Insurance when Choosing a Fulfillment Company

Ask this question when choosing a fulfillment vendor: what happens if ownership is no longer available to the operation?  Insurance is necessary for inventory of course, yet for ongoing fulfillment operations, what happens when the owner is gone?  Many fulfillment houses are relatively small businesses that may be on a list of potential choices for servicing an account; and do not have the wherewithal to continue on without ownership.

While some carry applicable insurance policies to cover business loss or disruption, best to ask the question of the potential fulfillment company: what is the plan for business continuation.  Who is on board there to see orders go out the door with no service interruptions?  And can the outfit sustain itself without an owner.

Insurance is always at the bottom of the list of business essentials; but no list of good, or best-practice, decision making questions should be go unanswered.  Perhaps a question-list review will confirm insurance is covered.

Other questions: if you lost your largest client, could you continue?  What is the percentage of business from the three largest clients?  Is the software used for order processing and management proprietary or third party?  Is the facility-building owned or leased that holds inventory and operation?  These are some basics for outsourcing an ongoing service provider.