If you own a distribution business, you have risks that are exclusive to your industry. Every company and every industry has to consider the types of risks that face their particular business. Knowing the risks in distribution business is the only way to know which insurance coverages you need.
Theft Within the Company
In the U.S., companies lose about $400 billion every year because of employee theft. As a company that transports and distributes a large inventory, you are at risk. To mitigate the risk, you need to conduct internal audits regularly to both catch theft and to deter it.
Failure of Power
If the power fails, what do you do? If you distribute perishable goods, the power is critical to keeping the food from spoiling. To protect your company, you should have an alarm system that can warn of any power failures. Also, make sure to have generators that can power freezers in case of an outage.
Accidents in Transit or Delivery
To distribute your goods, they have to be transported to you. Regardless of the means of transportation, accidents can happen. Likewise, an accident can happen when the goods leave your distribution center.
Fortunately, there are ways to mitigate the risks in the distribution business. Not only can you be proactive in protecting your company, but insurance policies can protect against losses.