Posted on May 17, 2014
The retail industry provides countless products for consumer to use and enjoy. In fact, shopping is a favorite pastime of many American consumers. Retail store owners invest a lot of time and money into supplying inventory to meet customer needs while at the same time trying to grow sales and increase profits.
With all that retail owners invest into their companies, protecting the business with the appropriate insurance coverage is more important in today's litigious marketplace.
Business Owners Policy (BOP)
The business owners' policy is a common coverage for retailers. It combines basic property and general liability protection into one package for ease of coverage as well as affordability. The property portion of the plan protects buildings, inventory, equipment and furniture from damage or loss caused by storms, fire and theft. The business liability coverage covers retail stores from defense costs related to lawsuits alleging accidental injury or property damage. Retail stores can take this basic BOP insurance and then customize it by adding additional options to the plan. Most insurance companies suggest that retail establishments add business income coverage to help pay for any income losses when the store must be closed for repairs due to a covered event such as fire. Medical payments coverage may also be needed for store visitors who injure themselves while shopping at the business location.
Product liability insurance is another coverage retail stores should seriously consider. If someone is injured because of a product that a store makes, sells or distributes, the business owner can be held liable for that injury especially if the item is defective or dangerous. Product liability coverage pays for legal defense, medical expenses and any court awarded damages if the insured business is found liable.
Unfortunately, theft is quite common in retail stores, but crime insurance can put an end to significant losses that retail store owners experience. Crime insurance policies can provide coverage for the following:
· Employee dishonesty, stealing and embezzlement;
· Money and securities so that any money stolen during a bank deposit is protected;
· Counterfeit coverage if customers pass phony or counterfeit bills for payment and
· Forgery by trusted accountants or bookkeepers who write company checks to themselves.
Peak Season Coverage
Peak season insurance protects retail businesses from the risk of adding more merchandise inventory during peak or holiday selling seasons.
Insurance for retail stores provides peace of mind for business owners and protects employees and visitors from the unexpected. When it comes time to purchase insurance for your retail establishment, consult with our professional insurance agents, who are here to help you customize an insurance protection plan that will fully protect your store.