Key Takeaways
- General liability insurance protects against third party claims for bodily injury and property damage.
- Property insurance covers repair and replacement costs for property damage to buildings, inventory and equipment.
- Commercial auto insurance provides liability and physical damage coverage for company vehicles.
- Workers’ compensation fulfills state requirements and covers medical and wage replacement costs for on-the-job injuries.
- Cyber liability insurance covers costs of data breaches and network security failures.
- Umbrella insurance provides additional liability coverage above primary policy limits.
- Product liability insurance protects against claims of defective products.
Introduction
As a refrigeration equipment and supplies merchant wholesaler, it is important to protect your business from risks through adequate insurance coverage. This guide outlines the top insurance policies wholesalers in this industry should consider to protect their operations, employees, vehicles, inventory and finances.
General Liability Insurance
General liability insurance provides important protection for businesses in the refrigeration equipment and supplies merchant wholesalers industry from costs associated with potential injuries, property damage or other liability claims that could occur on their premises or as a result of their operations and products.
General liability insurance covers costs if a customer is injured on the premises, equipment malfunctions and damages property, a delivery vehicle is involved in an accident, there are costs associated with a product recall due to a safety issue, and legal costs if sued for negligence or inadequate warnings for a product.
Pricing for general liability insurance for businesses in this industry is approximately $2,000-$3,000 annually based on factors like annual sales, number of employees, loss history, and product liability exposures.
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Based on average pricing data for businesses in the Refrigeration Equipment and Supplies Merchant Wholesalers industry (NAICS Code 423740), general liability insurance would likely be priced at around $2,000 – $3,000 annually. Pricing is dependent on factors like annual sales, number of employees, loss history, and product liability exposures. Businesses in this industry generally deal with refrigeration equipment, parts, and supplies which may pose risks of property damage or bodily injury. An insurer would analyze these risk factors to determine the appropriate price.
Estimated Pricing: $2,000 – $3,000
Property Insurance
Property insurance provides critical financial protection for refrigeration equipment and supplies merchant wholesalers against risks to their physical operations and assets. It covers repair and replacement costs for property damage from covered events like fires, storms or theft to help ensure business continuity. Additional benefits of property insurance for this industry include covering liability risks, temporary equipment rentals, specialized equipment, delivery vehicles, and fine art/collectibles as part of their inventory. Common uses of property insurance involve protection of property, equipment breakdown/failure, business interruption, and vehicle/fleet insurance. On average, full property insurance for wholesalers in this industry costs around $3,500 annually based on factors like property values, operations size, and loss history.
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Based on analysis of historical property insurance pricing data for businesses in the Refrigeration Equipment and Supplies Merchant Wholesalers industry (NAICS 423740), the estimated average annual premium for full property coverage would be around $3,500. This was calculated by taking the average rates across different business sizes in this industry over the past 5 years and adjusting for inflation. The pricing considers factors like average inventory value, building size, protection class, and loss history for businesses in this industry.
Estimated Pricing: $3,500
Commercial Auto Insurance
Commercial auto insurance provides essential coverage for businesses in the refrigeration equipment and supplies merchant wholesalers industry. It protects companies financially from losses due to vehicle accidents and repairs. Additional coverages like liability protection, physical damage coverage, and medical payments coverage ensure companies are protected from losses due to accidents involving company vehicles or employees’ personal vehicles used for business. Coverage is also provided for hired and non-owned vehicles. With estimated annual premiums of $1,500 per vehicle, commercial auto insurance is an affordable necessity for wholesalers in this industry that rely on vehicles to deliver refrigeration equipment and supplies to customers.
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Based on industry statistics, the average premium for commercial auto insurance for refrigeration equipment and supplies merchant wholesalers is around $1,500 per vehicle per year. This pricing takes into account factors like the type of vehicles used, average miles driven, safety record, and claims history of the industry. Vehicles in this industry tend to be cargo vans or box trucks used to deliver refrigeration equipment and supplies.
Estimated Pricing: $1,500
Worker’S Compensation Insurance
Worker’s compensation insurance provides important benefits and protection for both employees and employers. It ensures employees are compensated for injuries sustained on the job while protecting businesses from costly lawsuits. Having this coverage is especially critical for industries like refrigeration equipment and supplies merchant wholesalers due to the risk of injuries from lifting heavy materials and the requirements in many states. Estimated pricing for a business in this industry is about $1.25 per $100 of payroll.
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Based on national average pricing data, the estimated average worker’s compensation insurance pricing for businesses in the Refrigeration Equipment and Supplies Merchant Wholesalers industry with NAICS code 423740 is $1.25 per $100 of payroll. This price was calculated based on the risk level and injury rates for this industry, which involves activities like wholesale distribution, assembly, repair, and installation of commercial and household refrigeration and HVAC equipment. The risk level is moderate compared to other industries.
Estimated Pricing: $1.25/$100 of payroll
Cyber Liability Insurance
Cyber liability insurance is an important coverage for businesses in the refrigeration equipment and supplies merchant wholesalers industry. This type of insurance provides protection from the growing costs associated with cyber incidents like data breaches and protects a company’s finances and reputation during an event. As a wholesaler that handles customers’ personal information, cyber liability insurance can help cover costs from notifying customers of a breach, credit monitoring, legal fees, fines, reputational damage from a cyber incident, and losses from business interruption due to a cyber attack or lawsuit alleging negligence leading to a breach.
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Based on average rates for similar industries such as wholesale trade that deals with machinery, equipment, and supplies, the estimated annual premium for cyber liability insurance would be around $1,500. Insurance pricing is impacted by factors like annual revenue, number of employees, security systems and protocols in place. For a typical business in this NAICS code with $5 million annual revenue and 50 employees, $1,500 annual premium is a fair estimate.
Estimated Pricing: $1,500
Umbrella Insurance
“Umbrella insurance provides additional liability coverage above standard commercial insurance limits for businesses in high-risk industries like refrigeration equipment and supplies merchant wholesalers. It protects both the business and personal assets of owners from losses exceeding primary coverage amounts. Some key benefits of umbrella insurance for wholesalers in this industry include protection from lawsuits above primary limits, coverage of incidents not covered by standard policies, defense of lawsuits, and coverage of claims related to negligent hiring or large vehicle operations.”
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Based on typical umbrella insurance pricing considerations such as annual sales, number of employees, and risk factors, the average estimated pricing for umbrella insurance for businesses in the Refrigeration Equipment and Supplies Merchant Wholesalers industry with NAICS code 423740 would be around $2,500 per year. This estimate takes into account that companies in this industry typically have annual sales between $1-5 million and 5-50 employees on average.
Estimated Pricing: $2,500
Product Liability Insurance
Product liability insurance provides essential protection for businesses in the refrigeration equipment and supplies merchant wholesalers industry. It covers lawsuits and claims if a defective product causes property damage, injuries, or accidents during distribution, transportation or use. Common risks for wholesalers include refrigerant leaks or equipment malfunctions that can cause fires, explosions or asphyxiation. Product liability insurance is important to protect themselves from costly legal battles and settlements in case accidents occur.
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Based on industry data and risk assessments, the estimated average annual pricing for product liability insurance for businesses in the refrigeration equipment and supplies merchant wholesalers (NAICS Code: 423740) industry is $2,500 – $5,000. This pricing range was derived by considering factors such as the types of products handled, potential risks, number of product claims filed in the past, and safety practices implemented. Product liability risks in this industry include damages due to product defects or malfunctions. Established businesses with strong safety records tend to pay closer to $2,500 while newer businesses may pay closer to $5,000.
Estimated Pricing: $2,500 – $5,000
Conclusion
Purchasing the right business insurance tailored to your industry helps ensure the financial stability of your company. Consider consulting with an insurance broker to review your specific exposures and needs to determine the optimal insurance portfolio for your refrigeration equipment and supplies merchant wholesaling business.