Everything You Need to Know About Retail Insurance

Retail Insurance

There are almost 140,000 retail businesses across Australia, yet with the popularity of online shopping, brick and mortar retail stores are finding it harder and harder to make ends meet.  With their razor-thin profit margins, even a short disruption in business due to a storm or equipment breakdown can cause a store to have to close its doors forever.  A single lawsuit can force your company into bankruptcy.  Now more than ever, it’s important to have the right retail insurance for your company to protect against threats to your business.

What is Retail Insurance?

Retail Insurance is insurance coverage for all kinds of businesses within the retail industry.  They generally include Shop, Supermarket, Warehouse, and Wholesalers Insurances.  When you own any retail establishment, you face a multitude of risks that can include public and product liabilities, theft, property, fire, cyber, and loss of business along with many others.  A complete Retail Insurance policy will help to cover the costs of repairs, stolen merchandise, lost revenue, and lawsuits.

Before buying retail insurance, you should take the time to thoroughly consider the risks faced by your company.  Think about the day-to-day activities of your business, and ask the following questions:

  • What kinds of equipment do we use?
  • How many people visit my store daily?
  • What type of stock do you have? For example, is it perishable, flammable or bulky?
  • How likely is it that my business will be affected by a natural disaster? Is it located in an area prone to cyclones or bushfires.

By understanding the risks that could cause a shutdown, require costly repairs, or open your business up to lawsuits, you can source the coverage you need to adequately protect the future of your business and your employees.

Shop Insurance

Shop Insurance is a type of business insurance specifically designed for retail shops and shop owners to deal with the risks involved with owning and running a store.  Risks involved with running a shop include theft of merchandise or money from outside individuals as well as employees, public liability (if someone trips and falls over a box that was left on the floor), product liability (if you sell a product that caused injury to someone), equipment breakdown and hackers infiltrating your computer system.

Considerations that will affect the most appropriate policy for your business include the size and type of your business, the number of employees you have, whether you rent or own your premises and many other factors to recommend the right policy to fit your shop.

Retail Insurance

A Shop Insurance policy may include following:

  • Business Pack Insurance: Because each retailer’s needs can be different, this coverage provides a wide range of insurance protection for your business tailored to suit your company’s specific needs.
  • Commercial Property Insurance: This basic coverage protects your company against damage to your physical assets and property.
  • Public Liability Insurance: This protects the company against legal and court costs if someone is injured or their property is damaged while at your business, i.e. slips and falls, etc.
  • Business Interruption Insurance: This covers the store for loss of profits while the business is out of action due to a direct loss, damage, or destruction to your insured property.
  • Machinery Insurance: This insurance covers you if your machinery and equipment breaks down and needs to be repaired or replaced.
  • Electronic Equipment Insurance: This coverage is insurance against costs and losses due to computers or other electronic equipment breaking down.
  • Glass: Glass coverage is important for shops with shop front windows, glass shelving or display cabinets, or advertising signs, as replacing them in the event of breakage can be expensive.

Supermarket Insurance

The supermarket industry is a huge part of the Australian economy.  With more than 2,000 supermarkets nationwide, they generate $105 billion in revenue annually.  The grocery industry is an extremely competitive one and faces many day-to-day risks.

Because they carry perishable items and often employees will use dangerous machines for cutting meat or cooking baked goods, supermarkets have their own risks.  Typically, supermarkets have machinery such as meat cutters, deli slicers, freezers, refrigerators, and ovens, all of which could break down and need to be replaced, but also there may be a loss of revenue while the machine is being fixed or replaced.  Something as simple as a broken freezer could result in thousands of dollars in spoiled product.  Slips and falls are common in grocery stores because spilled produce can create slippery surfaces, which pose a danger to customers and employees.  There’s also a high risk of food poisoning, which could result in a lawsuit.

Retail Insurance

A complete Supermarket Insurance policy usually consists of:

  • Business Interruption Insurance: This covers your business for loss of profits while it is closed due to an insured circumstance such as natural disaster, fire, or some other direct loss that causes the store to be unable to operate.
  • Commercial Property Insurance: This basic coverage protects your company against damage to your physical assets and property.
  • Cyber Insurance: This protects a business’ computer systems. It covers against hacking, data ransom, data theft, and data destruction.
  • Electronic Equipment Insurance: This coverage is insurance against costs and losses due to computers or other electronic equipment breaking down.
  • Machinery Insurance: This insurance covers you if your machinery and equipment breaks down and needs to be repaired or replaced.
  • Public Liability Insurance: This protects the company against legal and court costs if someone is injured or their property is damaged while at your business, i.e. slips and falls.

Warehouse Insurance

Even if all required safety procedures are followed, warehouses are dangerous places to work.  Because they utilize high places for keeping inventory, there is an increased risk of falls from heights or of falling objects causing injury.  Back injury is common for warehouse workers as they routinely lift heavy boxes and pallets manually.  If debris is not cleaned up immediately, slips and falls can occur.  With warehouse machinery, there is always a risk of serious injury, but the machinery is also expensive and if it breaks down it may need to be repaired or replaced.  These kinds of down times can be extremely costly to a company without business interruption insurance.  Fire is always a major danger for warehouses.  Fire can start from electrical problems, careless smokers, or charging batteries.  A fire can cause property damage, loss of stock, and injuries.

Retail Insurance

Warehouse insurance coverage usually includes:

  • Fire and Storm Damage: This protects you against loss or damage to your building, contents or stock as a result of damage from fire or natural disaster.
  • Burglary: This insurance cover protects you against loss due to a break in, where your stock, contents or equipment are stolen.
  • Money: This type of coverage protects against money being stolen from your property.
  • Glass: This is for businesses that have windows, glass shelving, display cabinets, sign writing and advertising signs which can be expensive to replace if broken.
  • Public and Products Liability: This protects the company against legal and court costs if someone is injured or their property is damaged while at your business.
  • Goods In Transit: This covers you against the risk of stock being damaged or lost when moving between locations.

Wholesalers Insurance

Wholesalers are a key element in the retail industry’s supply chain.  They face many of the same risks as warehouses―fire, injuries, machinery breakdowns, but a significant amount of their risk comes from their day-to-day operations, from Public and Product Liability exposure to losing stock through theft, fire or in transit.

Retail Insurance

Wholesalers insurance policies might include:

  • Fire and Storm Damage: This coverage protects you against loss or damage to your building, contents or stock as a result of fire or another natural disaster.
  • Burglary: If there is a break in at your warehouse and stock, contents, or equipment are stolen, this coverage will protect you.
  • Money: This important coverage protects you against money being stolen from your premises.
  • Glass: If your business has shop front windows, glass shelving or display cabinets, sign writing and advertising signs, this cover will protect you against costly breakage.
  • Public and Products Liability: This protects the company against legal and court costs if someone is injured or their property is damaged while at your business.
  • Goods In Transit: This covers you against the risk of stock being damaged or lost when moving between locations.

It can be daunting to think about all of the things that could go wrong for your business when you just want to get back to selling your product and running your business, but having the proper retail insurance will give you peace of mind that something outside your control won’t destroy your company.

The right coverage will allow you to concentrate on what you do best―selling your products!  At PSC Direct, our experts will help you put together the right policy for your business so you have the coverage you need for any situation.  We cater your policy to your specific business so you have the coverage you need without paying for coverage you’ll never use.  Call PSC Direct today.  We’ve got you covered.