Recognizing Retail Risk: Peak Season Coverage
With summertime on the horizon, seasonal retailers are beginning to open their doors, while some year-round retailers are preparing for their peak season. The summer can be the busiest time of year for many retailers such as florists, ice cream stores, nurseries, garden supply stores and bakeries. According to Forbes, with retail sales expected to grow by 4 percent this year, the number of these stores will likely increase.
Forbes also notes that the brick and mortar physical square footage has increased nine-fold since 2012, and currently 90 percent of retail sales are generated from in-store purchases. With foot traffic, number of employees and amount of inventory on-hand increasing, the exposure to risk becomes greater. In case of loss at their physical location, retailers must have a policy in place to meet their specific coverage needs.
Here are just a few claims examples to show the coverage needs of these merchants:
- A florist’s shop was hit by a storm, which caused roof damage and a power outage. The cost to repair the roof was $20,000, over $10,000 in inventory was lost and the store needed to be shut down for two weeks, causing a loss of income. Because the florist had a policy in force with building coverage, power outage and business income with extra expense, the claim was covered.
- An ice cream store operates year-round but has a much larger amount of sales and inventory in the summertime. The store carries a business personal property limit of $100,000, but a fire causes a total loss in July and destroys $125,000 worth of business personal property. The applicant had a businessowner’s policy in force which automatically bumped up the business personal property limit by 25 percent during their peak season, so the store is covered for the total loss.
- An employee at a nursery watered the plants and left the hose across a walkway in the store. Later, a customer tripped and fell over the hose, breaking their leg. The in-force policy for the nursery had medical expense coverage, and $5,000 was immediately paid to compensate the customer for their hospital visit and ambulance ride.
For all of your seasonal and year-round retail operators, USLI has the answer. With over 70 classes of retail stores, we can consider both established and new stores under USLI’s Main Street Mercantile product. We can even consider covering the exposure of vacancy during the off seasons. We write the package including general liability, property and crime coverage. Many classes are eligible for the businessowners’ policy (BOP). Our product advantages include:
- Value Plus endorsement available
- Electronic data and interruption of computer operations coverage can be purchased
- Ability to offer short-term policies for seasonal operations
- Excess/Umbrella limits up to $5,000,000
- No liability deductible
As the busy season approaches for many retailers, keep USLI in mind for ease of service when quoting these risks. For more information, please contact your Commercial Lines underwriter, or quote now online >>
As always, we thank you for your support and business.
Assistant Product Leader | 888-523-5545 Ext. 2556
Written by Meghan Ritter
June 7, 2018