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Insurance for Wholesale

Wholesalers engage in supplying, moving and storing products for retail consumption. Wholesale work requires heavy lifting, repetitive motions and can lead to burnout – all items that can put workers at risk. Get protected with CompSource Mutual – Oklahoma’s leading workers’ compensation provider for more than 85 years.

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Interested to learn more? Read on to get answers to common questions and concerns about workers’ comp in the wholesale industry.

What is wholesale?

The wholesale industry is unique in that the “industry” is not specific to any particular type of product. The term “wholesale” describes a process instead of the product itself. Wholesale companies can sell anything from food products to car parts to energy; the part that makes it “wholesale” is that the wholesale company acts as the middleman in the supply chain, buying directly from a manufacturer and selling in bulk to a retailer.

Wholesale companies typically do not do business directly with consumers. Instead, wholesale companies sell to retailers —such as grocery stores. Grocers then sell the items at a markup to consumers. Wholesalers do not usually make or manufacture their products.

Wholesale companies are in the business of supply chain management (SCM). SCM involves managing and organizing all of the logistics related to bringing raw goods into the hands of consumers. Wholesale companies fill this niche because they are right in the middle of this chain. For example, a manufacturing plant that produces cell phones has all the equipment for creating the phones but may not be equipped to sell them in small batches. This process would require storage, inventory tracking, and delivery. This is where wholesalers come in. The wholesale company buys a large number of phones, and then uses its expertise in SCM to sell the phones to retailers.

Some companies sell wholesale goods directly to consumers – several well-known American grocery stores have adopted this model. In this case, the store buys directly from the manufacturer, then sells the items in bulk to consumers at a discount. However, this model requires that the consumer—usually a small business or family, not an individual—buy the items in minimum quantities. For example, a wholesale grocery store might sell only 50-pound bags of flour instead of the usual 5-pound bag you might see at a regular grocery store. Consumers are expected to buy large quantities and usually need to subscribe to the store with an annual membership. This model can work well for people with large families or people who run small businesses and would prefer to buy, for example, 20 pounds of coffee beans all at once instead of 20 one-pound bags.

Because of the complexity and risk involved in SCM, these companies often carry different types of insurance. We will explore a few different types of insurance for wholesale companies, including workers’ comp for wholesale workers.

Working at a wholesale company

Wholesale companies require numerous workers of different skillsets to help move all of these goods and manage the SCM process. Wholesale companies also require a number of job types, including:

  • Wholesale sales representatives
  • Hand laborers and material movers
  • Warehouse managers
  • Regional directors
  • Marketing managers

Wholesale companies need workers to work on warehouse floors and in offices, managing sales, and logistics. While there are workplace risks involved with both types of jobs, warehouse workers and material movers are typically at a higher risk for physical injury than office workers and managers. Some of the most common injuries are sprains, strains, slips and falls, or object strikes. Warehouse workers also frequently use heavy machinery, like forklifts, which can be dangerous. Unfortunately, forklift accidents and injuries from falling objects are among the most common on-the-job incidents to warehouse workers.

Known risks in Wholesale:
  • Lifting injuries
  • Machinery strikes
  • Chemical exposure
  • Fire hazards
  • Slips, trips, and falls
  • Falling objects

Types of insurance for wholesale businesses

As with any distribution business, wholesale companies need insurance to protect goods as they are transported between locations. Types of insurance that cover these risks may include:

  • Equipment insurance
  • Commercial auto insurance (for company vehicles)
  • Inland marine insurance (for materials transported over land, such as by truck)

It is also important to protect wholesale company employees. Workers’ compensation insurance is one type of workers’ insurance that is typically mandated by the state. Most large companies, like wholesalers, are required to carry this insurance. Workers’ comp for wholesale covers employees’ medical expenses, missed wages, prescription costs, rehab bills, and other related expenses, as long as the incident occurred while the employee was conducting a covered work-related duty.

Other types of general insurance for wholesale companies might also include:

  • General liability insurance
  • Business interruption insurance
  • Property insurance
  • Crime or theft insurance

Running a wholesale business can be costly. But the cost of caring for an injured worker, salvaging damaged goods, or recovering stolen property can be far more. Carrying sufficient insurance for a wholesale company will bring the business owner not just peace of mind, but save money in the long run.

Why CompSource Mutual

When you work with CompSource Mutual, you gain access to a team of experienced professionals ready to help you navigate the ins and outs of workers’ compensation insurance. Our company has served the Sooner State for more than 85 years. With that experience, we’ve built expertise in wholesale and can provide top-notch support and protection for your workers.

Distributors and wholesalers insurance is a catchall term for the type of coverage needed by companies that do business in supply chain management, such as equipment insurance, auto insurance, and property insurance. Having the right coverage can protect a wholesale business from the heavy financial burden that can result from an accident or mishap on the job.

Wholesale insurance agents place business brought to them by retail agents. Unlike retail brokers, wholesale brokers have a direct working relationship with the insurer, whereas the retail agent who produced the business does not.

It’s always a good idea to make employees aware of the workers’ compensation claim process. This includes letting them know how they can be empowered to file a claim and gain access to the information that they need in the event of a workplace injury.

Employees should know that there are many resources to help file claims on their behalf. Typically, an injured worker can contact their supervisor, HR department, or the insurer directly to begin the process.

When CompSource Mutual is the workers’ compensation insurance provider for your company, there are resources available online to get started. Our team is also available over the phone to answer any questions that you have at 800-347-3863.

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