Accidents, negligence, injury, theft, and natural calamities are all realities that retailers must be prepared for. A business owner is generally held accountable for losses if one or more of these occur, and insurance is your sole source of financial protection.
Insurance may not be able to prevent these calamities from occurring, but it can assist you in bearing the consequences after they occur.
As a business owner, you have a variety of obligations, whether you’re launching a new operation or managing an established one. One of these is to make sure your firm is properly insured.
You, like many small business owners, maybe an expert in your field yet lack insurance knowledge. Choosing the correct insurance coverage takes some skill, and mistakes are often. While some mistakes are trivial, some can have major implications. When purchasing insurance for your business, there are a few mistakes to avoid.
The most typical types of retail insurance claims are discussed in this article:
The basic goal of product liability insurance is to pay legal fees and damages if a defective product is sold from your counter, as this has the potential to cause harm and property damage.
Legal fights over a defective product might extend well beyond the consumer and the company that sold the damaged goods. This has a knock-on impact throughout the supply chain, making procedures more complicated, time-consuming, and costly.
Claims, whether justified or not, must be addressed swiftly since your company’s image and brand may be at risk.
Trips falls and slipping
Everything is in place when your retail store initially opens its doors for business. Your retail business can go from organized to disorganized before anyone can even get to it as the day goes and your customers move goods around.
Here are some simple precautions to take to avoid slipping, tripping, and falling:
- Make frequent checks of your store’s walkways, paths, and product shelves to spot and prevent consumer injuries.
- Make a checklist for your employees that outlines what needs to be done and when it needs to be done to guarantee that your store is properly maintained. This has a dual purpose: it protects your store safe from dangers while also keeping it clean for your consumers. It’s a win-win situation!
- Always mop up spills right away and post signs indicating that the floors are moist.
- Make sure your store’s exterior is well-lit and that you’re prepared for the weather in your location by laying down mats and correctly affixing signage as necessary.
Theft and shoplifting in stores
Shoplifting organized retail crime, and staff theft is all on the rise in the retail business, according to the National Retail Federation. Theft and other retail shrinkages are already costing retailers more than $60 billion each year.
Although there is no way to completely eliminate theft, there are steps you may take to lessen your risk:
- You can track received merchandise and immediately discover missing items by implementing a retail inventory control system.
- All merchandise will be equipped with electronic tags. This is a simple and effective approach to prevent theft because it sounds an alarm if someone tries to leave your store without removing the tag.
- Make sure your store has enough people to handle the workload. This makes it more difficult for shoplifters to conceal products in their bags, clothing, handbags, or beneath their coats.
- Installing a bell that warns you and your team when customers arrive or leave your business is a low-cost yet efficient solution. This will assist you track anyone who has left without paying.
- Install security cameras to monitor employee and customer activities inside your storage rooms, retail premises, and at the cash register.
Fire and weather damage
Whether or fire can cause damage to a structure and its contents, which is a risk for any retail business owner that leases or owns space.
According to the Bureau of Fire and Protection, each year, fire departments across the Philippines react to an estimated 13,750 fires in retail stores and other mercantile buildings.
Here are some suggestions to help your business avoid fires and extreme weather damage:
- Regularly inspect your property, particularly the electrical system, and ensure that all necessary maintenance is performed.
- Always be on the lookout for opportunities. If severe weather is predicted in your region, take measures.
- Sprinkler systems should be installed in warehouses and stock rooms where flammable items may be stored.
- Check to see if the fire extinguishers and fire alarms are operational.
- Ensure that employees are appropriately taught so that products or equipment do not obstruct exits, alarms, or sprinklers.
If your retail business property is damaged as a result of a covered occurrence, fire insurance can help cover the costs. If you’d like to learn more about how to receive the best coverage for your retail business, contact MGS Insurance today!
What Are the Most Common Business Insurance Policies?
General liability insurance, which covers bodily harm, property damage, and personal injury; commercial property insurance, which covers your owned or rented business property and equipment; business income insurance, which covers lost income so that you can pay bills and other operating expenses; professional liability insurance, which covers lawsuits against your business; workers’ compensation insurance, which covers employees; and professional liability insurance, which covers lawsuits against your business.
If you own a business, you should talk to a qualified insurance agent or broker about your insurance needs in detail, and be entirely honest when describing your company so that whatever coverage you get is suitable.
Make sure you understand what’s covered and what isn’t, and reassess your coverage as your company grows. Once you’ve determined what type of policy or policies you require, you may compare costs from several insurance companies to find the best deal.
When you own a business, you must plan ahead for the potentially challenging situations that may arise. Owners must be prepared for future catastrophes that could jeopardize the company’s standing.
Insurance makes it simple for you to handle everything on your own. The sum may seem daunting, but it is appropriate given the value it holds as a business owner.