Distribution companies operate in one of the environments with the highest risk exposure: goods in constant motion, fleets on the road, warehouses with large volumes of stock, and a logistics chain that, if interrupted, can paralyse the business. A single incident — a warehouse fire, a delivery vehicle accident, or the spoilage of perishable goods — can represent losses of hundreds of thousands of euros.
Despite this reality, many companies in the sector maintain generic policies that do not reflect the specificities of distribution activity. The result is insufficient coverage, unknown exclusions, and deductibles that render the insurance practically useless in critical moments.
Specific risks in the distribution sector
A distribution company accumulates risks that span different insurance categories. Identifying and quantifying each one is the first step towards effective protection:
- Goods in transit: damage, theft, spoilage due to refrigeration equipment failure, or delivery delays
- Vehicle fleet: road accidents, third-party liability for damages, mechanical breakdown, and immobilisation
- Warehouses and distribution centres: fire, flood, structural collapse, theft, and vandalism
- Stored stock: value of own and third-party goods in storage, including perishables and high-value products
- Civil liability: damage caused by goods to the end consumer, delivery errors, and contractual non-compliance
- Supply chain interruption: loss of revenue and extraordinary costs resulting from operational standstill
Essential coverages for distribution companies
An appropriate insurance programme for the sector should integrate various policies in a coordinated manner, avoiding gaps and overlaps:
- Goods in transit insurance (inland transit): "all risks" coverage for goods in transit, including loading and unloading
- Fleet insurance: a single policy for all vehicles with own damage coverage, civil liability, roadside assistance, and cargo protection
- Industrial multi-risk insurance: protection for the warehouse, logistics equipment (forklifts, shelving, refrigeration systems), and stock
- Operating and professional civil liability insurance: coverage for third-party damages during operations and for errors in service provision
- Business interruption insurance: compensation for loss of gross margin during the recovery period after a claim
- Machinery breakdown insurance: protection for essential equipment such as cold storage rooms, sorting systems, and loading platforms
Common errors we find in the sector
In our experience with distribution companies, we identify recurring error patterns that expose businesses to avoidable losses:
- Underestimation of warehouse stock — coverage does not keep pace with seasonal inventory variations
- Exclusion of third-party goods — many policies do not cover goods in storage belonging to clients
- Inadequate fleet coverage — new vehicles without own damage cover or old vehicles with unnecessary coverages
- Absence of transit insurance — carrier liability has legal limits far below the actual value of the goods
- Lack of business interruption coverage — the warehouse is rebuilt, but the business loses months of revenue
At Adler & Rochefort, we analyse our clients' entire logistics chain and design integrated insurance programmes that eliminate gaps and optimise costs. If your company operates in distribution, contact us for a free analysis.