Difference between retail & wholesale insurance, what it means - Stubben Edge

Knowing whether you need retail or wholesale insurance can be an important topic for businesses. When it comes to owning a business, insurance needs to cover you for all manner of things from property and staff to public liability and service issues.

Take a look at our guide to the differences between retail and wholesale insurance to help you discover the right one for you.

What is retail insurance?

Retail insurance is for businesses that operate in a retail environment and require commercial general liability and commercial property insurance. Essentially, retailers need to be protected if someone claims against you, therefore retail insurance should cover things like liability, stock, staff and public claims and much more.

It can help retailers insure their assets, so that they are protected from having to pay out huge sums to cover themselves for loss and damage. Retailers can insure their cash flow and ensure that they are protected from situations that might affect the day to day running of their business.

What is wholesale insurance?

Wholesale insurance, on the other hand, is usually for companies that require a franchise policy that covers an entire group of outlets. Within the overarching policy, individual policies will be dealt out so that each individual franchise is effectively covered depending on their independent needs.

Wholesale insurance is ideal for wholesalers who need to have full coverage across the supply chain, which can often cause more risk than a normal retail business. They may also be involved in importing and distributing products which may boost the businesses risk profile too.

Who needs retail insurance?

Every retail business will need retail insurance to cover them in the event of an accident or disruption. Retailers might opt for a bespoke service or a one size fits all solution depending on their needs, but generally, every retail outlet will need to be insured to cover themselves in the event of accidents.

Retailers who aren’t adequately insured put themselves at risk – most businesses that have an incident whereby their business is disrupted will suffer huge losses and may even shut down. Therefore, retail insurance is essential for businesses who want to protect themselves from the risks of running a retail business.

Who needs wholesale insurance?

Wholesale insurance usually covers more than retail insurance and is suited to those businesses that need a more specialist service. Often wholesale insurance will cover for risks outside of admitted carriers, thereby protecting the insured from the unexpected.

Wholesale insurance can be ideal for those who sell or trade high-risk products, sell construction products, deal with pharmaceutical or medical products and need protection against identity theft.

Learn more about how a customer loyalty platform could help boost your offering of both retail and wholesale insurance, by getting in touch today! Plus, for more information on how insurance brokers can stand out in a competitive market, take a look at our blog. 

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