The distribution industry is one that is pertinent to the trade supply throughout the nation. As this sector is responsible for transporting and delivering goods throughout the country, the U.S. Department of Commerce and International Trade Administration states that wholesale trade sales are approximately $3.2 trillion annually with approximately 300,000 merchants in the U.S. However, this industry is not without its risks. To adequately secure their operations, these businesses need a Produce Distributor Insurance Program designed with Best Practice Procedures, integrating proven risk management processes specifically to prevent claims, which is required for all wholesale businesses.
Auto exposures.
Delivery vehicles are the backbone of this industry, so a comprehensive and thorough screening process must be followed in order to find qualified candidates. A valid driver’s license is required along with completing a Motor Vehicle Report (MVR) to determine the driver’s personal history. Lastly, a potential driver must undergo a pre-employment physical to identify any potential health issues that could disqualify him or her from driving privileges within your company.
Once hired, a written and well-documented training program should be provided. Instructions and safety measures need to be tailored for the specific type of vehicle being operated, also detailing the company’s policies and procedures for operating vehicles. This includes drug and alcohol policies as they relate to their duties behind the wheel.
If an accident occurs, the driver should follow the Accident Guide/Accident Kit, which should be kept in the glovebox of the delivery vehicle. This protocol is especially important as it explains how to exchange information and manages the situation to reduce claims of negligence and minimizes liability.
Workers’ Compensation
Due to the heavy equipment and dangerous machinery, this is one of the most common risks in the produce distribution and wholesale industry. For example, some common risks include slips, falls, forklift incidents, and back injuries sustained from manually handling goods and materials.
To reduce this risk, items should be sorted correctly, placed in the correct order, and be upheld to the highest cleanliness standards. Clutter should be removed prior to handling any inventory and housekeeping practices should be consistent and prompt to prevent any additional accidents.
About Capital Insurance
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.