Skip to main content
main content, press tab to continue
Report

Mitigating risks in warehouses and distribution centers

By Dan Ferguson | April 11, 2025

Explore strategies to protect your facilities from fire and business interruption risks in our latest report.
Property Risk and Insurance Solutions
N/A

Key takeaways

  1. 01

    Automated systems and dense storage configurations increase fire risks

    Modern warehouses and robotic systems face higher fire risks due to dense storage and electrical components. Some best practices include installing ceiling and in-rack sprinklers, using heat-resistant materials, and conducting regular maintenance and fire drills.

  2. 02

    High-hazard commodities require specialized protection

    Commodities like aerosols or lithium-ion batteries need specialized fire protection. Consider storing them in separate areas with enhanced systems, use flammable storage cabinets and other resources.

  3. 03

    Natural catastrophes and business continuity risks should be mitigated

    Warehouses are vulnerable to natural disasters like floods, hurricanes, wildfires, and tornadoes, which can cause significant damage and disruptions. Mitigation strategies include safe construction, securing equipment, maintaining defensible space, and more.

In today's advanced warehouses and distribution centers, the integration of automated storage and retrieval systems (ASRS) and robotic technologies has revolutionized efficiency while also introducing new risks to mitigate. To safeguard against possible incidents, it's crucial to adopt robust safety measures. Taking a proactive approach can significantly reduce the likelihood and impact of a fire and other business interruption risks. Enhancing your organization’s resilience is vital and can be done by designing facilities with safety in mind, securing all equipment, maintaining defensible spaces, and developing detailed emergency response plans. By addressing these risks and more, businesses can protect their assets, maintain operational continuity, and bolster their relationships with suppliers and customers.

If you are aiming to enhance your organization's resilience, download our latest report, “Fire and business interruption risks in warehouses and distribution centers.” For any questions about developing effective fire and business interruption mitigation plans, feel free to reach out to a trusted WTW colleague or contact us here.

Disclaimer

WTW hopes you found the general information provided in this publication informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, WTW offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).

Author


Senior Property Risk Control Consultant
email Email

Contacts


North America Retail & Distribution
Division Leader

Property Broking Leader Retail & Distribution NA
email Email

Contact us