US retail stores achieved a profit of $6 trillion in 2018. And there were about 3,100 more stores at the end of the year than in 2017. While the events of 2020 presented challenges for the sector, retail is a pillar of the economy and there’s no reason to assume it won’t remain so in 2021.
If you are an active member of the retail club that helps the economy grow, have you wondered how safe your business is right now?
More than 15,000 stores could not bear the brunt of the pandemic and shut shop last year. Although nothing much can be done to prevent such global events, the costs of other hazards, like thefts, fire, accidents, injuries, and equipment breakdown, can definitely be reduced. Small business owners are also at risk of incurring losses due to worker’s compensation claims if occupational health and safety measures are not followed properly.
No matter how careful you are, mistakes happen and can prove costly. But there is one way to reduce the chances of such unexpected expenditure. You can buy adequate insurance for your retail store while there is still time.
About 75% of business owners in the US do not have adequate insurance, while 40% of them, including retail store owners, have none at all. It is sad, but crises do not give warnings.
When it comes to retail store insurance, we feel that there is no ‘why’ but only ‘what’ and ‘how’. Without adequate cover, you are playing with fire.
Here’s all the information about insurance for retail stores.
The Business Owner’s Policy (BOP)
The BOP is the basic insurance policy that every store owner should buy. It offers extended property and liability coverage to the retail store, besides protecting the business from loss of income in a disastrous situation. If a fire at the store causes damage to the property, the BOP will not only cover the repair and replacement costs but also recoup the loss of income caused by stalled business operations. It will also cover payroll and mortgage costs, along with relocation expenses, if needed.
The best thing about business income coverage is its extensive protection to other companies that your business depends on. For example, if your supplier company suffers from covered damage, your business could get insurance benefits. In other words, the insurance will protect your business from any covered damage that disrupts your operations.
However, we understand that a retail store may face other risks too. These rare and not-so-rare threats need customized policies that include other aspects of retail business. Some of these additional covers are:
Employment Practices Liability (EPL)
If you have a big store with many full-time/part-time workers, you must prepare for all circumstances. Despite your best efforts, you could find yourself at the receiving end of claims of discrimination, harassment, improper termination, etc., made by your employees. Employment practices liability insurance covers you in such unexpected situations and pays for the necessary expenses. Most importantly, insurance agencies can investigate on your behalf to find out the truth behind such claims.
Employee Theft Coverage
Sadly, not all employees are honest. If anyone steals something from you, this insurance will help cover the losses. You may opt for this insurance as an add-on benefit to an existing policy or purchase it independently. We aim to offer customized insurance packages with such essential options to improve risk coverage. Mostly, the employee theft coverage is a part of an extensive crime coverage offered to store owners.
Commercial auto insurance
Today, almost all retail stores have to make deliveries to customers. Hence, we recommend they buy commercial auto insurance. This includes both collision and comprehensive insurance, apart from liability insurance to offer maximum protection.
Worker’s Comp Insurance
Now, this may be mandatory for retail stores in some states, while for others, it is an option based on the number of workers. But we will recommend you consider the insurance, as it may protect you from financial losses in an unfortunate situation. Having this insurance will not only cover the expenses of claims made by workers who are injured or hurt while at work.
Buying insurance cover to keep your business risk-free may seem an unnecessary expense. But with adequate insurance in place, your business will get the capacity to overcome all obstacles in the competitive world and reach new heights every day.