KBD is an insurance broker that provides tailored coverage
to meet the needs of businesses within the distribution and wholesale sector.
Distributors come in all shapes and sizes; from traditional brick and mortar to E-commerce middlemen, KBD provides commercial insurance solutions for businesses with up to $15 million in annual revenue and who distribute industrial products, food, office furniture, textiles and more.
Our brokers work with multiple insurance markets and will shop for your company in order to find the most competitive rates and the broadest coverage.
Here are some of the core protections we offer for wholesalers & distributors:
Being a distributor/wholesaler means that you act as the middleman, distributing a specific set of products to your customers. The stock (or products) you sell need to be protected from perils such as fire, flood, earthquake and theft while they are being stored in your warehouse.
If you store a large amount of stock on your premises, you will most probably have racks, mezzanines, pallet jacks, dollies, and much more in order to help keep your warehouse organized or to move the stock around. We provide insurance coverage for all of this.
Contents in transit
Do you import your products from overseas? Are they shipped from local manufacturers? Contents in transit will provide coverage for any equipment or stock that is being transported to and from your business location, located within North America.
Similar to contents in transit, marine cargo will cover your stock and equipment while in transit over sea or air. An example would be importing products from a Chinese manufacturer; if you own the products as soon as they leave the Chinese producer, they will need to be insured. Standard “contents in transit” endorsements do not cover your belongings while being transported via ocean (by a vessel) or air (by a plane).
When your business suffers from a claim (like fire or water) not only do you need to replace or repair your building, stock and equipment, but you also need to make up for your loss of profits during the time it takes to recover from the loss. Can your business survive on $0 of revenue for 6 months? If the answer is “no”, then you will most certainly need to have business interruption included on your policy.
Covers you for any extra expenses that you may incur that are over and above your regular day-to-day operating costs to get your business back in operation after a claim. An example would be an insurance broker who suffered a fire at his office, and will potentially need to rent out an emergency locale for two months, in order to keep his business open for this time period. The rent for this emergency locale would be over and above the business’s regular expenses, and would hence be covered by “extra expense”.
Commercial general liability insurance is the most important piece of an insurance policy for a distributor, especially if your business imports products from Asia. One of our brokers will be more than happy to explain and elaborate on why this is true.