A part of the trade, transportation, and utilities super sector, the wholesale trade industry is a key player in the economy such that retailers depend on wholesalers as an intermediary for merchandise. More specifically, the industry encompasses all establishments that sell or arrange for the trade of merchandise including products for resale, raw materials, and non consumer goods like equipment and machinery.
Regardless of size, a wholesale trade business can work with very large companies and inventories. Since they act as an important intermediary for many, wholesale trade businesses require a business model that can continue to run fluidly, even when faced with an incident or error. For example, merchant wholesalers must be prepared in the event that merchandise is damaged or lost in transit. All wholesalers must prepare to be held partially liable if an error occurs at any point in the distribution chain.
With coverage options such as product recall and commercial property, insurance policies designed for wholesale trade businesses ensure that an accident does not have to result in major financial losses or significant delays for the supply chain affected. Although the industry can be split into just three major categories, they encompass many more subcategories, each with their own unique risks and needs. Here at Diversified Risk Solutions, we can help wholesale trade businesses navigate the vast array of coverage options to create a policy that is the most appropriate fit for them.
Merchant wholesalers, durable goods
Merchant wholesalers, nondurable goods
Wholesale electronic markets and agents and brokers
Facts about the wholesale trade industry:
In the beginning of 2017, the wholesale trade industry employed 5,894,800 individuals (Bureau of Labor Statistics)
In 2013, 58.6% of employment in wholesale trade was in small businesses (U.S. Small Business Administration)
In 2016, the industry was made up of 616,635 private establishments (Bureau of Labor Statistics)
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