Owning and operating a wholesale candy distributor business can be a very sweet business to run –literally and figuratively — but also one that includes various risks. As the owner of a wholesale candy distributor business, you will be in charge of distributing an assortment of candies, including milk and dark chocolate, sugar-free candies, hard candy, taffy, caramels, and holiday candy varieties like candy corn at Halloween or peanut butter eggs at Easter. Aside from candy, you might also distribute other snack foods such as nuts, popcorn, or marshmallows. Items are distributed as bulk, wholesale items, as well as individually packaged products in smaller quantities. You will provide your candies and snacks to various retailers around the country. Because of all these functions, risks with your business include products liability, such as illness from your candies, along with work-related accidents, damage to your warehouse from unforeseen events, and other risks. Wholesale candy distributor insurance is essential for protecting your business from these exposed risks.
Types of Wholesale Candy Distributor Insurance
There are many types of wholesale candy distributor insurance policies that will provide optimal coverage for your business. The following are paramount coverage for your business.
You have no doubt heard of general liability insurance for wholesale candy distributors because it is the most basic of business insurance policies. General liability for wholesale candy distributor business includes premises liability, products liability, and completed operations coverage. For example, if candies you provide a retail store causes illness to their customers, this is covered under Products Liability.
Your warehouse has thousands of candies, many of which are chocolates that can be damaged quickly from high heat or extreme weather conditions. If an event such as a fire would occur, not only would your property be damaged and need repairs, but your merchandise is destroyed as well. If there was a fire that ruined all your candy, property insurance would cover it because it covers property and contents. This is an essential business insurance policy for wholesale candy distributor businesses.
Your wholesale candy distributor business is unfortunately at risk for a number of crimes, including dishonest employees who might steal money or candy from you, along with shoplifting and theft from outside sources. If you also have a retail store where you sell your wholesale candies, these items can be stolen from customers and employees. Protect these types of crimes by obtaining crime insurance for your wholesale candy distributor business.
As a wholesale candy distributor business, you’ll need to occasionally pick up or drop off supplies and equipment. You might even offer delivery services for bulk orders. If you use an employee vehicle for these business purposes, you should be covered by a non-owner commercial auto insurance policy. Sometimes you will either need more than what your car fits or you don’t make pick-ups often so you rent a truck or van. In this case, you should have hired commercial auto insurance.
The liability policies for your Wholesale Candy Distributor business (General Liability, Commercial Auto, and Employers Liability) all have coverage limits. An umbrella liability insurance policy is a great way to increase your liability limits for all of these risks under one policy. An umbrella policy will protect your business for claims that exceed your primary policy limits.
In terms of required wholesale candy distributor insurance policies, worker’s compensation is at the top of the list. If your employee got a severe back injury from lifting an especially heavy box, his medical care would then be covered by worker’s comp. Your company is not liable for the injury and your employee benefits from full coverage.
Protecting your business with these insurance policies can be what keeps your business afloat should an unforeseen event happen. Insurance for wholesale candy distributors is mandatory when you want to continue having a successful candy business.