In the current retail environment climate, retailers face constant cost pressures combined with shorter product cycles and global supply chains. The ability to manage the cost of risk in this climate only becomes increasingly more critical. How will you facilitate an operation’s continued profitability and success in a competitive marketplace? You will need the right combination of insurance and risk management solutions in order to grow successfully. Are you equipped with specialty markets insurance to cover your unique risks?
The Necessary Coverages
It is greatly beneficial to secure a specialized retail insurance program to address your unique risk profile. The most important solutions include:
- General Liability
- Commercial Property
- Business Interruption & Extra Expense
- Equipment Breakdown
- Commercial Auto
- Product Liability
- Cyber Liability
- Employment Practices Liability
- Directors & Officers Liability
- Workers Compensation
Let’s dive into a few of these:
General Liability Insurance
General liability insurance is a fundamental insurance policy for retailers because it covers some of the most common risks they face, namely third-party accusations of bodily injury, property damage, and advertising injuries such as defamation and copyright infringement. Standard general liability policies also cover a retailer’s product liability. Some situations where this coverage would come in handy:
- A delivery person suffers a head injury when your shelving unit topples onto them.
- A customer’s laptop disappears after your clerk allowed them to charge it in the break room.
- An artist claims you stole their artwork and used if for your store logo.
- A customer suffers third-degree burns when the e-cigarette they purchased at your store explodes in their pocket.
General liability often pays for the injured party’s medical bills or damaged property, and it can also cover your legal defense if a lawsuit follows.
Commercial Property Insurance
Commercial property insurance covers retailers’ physical business assets, including their building, equipment, and inventory. Small shop owners often qualify for a business owners policy. BOPs combine property and general liability into a single, convenient package and often include business interruption coverage to pay for expenses when covered events keep retailers from operating. Events typically covered by property insurance include:
Workers’ compensation insurance is a state-mandated policy providing coverage for employees who have suffered occupational injuries and illnesses. Policies typically pay their medical bills and partial lost wages. Most workers’ comp policies also cover your legal bills if an employee claims your negligence or bad intentions caused their injuries. Every state has its own requirements for workers’ compensation, but most require employers to have a policy in place as soon as they hire staff.
Commercial Auto Insurance, also known as business automobile coverage, is needed for retailers with business-owned vehicles or who drive other vehicles for work-related trips. Most states require business owners have at least liability coverage to pay for damage and injuries they cause other people while driving. Coverages retailers can add to their commercial auto liability insurance include:
- Uninsured/underinsured motorist
- Medical payments
Retailer store owners who drive their personal vehicles for work-related errands and deliveries may be on the hook for damage they cause if they don’t have commercial auto insurance. Most personal auto coverage excludes business-related driving, leaving them uninsured. It is in your best interest to consider what specialty markets insurance you need and have not yet secured.
About Moody Insurance Worldwide
Moody Insurance Worldwide, a division of Moody & Associates that was founded in 1914, is a leading provider of risk management programs and insurance coverage to individuals and businesses across the East Coast. We write all sizes of businesses, with technical expertise in many key industry areas, and provide personal insurance programs for estates and high net worth individuals. Our licensed, experienced commercial account managers can work with you to determine the coverage that you need at a competitive rate. Contact us today at (855) 868-0170 to learn more about what we can do for you.