Another sub-segment of the wholesale trade industry is Furniture Merchant Wholesalers. These businesses specialize in the wholesale of furniture such as sofas, chairs, tables and other furniture items. They purchase these products from manufacturers and then resell them to retail stores, online retailers, and other businesses.

Furniture Merchant Wholesalers also face unique risks and challenges in their operations. For example, they may be held liable for issues related to the quality or safety of the furniture they sell, such as if the products fail prematurely or have defects. They may also be held responsible for any issues related to the delivery of the products they sell, such as if they are delivered late or damaged.

Professional Liability Insurance can provide protection for these types of risks. For example, a policy may cover the cost of defending against a claim related to a defective piece of furniture that was sold by a Furniture Merchant Wholesaler. It may also cover the cost of settling such a claim or paying any judgment that results from the claim.

In a case of In re: Klaussner Furniture Indus., Inc., a furniture company was sued for breach of contract and warranty after the furniture they sold was found to be defective. The court found that the company was liable for breach of contract and warranty and ordered them to pay damages to the customers. This case serves as an example of the importance of Professional Liability Insurance for Furniture Merchant Wholesalers, as it can provide protection against claims related to defective products and breach of contract.

In addition to Professional Liability Insurance, Furniture Merchant Wholesalers may also need to obtain other types of coverage, such as General Liability Insurance, Product Liability Insurance, and Commercial Property Insurance. General Liability Insurance can provide protection against claims related to injury or property damage that may occur on the business's premises. Product Liability Insurance can provide protection against claims related to injury or damage caused by a product they sell. Commercial Property Insurance can provide protection against claims related to damage to the building or inventory of the business.

It is important for Furniture Merchant Wholesalers to work with an insurance agent or broker who has experience in the wholesale trade industry and understands the unique risks and exposures faced by this sub-segment. By obtaining the right coverage, these businesses can better protect themselves against the financial risks associated with their operations.

In conclusion, Furniture Merchant Wholesalers are a sub-segment of the wholesale trade industry that faces unique risks and challenges. Professional Liability Insurance can provide protection against these risks by covering the cost of defending against and settling claims related to issues such as defective products or delivery problems. Along with other types of coverage such as General Liability Insurance, Product Liability Insurance and Commercial Property Insurance, Furniture Merchant Wholesalers can ensure they have the protection they need to operate their business smoothly and safely. It's important to note that the case law cited is only an example, and the outcome of any case will depend on the specific facts and circumstances of the case.

Last Update: January 2023