Depending on the plan you choose, your physical damage insurance will cover your vehicle in case of collision, turnover, fire, or theft. If you own a trucking business, you may require wholesale physical damage auto coverage for your trucks. This means that an insurance retailer cannot sell you coverage, so your insurance broker must purchase a policy elsewhere.
Why Might Wholesale Insurance Be Required?
In the retail insurance market, a broker typically purchases an insurance policy on behalf of a client from an insurance agency that is licensed to do business by the state. These agencies are called admitted carriers and are subject to regulations enacted by the Department of Insurance in each state. In some instances, the risks involved are too great for admitted carriers to cover under the state guidelines, so the broker must go through a specialized carrier, also known as a non-admitted carrier or wholesaler. Truckers may require wholesale insurance because of the risk of safety-critical events caused driver fatigue or other conditions related to the long hours on the road required in the trucking industry.
How Do You Get Wholesale Insurance?
Generally speaking, you acquire wholesale insurance the same way that you gain retail insurance; through an insurance broker. Rarely, if ever, do wholesalers work directly with the clients. Rather, the insurance broker acts as an intermediary.
If your trucking business includes safety-critical risks, retail insurance may not be available to you. Your insurance broker will be able to tell you if you need wholesale physical damage auto coverage.