LMBF’s Comprehensive Wholesale & Distribution Insurance Solutions

Retailers, wholesalers, and distributors have unique needs as key members of the supply chain. These businesses deliver products to other retail businesses that, when exposed to certain losses, may risk closing their doors for good. LMBF tailors risk management and distribution insurance solutions for these enterprises, using all its expertise in the industry and knowledge of the wholesale and distribution world to identify potential liability and reduce the overall risk of loss. Wholesale business insurance is a must-have for distributors that want to see success and growth for many years to come. You can start with LMBF by applying for a free quote today.

What it Covers: Wholesale & Distribution Insurance



Property insurance includes coverage for the protection of your wholesale business’ stock, contents, equipment, electronics, furniture, and more to ensure that, if an insurable peril occurs, you can get right back on your feet and continue to generate a profit.



CGL (commercial general liability insurance) offers protection against lawsuit-related costs due to claims of bodily injury, property damage, and so on. The ramifications of a lawsuit can be huge for any business, no matter the precautions we take to avoiding them.

Product Recall

Product Recall

Your wholesale business centers around the distribution of a product to other retailers. If something were to go awry, like a product defect, malfunction, or packaging issue, you could be liable for any consequential injury or damages. Product recall may protect you against any costs that may come of a lawsuit due to product liability.

  What distribution insurance covers
  • Commercial property
  • Commercial general liability
  • Product liability
  • Transportation
  • Unexpected events
  What distribution insurance excludes
  • Fradulent actions
  • Employee dishonesty
  • Intentional actions
  • Criminal activities
  • Wear-and-tear damages

What is wholesale & distribution insurance?

Wholesalers and distributors specialize in getting products to where they need to be - typically to other retailers, who can then sell them to general consumers. They hold up a special end of the supply chain. As such, wholesale & distribution insurance is a coverage package designed to protect these enterprises with comprehensive coverage that is uniquely tailored to the specific risks and exposures that this sector may face.

Types of Wholesale Business Insurance

Depending on the specific needs of your exact business, your wholesale business insurance requirements may vary. Wholesale merchants and distributors are known for their relationship with suppliers and customers, and there’s a lot riding on their distribution method and efficiency. Wholesale business insurance is a necessity for these enterprises, but do you know what you’re covered for in the event that you should need to submit a claim? The exact details of your insurance policy can be overwhelming. Below is a sampling of some of the options that you may already have in your standard policy or are available to you as options. If you are still unsure, you can always discuss with an LMBF wholesale business insurance broker.
Surety Bond

Surety Bond

  • Bonds
  • Guaranteed payment
More info
Property Insurance

Commercial property

  • Physical property
  • Stored belongings
  • Contents
More info
Professional Liability Insurance

Professional liability

  • Negligence
  • Misinformation
  • Omissions
More info
Commercial Auto Insurance

Commercial auto insurance

  • Collision
  • Comprehensive
  • Liability
More info
Business Interruption Insurance

Business interruption

  • Ongoing wages
  • Employee payroll
  • Bills
  • Rent
More info
Commercial General Liability Insurance

Commercial general liability

  • Bodily injury
  • Advertising injury
  • Property damage
More info
Cyber Insurance

Cyber insurance

  • Data breach
  • Restoration costs
  • Liability
More info
Cargo Insurance

Cargo insurance

  • Goods in-transit
  • Accidents
  • Damages
More info
Umbrella Insurance

Umbrella insurance

  • Extended liability
  • Advertising injury
  • Bodily injury
  • Property damage
More info
Equipment Breakdown Coverage

Equipment breakdown

  • Unexpected breakdown
  • Machinery
  • Boilers
More info
Directors and Officers Liability Insurance

Directors’ and officers’ liability

  • Lawsuit expenses
  • Defense costs
More info
Product Recall Insurance

Product recall insurance

  • Product malfunction
  • Defect
  • Injury
  • Damages
More info
Warehousemans Legal Liability

Warehouseman’s legal liability

  • Warehouse operator failure
  • Poor handling
  • Loss or damage of goods
More info
Crime Insurance

Crime insurance

  • Dishonesty
  • Fraud
  • Criminal activity
More info
Risk Management

Risk management

  • Strategies
  • Risk reduction
  • Mitigation
More info

Our Wholesale Business Insurance partners

Your wholesale enterprise deserves only the best. As a business that serves as an integral part of the supply chain, handling marketing, support, packaging, inventory management, handling, product training, shipping, and more, you need comprehensive wholesale business insurance that meets your every requirement. LMBF has partnered with only the best distribution insurance companies to ensure that your enterprise gets the highest quality wholesale insurance available. Start with a free quote to see how easy and affordable great coverage can be.

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Want to Get Started on Your Wholesale Business Insurance Policy? Start with a Wholesale Business Insurance Quote.

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Wholesale Business Insurance: Frequently Asked Questions

A: It may not be mandatory to carry wholesale business insurance depending on where your enterprise is located, but it is recommended to secure your business’ bottom line in the event a disaster should occur - ranging from an unexpected fire breaking out in your warehouse to a liability claim against your operations alleging product malfunction. Suffice to say, wholesale and distribution insurance can be the difference between recovery following a loss and having to shut your doors for good.

A: The cost of wholesale and distribution insurance differs depending on a number of factors. Note that distribution insurance, like any commercial package, is customizable, so coverage will cost more or less depending on your options. Other variables affecting your cost include the type of product that you sell, where it is manufactured, where you sell to/who you sell to, the number of sales you make per year, your commercial property and its location, how much inventory you have at any one time, and more.

A: Your coverage options may vary depending on your provider and policy. Some of insurance coverages are more recommended than others for businesses in the wholesale and distribution sector, including CGL, product liability insurance, property insurance, commercial automobile insurance, cyber liability insurance, and cargo insurance.

A: Any business that specializes as a distributor or wholesale merchant needs distribution insurance. Those include furniture distributors, auto part distributors, imported goods distributors, metal good distributors, industrial supplies distributors, clothing distributors, and more.

A: If your distribution business has cargo insurance, then goods in transit will likely be covered. This includes coverage for goods damaged during unloading and loading, as a result of an accident during transit, or due to mishandling.

A: Wholesale merchants and distributors may benefit from product liability insurance in the event that a product defect or malfunction is perceived to have caused bodily injury or property damage. A lawsuit alleging loss due to a product defect can be astronomical in costs - and even with the best prevention, accidents still happen.