The wholesale and distribution industry is responsible for delivering merchandise and goods all over the United States. As they are critical components of our nation’s trade supply, they are undoubtedly faced with many risks in their daily operations. In order to combat these exposures, a comprehensive Produce Distributor Insurance Program is a requirement for minimizing claims with effectively proven strategic risk management.
According to the U.S. Industry and Trade Outlook and the U.S. Department of Commerce and International Trade Administration, wholesale trade sales are approximately $3.2 trillion with approximately 300,000 merchants in the U.S. Therefore, all of the travel and long hours they put in subject these professionals to plenty of risks- here are the most common.
Workers’ Compensation Exposures
Due to the heavy and potentially dangerous equipment that wholesalers and distributors must use on a daily basis, workers’ compensation claims are among the most prevalent in this industry. Further, if an employee fails to follow the safety protocols or injures themselves on machinery, these costs can significantly affect the business’ bottom line. For example, slips, falls, strain injuries on the back and wrists from lifting, car accidents, and forklift incidents are frequently reported.
In order to prevent these exposures, wholesalers and distributors should sort items appropriately, place the items in the correct order, reduce clutter in the final distribution area, and maintain high standards of cleanliness to remain efficient and consistent.
Deliveries are the main component for the wholesale and distribution industry, so properly screening drivers beforehand is a must. A Motor Vehicle Report (MVR) must be completed on each potential candidate to determine if their driving record is acceptable. Next, a physical needs to be conducted to evaluate their overall health and capability to drive. Bear in mind that certain physical conditions or ailments could disqualify the employee from becoming a driver.
Next, a written safety and training program needs to be implemented. This should lay out all of the risks that these employees might face and how to prevent them from occurring. Further, this program should include company policies on driving, alcohol, and drugs as they relate to the job.
At Capital Insurance Group, we provide comprehensive protection for wholesalers and distributors with custom tailored solutions to match their business exposures. Our expertise and knowledge of the industry have allowed us to serve Southeastern Michigan businesses for the last 35 years. For more information regarding our risk management and insurance services, contact our experts today at (888) 296-0418.