Wholesale distributors know there are many risks that come with owning and running a business. Theft, fire, and flood are just a few reasons to consider wholesale distribution insurance. Know the hazards your company may face and how to mitigate them before disaster strikes.
Performing a risk assessment can help your business prioritize and plan as needed. The Institute for Business and Home Safety reports an estimated 25% of businesses never reopen after major catastrophe strikes. A company in California may want to prepare for fires and earthquakes. Businesses who store or work around flammable materials will also want to consider and plan for the possibility of explosions. And regardless of where a distributor is located, cyberattacks and cybersecurity are key considerations.
Supply Chain Risk Management
Knowing your suppliers and periodically reviewing contracts with vendors are worth spending time on to save headaches later. What clause is in place in case of a natural disaster or national emergency? Wholesale distribution insurance can give you a layer of protection in case the unthinkable happens.
Changing Regulatory Requirements
Government regulations can be complicated and can change periodically. What are the building code requirements in your area? How will you properly dispose of hazardous waste? It’s important to know the answers to questions like these to help stay clear of fines and other noncompliance penalties.