Risk Management – Retail Operations

Owning and operating a retail store can be a fulfilling experience. Years of hard work, risk-taking and financial investments have allowed you to turn your dreams of opening a store of your own into a reality. Depending on the specific type of store you manage, there are a number of exposures to consider, including risks related to property and merchandise damage, general and product liability, crime and business continuity. The list below provides an overview of these retail industry risks and more—helping you identify potential blind spots in your risk management and insurance programs:

  • Physical damage of your building, signage, merchandise, or equipment can come from many sources, including extreme weather, customers, employees, and vandalism
  • Equipment breakdown such as computer, mechanical, electrical, HVAC, and point of sale system outage, can cause business interruption or even prolonged closures
  • Crime is a major issue for retailers – scams, shoplifting, robbery, money fraud, check-out fraud, refund fraud, etc.
  • Premises liability exposures are significant – slips, trips, falls, unauthorized access to your building
  • Workers’ Compensation claims  – slips, trips, falls, injuries due to repetitive motions, sprains and strains
  • Product liability (safety and reliability) – if your product fails to meet the expectations of your customer, this can lead to financial losses from legal fees and settlements
  • Business can be interrupted by unforeseen circumstances such as natural disasters, fire, product recalls, cyber events, staff shortages and supplier issues
  • Cyber Crime – employees who are improperly trained on computer and data security could expose your business to ransomware, viruses, phishing scams and malware.

Proper risk management practices can reduce certain exposures, but no system is 100% effective in ensuring an incident-free workplace. As a result, it’s crucial to work with a trusted insurance professional to assess your unique exposures. To learn more, contact Consolidated Insurance + Risk Management today!