.
3. Inland Marine Insurance coverage could provide protection from exposures in accounts receivable if the dealership offers credit, computers used to monitor inventory, floor plan coverage for vehicles furnished by manufacturers and held for sale, goods in transit, signs, and valuable papers and records for manufacturers', parts suppliers', and customers' information. It is wise to always have backup copies of all records, including computer records, which should be completed and stored off the premises. Always remember vehicles stored in open lots are mainly vulnerable to harm by hail, wind, flood, vandalism, and theft. As always, it is smart to make sure that these lots are well lit with chains, fences, or gates. Showroom floors should be reserved to host the more expensive models. Also having an alarm system that directly connects to a central station or the police department is a wise investment, but some carriers will advise of having security guards for particular areas.