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Operating an automotive and other motor vehicle merchant wholesalers facility is a challenging task. Not only do you have to ensure the safety of everyone on the premise of your business, but you also need to satisfy your clients. And while there’s a lot you can do to minimize the risks of accidents for everyone involved, in some cases - accidents are completely out of your control.
If an accident takes place that involves your business in any way - whether an employee falls and gets injured or a customer ruins your motor vehicle - without insurance, your company will be the one that has to pay for all the costs involved.
That’s why many wholesalers in the U.S. take the necessary steps to insure their business and protect its financial standing no matter what accident may take place.
How Much Does Automobile and Other Motor Vehicle Merchant Wholesalers Insurance Cost?
No two wholesalers pay the same for their insurance. The premium you’ll pay will depend on the level of cover you take out and the size of your business.
The average automobile and other motor vehicle merchant wholesaler in the United States pay around $150 per month for general liability insurance. This cover provides protection against claims and lawsuits related to third-party injuries and property damage.
If your wholesale business employs staff, you also need worker’s compensation insurance, which costs an average of $200 per month or $2,400 per year. With this cover, your employees are protected in case they get sick or injured at their place of work. Lost wages, medical and hospital fees are some of the costs such a policy will cover.
BOP or business owner’s policy insurance is also popular for wholesalers. This policy combines general liability insurance and commercial property insurance This insurance costs around $120 per month or $1,440 per year.
Wholesalers that deliver orders also need to take out commercial auto insurance. Such a policy will protect your staff, company cars, and any third party involved in the event of an accident. It costs the average wholesaler around $300 per month or $3,600 per year.
What Types of Insurance Do Automobile and Other Motor Vehicle Merchant Wholesalers Need?
There are various types of policies automobile and other motor vehicle merchant wholesalers can take advantage of. The insurance your business needs to take out will depend on the size of your business and the level of cover you want.
Below, you can find some of the most popular insurance policies for automobile and other motor vehicle merchant wholesalers in the United States.
Why Do Automobile and Other Motor Vehicle Merchant Wholesalers Need Insurance?
It is always a great idea to take out insurance and protect your automobile and motor vehicle wholesale business. Below, we’ve discussed a few scenarios that can land you into serious financial trouble if you don’t have insurance in place.
For instance, if an employee falls from a motor vehicle and gets injured while preparing it for delivery to a client - they can sue the business, which without insurance will then have to pay compensation, medical and hospital bills, and other costs associated with the accident out of pocket.
In other cases, if a storm goes through the area where your business operates and damages the roof to a significant amount, without commercial property insurance, your company will have to use internal resources to fix the issue. Were you to have insurance, the insurance company would have paid for everything.
In other cases, automobile and other motor vehicle merchant wholesalers simply don’t have a choice due to state law, which requires them to take out a certain level of cover before they can trade and sell to the public and other businesses.