Toys Wholesaler Distributor Insurance - Cost & Coverage (2021)
Toys Wholesaler Distributor Insurance
Toys Wholesaler Distributor Insurance Policy Information
Toys Wholesaler Distributor Insurance. Dolls, action figures, puzzles, electronics, blocks, cars; there are so many different types of toys, and as a distributor or wholesaler of these products, there's no doubt that you handle a large assortment of toys. It's also likely that you work with various clients, such as large scale chain business, small local establishments, and individual consumers, too.
Toy distributors receive plastic, metal, wood and fabric toy from foreign or domestic manufacturers for distribution to toy stores, department stores, discount stores and other retail establishments. The distribution center may be open 24 hours a day. Generally, the products are delivered to the customer on the distributor's vehicles.
Your goal is to make sure that the needs of your clients are met. In order to do that, it's important that all aspects of your business are properly handled. Orders need to be properly filled and distributed; inventory needs to be re-ordered and stored, any tools or equipment you use has to be maintained, your employees have to be properly trained, and your facilities need to be up-to-code to ensure a safe work environment.
Though you try your best to make sure that everything is properly handled, you never know when a mishap is going to occur. Things like property damages, personal injuries, equipment malfunctions, and legal disputes can arise.
When they do, you can end up incurring a tremendous amount of expenses that you may not be able to cover. One of the best things you can do to ensure the success of your business is to plan for the unexpected; and investing in toys wholesaler distributor insurance is one of the best ways you can do that.
Toys wholesaler distributor insurance protects your business from lawsuits with rates as low as $47/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked toys wholesaler & distributor insurance questions:
How Much Does Toys Wholesaler Distributor Insurance Cost?
Why Do Toys Wholesalers And Distributors Need Insurance?
What Type Of Insurance Do Toys Wholesalers And Distributors Need?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small toys wholesaler distributor businesses ranges from $47 to $79 per month based on location, size, revenue, claims history and more.
When the unexpected does happen, toy distributors and wholesalers can rely on their insurance to provide them with the financial protection they need. Liability expenses can be excessive; in fact, they can be financially crippling.
If something does go awry and you are financially responsible, you can have peace of mind knowing that those expenses will be covered by your insurance carrier.
Toys wholesaler and distributor insurance lets toy wholesalers recover from common risks quickly. Additionally, being properly insured assures that business owners in this industry are operating within compliance with the law, as many types of coverage are mandated.
Furthermore, being fully insured can help to enhance the success of a toy distributor's business because it provides anyone they work with peace of mind knowing that they if anything does go wrong, they will be able to cover the damages.
From commercial property to product liability, there are various types of insurance coverage that toy distributors and wholesalers should have in order to fully protect their businesses.
While every organization is different and the needs of each organization will determine what type of toys wholesaler and distributor insurance coverage a business owner should carry, certain policies are essential for all toy wholesalers.
Examples of some of the forms of toy distributors insurance coverage you need to carry and should consider investing in include:
These are just some of the types of toys wholesaler distributor insurance coverage you should carry. You can carry individual policies, or opt for a commercial package policy that combines several different types of coverage under a single policy.
Toys Wholesale Distributor's Risks & Exposures
Premises liability exposure is limited due to lack of public access to the storage facilities. If customers pick up goods, loading docks must be clearly marked and user-friendly. Customers should be confined to specific areas that are kept clean, dry and free of obstacles. Contracts with transportation and storage providers may expose the operation to additional liability. Railroad sidetrack agreements pose additional concerns.
Products exposure is low if products are all from domestic manufacturers. The exposure increases if items are from foreign manufacturers as these are products intended for use by infants and children. All products must be clearly labeled with the age group and all must have passed federal standards for child safety.
Shelving must be stable to prevent stored goods from falling onto workers. Floor coverings or coatings in the warehouse may pose slip and fall hazards. Housekeeping is critical.
Property exposure comes from multiple ignition sources, open construction, and the combustibility of many types of toys and their packaging materials. Ignition sources include electrical wiring and equipment. All wiring must be well maintained and up to code for the occupancy.
If there are any stocks of flammables, those should be kept well away from combustibles, preferably in a UL approved cabinet.
Good housekeeping and fire controls are critical. All stock should be racked and stored with adequate aisle space and limited stockpiling to prevent a fire from spreading. Smoking should be prohibited. If there is a sprinkler system, heads must be located high enough to avoid accidental contact with forklifts. Recharging of forklifts and maintenance of vehicles should be done in a separate, ventilated area away from combustibles.
Values increase substantially during peak seasons. Theft is a major concern for "hot items." Alarms, guards, fencing and other security precautions must be in place as appropriate to the location.
Regular audits, both internal and external, are important in order to prevent employee theft of accounts. Employee theft can be a problem for "hot" seasonal toy items. Appropriate security procedures should be in place. Physical inventories should be conducted at least annually.
Inland marine exposures come from accounts receivable if the distributor offers credit to customers, computers for tracking inventory, contractors' equipment, goods in transit, and valuable papers and records for manufacturers' and customers' records.
Duplicates must be kept of all data to permit easy replication in the event of a loss. Contractors' equipment includes forklifts, cherry pickers, and hand trucks used for moving stored items.
While goods may come to the warehouse via contract or common carriers or trains, goods are generally delivered to retailers on trucks owned by the distributor. Goods in transit are subject to loss from collision or overturn. Due to the potential for theft, vehicles should be unmarked, have alarms, and be attended at all times.
Commercial auto exposure comes from the salespersons' fleet and delivery vehicles. There should be written policies on personal and permissive use of any vehicles provided to employees. All drivers must be well trained and have valid licenses for the type of vehicle being driven.
MVRs must be run on a regular basis. Random drug and alcohol testing should be conducted. Vehicles must be well maintained with records kept in a central location.
SIC CODE: 5092 Toy And Hobby Goods And Supplies
NAICS CODE: 423920 Toy and Hobby Goods and Supplies Merchant Wholesalers
Description for 5092: Toy And Hobby Goods And Supplies
Division F: Wholesale Trade | Major Group 50: Wholesale Trade-durable Goods | Industry Group 509: Miscellaneous Durable Goods
5092 Toy And Hobby Goods And Supplies: Establishments primarily engaged in the wholesale distribution of games, toys, hobby goods and supplies, and related goods, such as fireworks and playing cards.
Craft kits-wholesale
Fireworks-wholesale
Games (including electronic), except coin-operated-wholesale
Hobby kits-wholesale
Model kits-wholesale
Playing cards-wholesale
Stamps, philatelist-wholesale
Toys (including electronic)-wholesale
Vehicles, children's-wholesale
Toys Wholesaler Distributor Insurance - The Bottom Line
Not all toys wholesaler distributor insurance polices are designed in the same manner. If you are shopping for commercial insurance, or want to see if you have the best coverage, speak to an experienced agent to take a look at your business.