Running an equipment distribution business comes with its own set of risks. From theft and fire damage to accidents during deliveries, these challenges can disrupt operations and threaten financial stability. Deidra Hoschak, a senior small business underwriter at Central Insurance, shares important advice on the types of insurance that equipment distributors—especially those outside the food and beverage sector—should consider to protect their business.
Equipment distributors play a key role in getting tools and machinery to various industries, whether it’s electrical gear, heavy equipment, or specialized industrial products. Because of the unique risks involved in handling and transporting valuable equipment, having the right insurance coverage is essential.
One of the basics every equipment distributor should have is general liability insurance. This protects against claims related to bodily injury, property damage, or personal injury involving third parties. With various vendors and customers potentially requiring different levels of coverage, sometimes up to $5 million, working with an agent who understands these needs is important.
For smaller operations, a Business Owner’s Policy (BOP) can be a good fit. It bundles property and liability insurance into one straightforward package. This covers buildings (if owned), equipment, and inventory, as well as defense and damages from liability claims. Additional options like business income protection or cyber liability can be added if needed.
Protecting physical assets also means looking into commercial property insurance. A single event like a fire or theft can severely harm a business. This coverage may include protection for buildings, office equipment, shelving, and inventory. Businesses with seasonal inventory changes might also benefit from peak season endorsements.
Since equipment often moves from place to place, inland marine insurance is an important consideration. This type of coverage insures goods in transit and equipment that doesn’t stay fixed, such as forklifts. Without it, valuable assets could be left uninsured during transport or when off-premises.
If vehicles are part of the operation—used for deliveries, pickups, or moving equipment between warehouses—commercial auto insurance is a must. It covers accidents involving business vehicles, physical damage to those vehicles, and tools or equipment inside them. For businesses renting or leasing vehicles, hired and non-owned coverage is also needed.
On the safety side, Workers’ Compensation protects employees from medical costs, lost wages, and rehabilitation expenses if they get injured on the job. This coverage is often legally required and helps businesses avoid the full cost of workplace injuries. Central even offers a nurse hotline to help injured workers get quick medical attention and speed up claims.
Lastly, businesses facing higher liability risks can consider umbrella insurance. This adds extra coverage beyond the limits of general liability and auto policies. It’s a useful way to protect the company’s finances in the event of costly lawsuits, especially when transporting expensive customer equipment or working in litigious markets.
Central Insurance stands out by offering tailored coverage options, a strong claims service, and experienced guidance to help equipment distributors find the right policies for their specific risks. With nearly 150 years in the business, they focus on building long-term relationships to support companies at every stage of growth.
If you run an equipment distribution business, taking a close look at your insurance needs can help you avoid big losses and keep your operations running smoothly. Reaching out to an independent Central Insurance agent could be a smart step toward better protection.