risk assessment

business

Wholesaler

Allied understands that you know your stuff when it comes to a good value. We’re also aware that no two suppliers, distributors, importers or warehouse owners are the same. Common risks concerning wholesalers appear below. For truly personalized business solutions, contact your local, independent Allied agent for more details. 

High risk

Fire

The contents of your warehouse are important to your business, but storage facilities are usually at high risk for fire damage, so extra planning around fire safety can help. Most stock rooms have a design that allows fire to spread quickly. If the fire department has to put out flames, smoke or water could damage items. Your fire risk varies with how much and what type of inventory you have, but keep a watchful eye on all potential hazards.

• Keep inventory away from light fixtures, furnace vents or other heat sources
• Reduce back-stock as much as possible to control clutter
• Contact with a licensed expert to review storage and fire protection systems
• Don’t store combustible materials near mechanical equipment
• Check electrical wires, switches, plugs and cords to find frayed or loose connections
• Test smoke detectors and fire alarms at least twice a year
• Have fire drills, and train employees to watch for hazards
• Keep extinguishers charged and accessible

For additional information on fire safety and prevention at work and at home, visit the National Fire Protection Agency (NFPA) and FireSafety.gov.

Workers’ compensation

Working in a warehouse can be dangerous. High shelves, heavy boxes, forklift traffic and even the break room can be hazardous, even for a careful worker. Accidents aren’t the only workers’ compensation risk, though. Repetitive stress or gradual illnesses from exposures can also produce a claim.

• Train employees to operate tools, especially forklifts or pallet jacks, safely
• Require personal protective equipment like goggles, gloves, lifting belts, masks and sturdy footwear
• Heavy-load handling equipment like dollies, carts, trucks or pallets help to avoid employee lifting accidents
• Mark traffic paths to avoid collisions, especially if pedestrians and forklifts use the same areas
• Choose a safety officer or committee to help with safety training
• Use ladders as directed, for the right purpose and on a steady surface
• Learn about ergonomics and warning signs of risk factors, including awkward posture, high hand force, repetitive motion and heavy lifting
• Maintain all equipment according to manufacturer recommendations

Workers’ Compensation laws are different for each state. Check with the US Department of Labor to find specific information about yours.

Crime/theft

Warehouses can be tempting for thieves. It may seem easy to re-sell stolen goods, plus, the loot is often portable, and they may think loading docks have poor surveillance. Don’t leave your assets vulnerable. Make your business less attractive to criminals.

• Use a safe and protect the key or combination
• Deposit receipts at the bank every day
• Install a UL approved central station alarm
• Get an inventory monitoring system, like ink tags or sensors
• Keep delivery doors locked even during business hours
• Lock up your lifting equipment when you’re not using it, to make it harder for thieves to take more items at one time
• Establish internal controls to cut employee theft
• No matter what, dishonest people will find ways to steal. If you suspect theft, call the police. Don't play detective or try to solve the crime, and don’t jump to conclusions. False accusations could mean serious civil liability

The National Crime Prevention Council has information and tips for reducing all types of crime, theft and violence in homes and businesses.

Data loss

To keep up with competition, inventory and customers, you probably use computers. If you have a website or sell online, you use them even more. So, you know that when computers have problems, business suffers. With a little planning, you can work around occasional system failures.

• Keep paper copies of electronic records and update once a month
• Backup computer files daily or weekly on a disk and store offsite
• Install a UPS (uninterruptible power supply) to give you time to make a clean shut down during power surges or blackouts
• Create a recovery kit, including system disks, registration, manuals and a recent backup
• Use and update anti-virus software
• Train everyone on startup, data entry and shutdown
• If you have questions, contact a technical support person. Most computer retailers have contact information for reliable technical assistance if you need it

Learn more about protecting yourself from internet threats by visiting the Federal Trade Commission’s Information Security website.

Medium risk

General liability

It’s easy to see why you love your work. But, just opening your doors for business each day might open you to liability risks. Any sort of harm to visitors on your premises can hurt your bottom line. Keep it safer by planning ahead, staying alert, and having a policy for damage control.

• Use extra care in cleaning oily, sandy, or soapy spills
• Mark separate pedestrian walkways away from forklifts or pallet jacks
• If customers make pick ups at your location, help them secure loose items
• Mark changes in terrain at eye level, and stay alert for slipping and tripping hazards, since visitors might not watch their steps
• Choose a safety officer or team to check for hazards and handle accidents
• Send trained employees to handle deliveries and represent your company well
• Keep walking and parking areas free of hazards like snow, ice, or loose gravel
• Secure handrails near stairs, and install a nonskid surface on steps
• Limit visitors in storage areas and insist they are accompanied by an employee

Your business is responsible for its impact on the environment. For information about pollution and safe disposal of certain types of hazardous materials, visit the Environmental Protection Agency (EPA).

Product liability

If you assemble, repair, alter or install items for your clients, you might take over risk from the manufacturer if something goes wrong. If you sell items without changing them, your risk in this area could be lower, but you still may take on expenses if a customer is not satisfied.  

• Watch recall bulletins, and tell customers about items that are a known hazard
• Display ingredients to avoid potential allergic reactions
• Never misrepresent a product’s performance
• Leave a business card, showing you’re available to answer questions

Stay on top of consumer product recalls before you sell, and check with the Consumer Product Safety Commission (CPSC) in case you need to give special instructions or warnings to customers about certain products.

Auto/fleet

If use your own vehicles to haul items for your business, or if you run a quick company errand in your car, you need practice fleet safety. Most personal auto insurance doesn’t cover accidents that happen on business time. Be sure you’re covered, in case of emergency.  

• If you offer delivery, allow extra time for safer driving
• Pack cargo securely since it could distract the driver or fall onto the road
• Require all employees to WEAR SAFETY BELTS
• Check tires, brakes, lights, wipers and fluids regularly
• Log maintenance, repairs, and accidents
• Don’t put your keys in the hands of an unsafe driver. Check the driving records of anyone who uses company vehicles
• Provide a cell phone in case drivers need to contact you, but be sure to remind them to pull over in a safe location before they call

For more on driving safely, visit the National Highway Traffic Safety Administration and the Insurance Institute for Highway Safety.

Low risk

Equipment failure

Modern machinery helps you work more efficiently, but you could probably get by the old-fashioned way if you had to with a box and some bubble wrap. Your business might hurt if your equipment were to break down for a while. So, plan now for what you need in a major outage, before you’re caught off guard.

• Schedule checks on major equipment, such as forklifts or packing machines
• Keep maintenance and service logs on all machinery
• Plan for an emergency by locating sources of equipment rental
• Come up with a plan for working without certain machines
• Keep warranty and purchase or lease information organized, so that you can quickly handle a breakdown
• Buy a back-up generator for electricity outages

Professional liability

If your expert advice ends up causing harm to someone, you run the risk professional liability. Instructing or consulting others and making custom fixtures may increase this risk. You may also be responsible if you recommend a product to someone and an injury occurs.

• Display manufacturer guarantees, installation instructions, and warnings
• Print customer agreements to help clients keep realistic expectations
• Never misrepresent the performance of a product 
• Pick a quality control officer or team to follow up on complaints and make improvements

Environmental risk: flooding

Floods destroy more property than any other natural disaster in the United States. FEMA estimates they cause more than $2 billion in damage every year. To better identify your flood risk, you should find out your Base Flood Elevation (the expected flooding level in your area) and the 100-year flood level (the highest water level recorded in the past 100 years). These two numbers will help you understand where to concentrate your efforts.

Being prepared is the key to decreasing expenses after a flood. If you’re building or remodeling your business, work some flood protection tips into your construction plan:

• Before construction, call your building or zoning department. Some laws don’t allow flood-resistant materials below the BFE, because they block the natural floodplain
• Install wiring, fuse boxes, outlets, meters, and switches above the 100-year flood level
• Anchor fuel storage tanks and other outdoor equipment that’s likely to float
• Connect sewer backflow valves, also called "check valves," to block storm water from entering through your drains
• Lift heating, ventilation, and cooling units above BFE or protect it with a flood wall
• Plant trees and flowers that resist soil erosion
• Learn how to shut off your utilities
• Store valuables, important papers, supplies, and inventory above the BFE. During a storm, raise them onto higher shelves, or put them in a waterproof container.
• Write down a cleanup plan: separate undamaged items; make a list of ruined property; clean and disinfect everything that got wet
• Be extra careful when driving. A trace of water on the road is enough to cause hydroplaning and loss of control. Six inches of water is enough to cause your engine to stall. One foot of water will float most cars. Two feet of moving water will carry away almost any vehicle, even big trucks or SUV's

*Flood insurance, and your eligibility for flood insurance is overseen by a government agency, the NFIP (national flood insurance program), and commercial insurance companies do not offer "flood insurance" policies. You can Stay on top of approaching storms with the National Weather Service.

Environmental risk: high winds

Tornadoes, hurricanes and severe thunderstorms are hard to predict, can produce damaging high winds and are some of the most deadly natural forces we know. While these storms are more common in places like “Tornado Alley,” the area of the country from Texas through Indiana, or in coastal areas, severe weather pops up in every state in the union.

Extra planning can help reduce your losses during high winds. If you’re building or remodeling your business, work some safety tips into your construction plan:

• Protect windows with shutters or plywood covers. If you use plywood, pick a system that reminds you which cover goes with each window
• Check and repair metal siding and metal roofs often, so wind can’t blow underneath the panels and rip them away
• Don’t landscape with flying objects: replace gravel with mulch, thin tree branches to let wind flow through, cut off weak tree limbs
• Large glass windows and doors are dangerous in windy weather, so install impact-resistant laminated glass, plastic glazing or a use combination of materials
• Learn how to shut off your utilities, how to operate your storm shutters, and assign emergency responsibilities to your employees ahead of time
• If your office is in a tall building or a temporary structure, like a trailer - seek shelter in a safe location. Don’t try to “ride out” a storm
• Include tornado drills in your regular safety training. Choose an area in your building on the lowest level, away from corners, windows, doors, and outer walls as your safe zone
• Learn what to do if you’re caught outside during high winds
• Use battery-powered lights after a disaster, rather than matches or candles which could start a fire

Need more information on tornado safety? You can also see everything you ever wanted to know about Tornadoes at NOAA’s Tornado FAQ website.

For even more information, and to keep posted on the latest tips and trends, visit:

• Occupational Health and Safety Administration (OSHA)
• National Safety Council
• Institute for Business and Home Safety
• National Institute for Occupational Safety and Health
• US Department of Homeland Security

The information contained herein is intended to assist you in making decisions that may reduce your risk of loss, but is not intended as an inclusive list of all risks. The information contained in this publication was obtained from sources believed to be reliable. Nationwide Mutual Insurance Company and its employees make no guarantee of results, and assume no liability in connection with the safety and loss control suggestions or information contained herein. Furthermore, it cannot be assumed that every acceptable safety or loss control method is contained in this publication, or that unusual circumstances may not require additional methods. The maintenance of safe premises, operations, and equipment is your legal responsibility. Nationwide cannot and does not guarantee that any of the advice is in compliance with your specific state laws.