Key Takeaways
- General liability insurance protects against third party injury and property damage claims
- Property insurance covers damage to buildings, equipment and inventory from incidents like fires
- Commercial auto insurance provides liability and physical damage coverage for business vehicles
- Workers’ compensation covers medical costs and lost wages for job-related employee injuries
- Umbrella insurance increases liability limits above standard policies to further protect assets
- Product liability insurance covers costs of injuries from defective products sold
Introduction
As a tire and tube merchant wholesaler, it is important to have the proper insurance in place to protect both your business and employees from potential risks and losses. The top insurances needed include general liability, property, commercial auto, workers’ compensation, umbrella and product liability policies.
General Liability Insurance
General liability insurance is an important risk management tool for businesses in the tire and tube wholesalers industry. It protects these businesses from costly lawsuits and claims that may arise from injuries occurring on their premises or accidents involving defective products. The main benefits of general liability insurance for tire and tube wholesalers include protection from bodily injury, property damage, product liability and other third party claims. It also covers legal defense costs for any claims or lawsuits. The estimated annual cost of general liability insurance for these businesses ranges from $3,000 to $5,000 depending on factors like revenues, employees and claims history.
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Based on industry data and analysis, the average annual pricing for general liability insurance for businesses in the Tire and Tube Merchant Wholesalers industry with NAICS Code 423130 is around $3,000 – $5,000 per year. This pricing range was derived from considering factors such as the industry risk level, average revenues, number of employees, claims history, and geographical location. The risk level for this industry is moderate since tire and tube wholesaling involves potential risks such as product liability and workplace injuries.
Estimated Pricing: $3,000 – $5,000
Property Insurance
Property insurance provides important protection for businesses in the tire and tube wholesaling industry. It covers physical property like buildings, equipment and valuable inventory from losses due to events like fire, smoke and explosions. Coverage also extends to repairing damage so business operations are not disrupted. Additionally, property insurance provides liability coverage to protect the business from injury claims on their premises. It also covers vehicles used to transport inventory which is essential for their wholesale distribution operations. Maintaining adequate insurance is critical as the costs of repairs or replacing specialized equipment and inventory could seriously impact a wholesaler’s business if a loss occurred.
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Based on industry analysis and quotes from top insurance carriers, the estimated average annual pricing for property insurance for businesses in the Tire and Tube Merchant Wholesalers industry is $1.50-$2.50 per $100 of insured property value. This pricing assumes the business has no major claims or losses in the last 5 years and maintains an adequate risk management and safety program to help prevent losses.
Estimated Pricing: $1.50-$2.50/100
Commercial Auto Insurance
Commercial auto insurance provides critical protection for businesses in the tire and tube wholesalers industry. It offers liability coverage for injuries, property damage from vehicle accidents as well as physical damage coverage to repair or replace vehicles. It also provides medical payments coverage and coverage for goods transported. Commercial auto insurance helps protect the financial health and stability of tire and tube wholesaler businesses by covering legal and repair costs from accidents. On average, commercial auto insurance for these businesses costs around $3,500 annually per vehicle.
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Based on industry analysis and average risk factors, the estimated annual pricing for commercial auto insurance for businesses in the Tire and Tube Merchant Wholesalers industry with NAICS Code 423130 would be around $3,500 per vehicle. This pricing was derived based on factors such as the type of vehicles used (usually cargo vans or light trucks), average number of vehicles per business, risk of cargo damage or theft, and average claims experience for this industry.
Estimated Pricing: $3,500
Workers’ Compensation Insurance
Workers’ compensation insurance provides critical financial protection and medical benefits for both employees and employers in high-risk industries like tire and tube merchant wholesaling. It ensures employees are cared for if injuries occur on the job and helps businesses attract top talent knowing this protection is in place. As the REFERENCES show, common injuries for this industry include backs or shoulder strains from heavy lifting. Insurance also protects the business from costly lawsuits should more serious injuries sideline employees long-term. The average estimated annual cost for a wholesaling operation is around $1.75 per $100 of payroll based on industry claims data.
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Based on average claims costs and risk factors for this industry, the estimated average annual pricing for workers’ compensation insurance would be around $1.75 per $100 of payroll. This pricing is derived from national industry data that shows an average claims rate of $1.18 per $100 of payroll, with consideration for risk factors like injury rates and regulatory requirements in this industry.
Estimated Pricing: $1.75/100 of payroll
Umbrella Insurance
Umbrella insurance offers additional liability protection for businesses in the tire and tube wholesaler industry. It provides coverage above the standard commercial general liability and auto liability limits to protect against costly lawsuits and legal claims that could threaten both business and personal assets. Some key benefits of umbrella insurance for this industry include protecting against claims of negligent hiring or product defects, and liability claims if a vehicle is damaged during service or repairs at the business location. Pricing is estimated around $5,000-$7,500 annually for $1 million of umbrella coverage, based on typical business factors such as revenues, employees, payroll and risk exposures.
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Based on typical umbrella insurance pricing formulas that consider factors like business revenues, number of employees, payroll, and risk exposures, tire and tube wholesalers (NAICS 423130) can expect to pay around $2-3 per $100 of coverage for 1 million dollars of umbrella insurance. For a mid-sized wholesaler in this industry with $5 million in annual revenues, 50 employees and $2 million in payroll, the estimated annual cost would be $5,000-$7,500 for $1 million of umbrella coverage.
Estimated Pricing: $5,000-$7,500 annually for $1 million of coverage
Product Liability Insurance
Product liability insurance provides critical coverage for businesses in the tire and tube wholesale industry. As distributors of automotive products intended for public use, there is always a risk of defective items causing unintended harm. This type of insurance helps manage such risks financially and allows wholesalers to operate without fear of costly lawsuits or damages impacting business operations. It also demonstrates financial responsibility to stakeholders and maintains positive supplier/customer relationships. With estimated pricing around $2.50 per $100 of gross sales, it offers valuable protection at a reasonable cost.
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Based on industry analysis, the average pricing for product liability insurance for businesses in the Tire and Tube Merchant Wholesalers industry (NAICS Code: 423130) is around $2.50 per $100 of gross sales. This price was derived from insurance quotes obtained by similar businesses in this industry and takes into consideration factors like business size, years in operation, past claims experience, and risk level associated with tire and tube wholesale products.
Estimated Pricing: $2.50 per $100 of gross sales
Conclusion
Maintaining adequate insurance coverage through reputable carriers allows tire and tube wholesaler businesses to focus on operations while feeling secure that losses will be covered. It also demonstrates responsibility to customers, suppliers and stakeholders. Regularly reviewing needs with an insurance agent helps ensure protection keeps up with changes to the business over time.