Wholesale & Distribution Insurance
Warehousing - what could possibly go wrong?
The contents of warehouse and distribution centres are valuable assets and our professional account executives will assist in arrangement of cover in conjunction with risk mitigation and risk assessment procedures.
Despite appearing relatively low risk we have encountered many of the issues that arise from warehouse occupancy, some of which have resulted in substantial losses for client's.
Considerations with all warehousing risks include:
- Safe working loads in accordance with SEMA practices
- Fire Risk Assessments, storage arrangements and arson prevention measures
- Contractors' and agency workers' health and safety procedures
- Mechanical handling equipment methods
- Understanding building and process vulnerabilities
- Fidelity covers and exposure to staff theft
- Security and access controls
- Slips trips and falls
- Fire inception hazards and electrical considerations
- External storage and adjacent property hazards
Wholesale & Distribution Insurance Case Studies
Wholesale of Industrial Machines: Warwickshire: Turnover £6m
We reviewed this client's covers which had been arranged by a global broker with all covers being placed with one Insurer. Despite the broker providing their own “specialist” wording we uncovered duplication of cover, offered a 'warranty free' policy adding additional classes of cover not previously insured and saved the client 9% of his annual premium spend.
The current broker despite conducting an annual review at the client's office had not surveyed the premises or discussed processes for a period of five years.
The client signed up to a three year deal with Delta Corporate and has further savings potential by future use of our “added benefits” module.
Specialist Oil Importer: Midlands: £25m turnover
In 2007 we approached the UK company of a global organisation importing and wholesaling specialist oils and dried fruit with an annual turnover of £11m. Their insurance was held with one of the UK’s top three independent brokers.
The client's stock was held at third party food storage warehouses containing composite panels which often present problems to insurers. Additionally their existing policy had restrictive warranties with which they were unable to comply.
Following our review we restructured the policies and incorporated additional services while reducing their insurance costs by approximately 25%.
The company is now the market leader in their sector with a turnover in excess of £25m and Delta Corporate Risk have been awarded the companies 10th Anniversary Partnership Award.
Retail goods: UK & Ireland: Turnover £30m
We reported on a large wholesale business with seven locations in the UK and Ireland. The business of the client had been sub-broked and the client was without policy wordings on some of his policies.
Once these policies were obtained (at our request) there were major discrepancies with policy conditions that stipulated a method of working with which the policyholder could not comply including a fire alarm condition on two locations where there were no fire alarms fitted.
We had also undertaken a review of the client's business interruption sum insured which was underinsured by circa 25% which was subsequently corrected. We were appointed over the holding broker and another large provincial broker who had also been asked to quote.
Flooring distribution: North West: Turnover £30m
We act for one of the largest independent flooring contractors in the UK after winning their business from a local broker who had held their business for twenty years.
The company import and export on a worldwide basis and the enquiry arose from a personal recommendation. We were able to convince the client to switch covers from a long standing relationship on the strength of premium savings and added value benefits included by our selected insurer.