Any time business is conducted at scale, there is an opportunity for great profit, but also for tremendous loss. Retailers and wholesalers face a unique set of risks as part of their daily operations. First and foremost is a loss of merchandise, whether due to theft or disaster. Next, there is the inability to obtain supply, which can effectively disrupt business. Retailers and wholesalers may also become involved in product liability claims, as they were part of either manufacturing or distribution. Finally, other legal action may be pursued against wholesalers for a number of reasons, from non-delivery of merchandise to regulatory compliance penalties.
There are other insurances that are likely to apply include:
- Cyber Insurance
- Crime Insurance (historically referred to as Fidelity Guarantee)
- Specific Terrorism Insurance
- Professional Indemnity Insurance
- Directors’ & Officers’ Liability Insurance
- Stock Throughput Insurance (as an option to cover joint marine transit and stock storage risks under the one insurance policy)
- Surety Insurance (to replace or support any bank guarantee needs)
- Credit Insurance (to cover a wholesaler’s credit risk as a supplier or key supplier credit risk)
- Political Risk Insurance (associated with importation from/trading with international markets)