The Quest Newsletter is published quarterly and is designed to provide critical information in the transportation industry. Avalon Risk Management is not responsible for the accuracy or reliability of information contained in articles. The reader/user assumes all risk in the use of such information.

150 NORTHWEST POINT BLVD. • ELK GROVE VILLAGE , IL 60007 PHONE: ( 847 ) 700 -8100 • FAX : ( 847 ) 700 -8116 • WWW.AVALONRISK .COM

WAREHOUSE THEFT PREVENTION TIPS According to the FBI, There are over 5,400 burglaries per day with a burglary occurring every 14.6 seconds. Over 25% of those are on commercial property. With containers stacked full of merchandise and large buildings that aren’t always monitored, warehouses are an easy target for criminals. In an instant, thieves can steal $200,000 worth of electronics. With large volumes of various products in one location, a warehouse is ripe for the picking. Damages from theft are not just monetary and physical – theft at a warehouse is damaging to a business’ reputation. Many warehouses store goods for multiple clients. If one client’s merchandise is stolen, fear and concern will spread amongst other clients that their stored cargo could be in danger too. Even though you may think your warehouse is properly secure, here are a few tips that warehouses can employ to make sure they have a defense against burglary.

• Surveillance Cameras – There is no bigger threat to a criminal than the threat of being caught.

Surveillance Cameras are the most common way to capture a criminal in the act and a helpful way to identify and catch thieves. Obviously more cameras offer more protection, but with budget constraints, optimal camera usage is in high trafficked areas and exits. Make sure cameras are faced towards doorways and are set in a way where they can capture the passerby’s faces. Cameras outside the warehouse are useful visible deterrents. Parking lot cameras also allow for capturing of vehicle information, another valuable tool in identifying the criminal

• Keeping Exterior Grounds Protected – o Gate – A gate creates controlled access to the facilities. With a gate, there is the ability to track

who comes in and out. o Landscaping – Minimize large plants and shrubbery. A visible line of sight to all entrances and

potential break in points is optimal for monitoring of the premises. Trees or high cut bushes can block a camera or guard from spotting a potential burglar.

• Alarms – Alarms are the most popular anti-theft device. Alarms are installed in around 90% of

commercial properties and according to a Philadelphia study, non-alarmed properties are 4.57 times more likely to be burglarized. Alarms will startle a burglar, but they are not enough to protect your warehouse on their own.

• Reduce Anonymity – Criminals work much better when they know the ins and outs of their target. o By having employees wear identifiers, nametags or uniforms, it will make those who do not

belong, stand out. o Track who enters the building and different zones within the building with different sign in

sheets. Knowledge of who has been in what area is a great tool in identifying theft and in preventing internal threats.

o Perform background screenings on all warehouse employees and all new hires.

The Quest Newsletter is published quarterly and is designed to provide critical information in the transportation industry. Avalon Risk Management is not responsible for the accuracy or reliability of information contained in articles. The reader/user assumes all risk in the use of such information.

150 NORTHWEST POINT BLVD. • ELK GROVE VILLAGE , IL 60007 PHONE: ( 847 ) 700 -8100 • FAX : ( 847 ) 700 -8116 • WWW.AVALONRISK .COM

• Good Lighting – Keeping the exterior well lit helps with visibility and acts as a deterrent. Lighting front entrances, parking lots, loading platforms and service entrances is key. Most importantly, maintain lighting by promptly replacing burnt or missing bulbs.

Prevent internal and external thievery at your warehouse by implementing some of these protective measures. Overall, protect yourself and your clients’ interests with a solid Warehouse Insurance program. Because Avalon Risk Management has years of experience in understanding the industry’s logistics needs, we offer a Comprehensive Warehouse program. Some of the coverage offered are Warehouse Legal Liability, Property, Crime, General Liability and Workers’ Compensation. Flexible coverage structures and Specialized Warehouse Legal Liability Coverage Extensions for the following:

• Mysterious Disappearance/Inventory Shortage • Processing (Value added services) • Cross Docking & Trans-loading • Loaded or Dropped Trailers • Contractual Liability Coverage • First Party/Direct Damage coverage for warehouse customer’s goods • Contamination • Employee Theft • And more

We understand the risks facing your business and our program provides a cost-effective, financially sound alternative to help protect you. Our experts can help you review your risk management needs. Visit www.avalonrisk.com to learn more or contact your local Avalon representative for a quote.