Workers’ Comp Risks for Wholesalers and Distributors

Workers’ Comp Risks for Wholesalers and DistributorsWorkers’ compensation claims account for the majority of claim costs for Michigan Wholesale and Distributor Insurance policy holders. While this component is an inevitable factor in the industry, it’s important to understand which types of incidents are the most common in order to prevent them from occurring in the future. Therefore, in addition to a custom-tailored insurance policy designed with Best Practice Procedures, integrating proven risk management processes specifically to prevent claims, which is required for all wholesale businesses, heed the following advice.

What causes these workplace injuries?

The top four leading causes for injuries in the wholesale/distribution industry are as follows:

Lifting Incidents (32% of claim dollars)- According to CNA, although forklifts are used to transfer goods from the trailer to the warehouse and goods within the warehouse, there is manual material handling. Claims data reveals losses from manual lifting of stacks, bundles, rolls of raw materials, and finished products of various shapes, sizes and weights.

Excessive bending, twisting, reaching, loading and unloading the trailers are known to cause back and shoulder injuries, so materials should be handled with care and not to excess.

Struck By Accidents (17% of claim dollars)- Fractures and crushed bones are common from being struck by heavy machinery and equipment. These major injuries are also supplemented with bruises, pinched body parts, and lacerations from securing cargo and when using racking systems.

Exposure to Irritants (4% of claims)- Injuries resulting from exposure to irritants, fumes and extreme weather conditions when working in coolers or outdoors are common for this sector, as well.

Vehicle Accidents (10% of claim dollars)- As we discussed in a previous blog, vehicle exposures are a huge concern for wholesalers and distributors.

How can I prevent these injuries from occurring?

Proper training on using equipment and handling materials should be a top priority for this industry. In addition, provide the necessary supervision and uphold best practices when it comes to sorting and storing materials and reduce clutter in the final distribution area- which means maintaining high standards of cleanliness to remain efficient and consistent. Lastly, good housekeeping practices are a must.

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 has 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.