Wholesale is the driving force of the retail industry, and companies that ship large amounts of product into and around the country not only help to keep shoppers shopping and freight shipments moving, but they also pump billions into the national economy. Wholesalers are responsible for a huge portion of the GDP, and this is as true here in Canada as it is anywhere else.
With so many goods moving across such large distances, these companies face constant risk. Traffic accidents, theft, fire, floods, and even high winds can lead to significant loss, and the risks don’t stop when the products arrive. That’s why wholesale insurance is so important and it’s why KASE provide some of the most comprehensive wholesale insurance in Toronto.
Wholesale insurance is a term that can also be used to describe an insurance policy sold to a group of companies, and it is also known as franchise insurance. For the context of this guide, however, the focus is on insurance sold to those in the wholesale sector.
What Kind of Businesses Fall Under Wholesale?
The wholesale industry can include any company involved with selling large quantities of goods to retailers, but it also includes those responsible for selling goods to commercial enterprises, institutions, and those in professional services. Simply put, they assume the role of the provider for companies that deal with consumers, but they don’t actually deal with those consumers themselves.
The role of a wholesaler is to ensure a quality product and to provide it at a cost that allows the buyer to make a profit. To do this they typically purchase directly from the manufacturer and do so in quantities that allow them to drive the price down. They can then sell smaller quantities for greater prices to the buyer, who in turn can sell single or multiple products for an even greater price.
What are Common Types of Wholesale Insurance?
A wholesale insurance policy can cover a number of things. Companies in this sector can vary greatly in terms of how they operate and what they require. That’s why it’s important for the client to sit down with an experienced insurance broker and to discuss their needs at length. Only then can they acquire a comprehensive insurance policy that provides cover when they need it.
At KASE, we offer comprehensive wholesale insurance in Toronto and further afield and provide coverage for a range of scenarios. Most of these are centred around the stock that wholesalers buy and sell, as this is the lifeblood of their profession. Wholesale insurance can cover the stock when it is in transit and when it is in storage. The actual cover will depend on the exact policy, but typically wholesalers can purchase cover for the following scenarios:
• Theft: Criminals have been known to target trucks carrying large amounts of stock, such as when they are moving to or from the wholesalers. These trucks spend a lot of time on the road, but it’s normal for them to travel over huge distances and to spend days on the road at a time, which means there will be moments when they are stationary and exposed. The transportation company may be covered and may assume responsibility, but in the event that the wholesalers are liable then wholesale insurance can help.
• Loss: Fire, floods, and other unavoidable disasters can lead to significant loss of stock, at which point wholesale insurance may be able to step in and provide cover. Not all eventualities will be covered, so it’s worth discussing this issue at length with your broker.
• Damage: Product doesn’t have to be stolen or completely destroyed for a claim to be made. Severe damage that results in significant financial loss may also be covered.
• Recall and Liability: If the product sold by the wholesaler is recalled and leads to great loss, or it causes harm to the end consumer and results in a costly lawsuit, then a wholesale insurance policy may provide cover.
KASE Insurance: Experts in Wholesale Insurance
You will find an extensive range of policy options on our wholesale insurance for Toronto based companies. This includes coverage for all kinds of products and all kinds of wholesale business. As always, you can also expect the highest level of customer service and support from our experienced and award winning team.
In addition to wholesale insurance, we provide a wealth of other insurance options for Canadian businesses of all shapes and sizes, including insurance tailored to meet the rising threat of cyber criminality, and policies geared towards increasing popular industries such as cryptocurrency and cannabis.
To learn more and to take advantage of our low-cost, fully-comprehensive insurance plans, talk with a KASE representative today.
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