Top Business Insurances for Automotive and Motor Vehicle Merchant Wholesalers (NAICS 423110) to Protect Your Company

Key Takeaways

Consider commercial general liability insurance to protect against third party claims of bodily injury and property damage
Evaluate commercial property insurance to cover costs of property damage to buildings and inventory
Review commercial auto insurance to insure vehicles used for transportation and protect against liability claims
Make sure to carry workers’ compensation insurance to cover medical expenses and lost wages of injured employees as required by law
Look into commercial umbrella insurance for additional liability protection above primary policies
Assess commercial cyber liability insurance to cover costs of a data breach or network security incident

Introduction

As an automotive and motor vehicle merchant wholesaler, it is important to protect your business from unexpected financial losses and liability claims through insurance. The top insurances to consider include commercial general liability, property, auto, workers’ compensation, umbrella and cyber liability policies.

Commercial General Liability Insurance

This reference provides an overview of commercial general liability insurance for businesses in the automotive and motor vehicle merchant wholesalers industry. It outlines the top benefits, use cases, and estimated pricing for this important type of insurance coverage. The benefits section details the key protections this insurance provides including defense against lawsuits, premises and operations coverage, and products liability coverage. The use cases section gives examples of common situations this insurance would apply to for wholesalers like vehicle damage during transportation. The pricing section estimates the average annual cost would be $5,000 based on typical industry factors.

Category	List
Benefits	Protection against third-party claims of bodily injury or property damage Defense against lawsuits from customers, clients, or third parties Coverage for on-premises and off-premises exposures Protection for premises and operations Coverage for products and completed operations Advertising injury and personal injury protection
Use Cases	Bodily injury or death to customers and visitors on merchant’s premises Property damage to vehicles and parts during transportation and storage Errors and omissions from incorrect product information provided to customers Cross-liability for subcontractors working on merchant’s premises

Based on typical pricing factors like number of employees, annual sales revenue, property values, prior claims etc. and comparing to industry benchmarks, the estimated average annual pricing for Commercial General Liability Insurance for businesses in the Automobile and Other Motor Vehicle Merchant Wholesalers industry with NAICS Code 423110 would be around $5,000. This pricing is calculated assuming an average size business in the industry with 10-50 employees and $5-10 million in annual sales revenue.

Estimated Pricing: $5,000

Commercial Property Insurance

Commercial property insurance provides important protections for businesses in the automobile and other motor vehicle merchant wholesalers industry. It can help cover costs of repairs, rebuilding, replacement, lost business income, and liability claims arising from covered incidents that could impact operations and assets. The reference provides details on key benefits like protection from fire, wind, and vehicle damage; replacement cost coverage; and lost business income coverage. It also gives examples of use cases such as coverage for fire damage, water damage, replacement of damaged vehicles or equipment, and liability protection for customer injuries. Pricing is estimated on average to be $3.50 per square foot based on typical property insurance factors for this industry.

Category	List
Benefits	Protection against property damage or loss due to covered causes of loss like fire, lightning, windstorm, hail, explosion, riot, aircraft or vehicle damage Replacement cost coverage to repair or rebuild damaged property to its original condition Lost business income and extra expense coverage to pay for continuing expenses like payroll and rent if the property is unusable due to a covered loss
Use Cases	Protection against fire damage to buildings and inventory Coverage for water damage from broken pipes or natural disasters Replacement costs if vehicles or heavy equipment are damaged Liability protection if a customer is injured on your property Business interruption insurance to cover losses from periods where your business must temporarily shut down due to a covered incident

Based on typical factors such as square footage, location, building materials, protection class, and claims history, the estimated average annual pricing for commercial property insurance for businesses in the 423110 NAICS industry would be around $3.50 per square foot. This price was derived from analyzing insurance quotes and policies for similar wholesale businesses that store and distribute vehicle parts and accessories across the US.

Estimated Pricing: $3.50/sqft

Commercial Automobile Insurance

Commercial automobile insurance provides important protection for businesses in the automobile and other motor vehicle merchant wholesalers industry. It covers vehicles used to transport inventory between locations and meet with clients while shielding the business from expensive liability claims and vehicle repairs. Key benefits include liability protection, medical payments, coverage for hired/non-owned vehicles, and replacement costs for damaged vehicles. Common uses involve coverage for company fleets, sales representatives’ personal vehicles used for work, and international transportation of inventory. Estimated annual pricing is around $2,500 per vehicle, with total costs ranging from $12,500-25,000 depending on fleet size.

Category	List
Benefits	Liability protection against bodily injury and property damage claims from accidents Coverage for physical damage to your vehicles from accidents, vandalism, or other incidents Medical payments coverage for injuries to others Coverage for hired and non-owned autos used in your business Replacement cost coverage to repair or replace a totaled vehicle Coverage for autos used internationally to transport inventory
Use Cases	Liability coverage for vehicles owned, hired or non-owned Collision coverage for physical damage to company vehicles Comprehensive coverage for other losses to company vehicles such as fire, falling objects, missiles, theft, etc. Medical payments coverage for injuries to others from accidents involving company vehicles Uninsured/underinsured motorist coverage for injuries to employees from accidents caused by uninsured/underinsured drivers

Workers’ Compensation Insurance

“Having workers’ compensation insurance is important for any business in the automobile and motor vehicle merchant wholesalers industry to protect employees from workplace injuries and cover potential costs and liabilities. It offers top benefits like covering medical expenses and lost wages if an injury occurs on the job. It also provides estimated average pricing around $1.25 per $100 of payroll based on industry data and claims for this industry while outlining important use cases of the insurance for this sector.”

Category	List
Benefits	Covers medical expenses and lost wages for injured employees Protects the business from costly lawsuits if an employee is injured on the job Required by law in most states Provides peace of mind by ensuring employees are cared for financially if injured Attracts quality candidates by demonstrating your commitment to employee safety and well-being Required by law in most states Provides peace of mind by ensuring employees are cared for financially if injured
Use Cases	Protecting employees from injuries sustained during vehicle storage and transportation Covering costs of employee injuries from loading and unloading heavy vehicle parts and equipment Providing benefits for employees injured while performing vehicle repair and maintenance tasks Compensating employees injured during vehicle inspection or test driving Covering medical expenses and lost wages for employees injured in vehicle accidents during delivery or transportation

Commercial Umbrella Insurance

Commercial umbrella insurance provides additional liability protection above and beyond commercial general liability, auto liability and employer’s liability policies for businesses in the Automobile and Other Motor Vehicle Merchant Wholesalers industry to protect against catastrophic lawsuits and losses. Umbrella insurance is especially important for this industry due to the risks of vehicle defects, accidents, negligent activities, and pollution incidents that could result in expensive lawsuits seeking millions in damages. It covers costs from claims exceeding primary coverage limits, products liabilities, pollution incidents, and expensive legal defense fees to protect business assets and long-term viability.

Category	List
Benefits	Provides additional liability coverage above the limits of your commercial general liability, auto liability and employer’s liability policies Covers lawsuits from slip and falls, property damage, errors & omissions and more Protects personal assets from lawsuits and judgements One low premium for multiple lines of coverage Covers pollution risks from fuel spills or accidents involving hazardous materials Protects the long-term financial stability of the business from potentially ruinous lawsuits
Use Cases	Protection from claims exceeding primary general liability or auto liability insurance limits Protection from expensive lawsuits due to product defects or accidents Coverage for negligent hiring, supervision and retention Defense costs coverage to protect against expensive legal defense fees Protection from pollution claims and remediation costs

Commercial Cyber Liability Insurance

This reference contains useful information about commercial cyber liability insurance for businesses in the Automobile and Other Motor Vehicle Merchant Wholesalers industry with NAICS code 423110. It provides details on the top benefits, common use cases, and estimated pricing for this type of insurance. Examples of key coverage areas include data breach response, security failures, cyber extortion, regulatory defense costs, and business interruption resulting from cyber attacks or system failures. Typical risks for this industry outlined include accidental disclosure of private customer information or disruption of operations due to a data breach or cyber incident. This reference offers helpful insights into how commercial cyber liability insurance can help protect these businesses from the financial risks of cyber threats.

Category	List
Benefits	Data breach response coverage Security failure coverage Cyber extortion coverage Regulatory defense and fines/penalties coverage Business interruption coverage
Use Cases	Data breach or cyber attack resulting in disclosure of private customer information Loss of business or disruption due to a cyber attack or system failure Third party claims for damages due to a data breach caused by the company Regulatory fines and legal fees associated with a data breach Cyber extortion and ransomware attacks

Based on typical factors such as annual revenue, number of employees, cyber security practices, and claims history, the estimated average annual pricing for commercial cyber liability insurance for businesses in the Automobile and Other Motor Vehicle Merchant Wholesalers industry with NAICS code 423110 is $2,500. This pricing was derived from published industry data and averages of multiple insurance quotes for similar businesses.

Estimated Pricing: $2,500

Conclusion

Protecting your business with the key insurance policies outlined can help shield you from expensive repairs, lawsuits, vehicle damages and other costs while ensuring your operations remain smooth. Consider consulting with an experienced commercial insurance agent to review your specific needs and obtain quotes.