Another sub-segment of the wholesale trade industry is the Metal Service Centers and Other Metal Merchant Wholesalers. These businesses specialize in the wholesale of metal products such as steel, aluminum, and other metals. They purchase these products from manufacturers and then resell them to businesses, government agencies, and other organizations.

Metal Service Centers and Other Metal 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 products they sell, such as if the metal products are defective, not as described, or not suitable for their intended use. 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 metal that was sold by a Metal Service Centers and Other Metal Merchant Wholesaler. It may also cover the cost of settling such a claim or paying any judgment that results from the claim.

One everyday business situation example is when a contractor purchases steel beams from a Metal Service Centers and Other Metal Merchant Wholesaler and finds out that the beams are not suitable for the intended use and as a result, the contractor incurred extra cost to replace the beams and delays on the project. In this case, the contractor could file a claim against the wholesaler for any financial losses incurred as a result of the defective beams.

Another example is when a Metal Service Centers Wholesaler is sued for not providing the proper documentation for the products they sold, and as a result, the products were seized at customs. In this case, the wholesaler could file a claim against their Professional Liability Insurance to cover the cost of defending the lawsuit and any settlement or judgment that may result from the claim.

In addition to Professional Liability Insurance, Metal Service Centers and Other Metal 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 Metal Service Centers and Other Metal 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.

Last Update: January 2023