Retail Hazards for Back-to-School Season
Summer may be winding down, but back-to-school season is in full swing. This annual tradition of purchasing clothing, stationery and electronics is the second biggest shopping event of the year. According to the National Retail Federation, total spending for this season is projected to reach $82.8 billion.
In an era of smartphones, it might be assumed that consumers will turn to online shopping for their back-to-school needs. However, the truth is that in-store purchases will more than double compared to online purchases (Deloitte). Additionally, studies indicate that consumers will have less than half of their shopping completed by the end of August, which means the majority of purchases will take place in September.
As consumers flock to their local retail stores this month, business owners need to have adequate coverage in place to protect against potential losses. In a recent retail claim, a customer went to use the restroom, which was just cleaned by an employee. The tile floor area outside of the restroom was still wet, causing the customer to slip and fall, breaking her arm. A $25,000 medical expense was paid to compensate the customer for her ambulance ride and hospital visit.
In another claim example, a fire began at the insured’s store when an employee smoked a cigarette outside and carelessly threw it into the dumpster next to the building. The fire caused $45,000 in building damage and $14,000 in business personal property damage. In order to make the repairs, the store had to shut down for a month, causing an $18,000 loss in income and $12,000 loss in extra expenses to get the store running again.
The Devon Park Specialty Mercantile product could be used to protect business owners against these and other types of claims during this busy shopping season. Our product was designed to accommodate the coverage needs for clothing stores and more than 70 different classes of mercantile business. Furthermore, we can consider new ventures and incidental mixed apartment occupancy.
Our product includes the following features:
- Coverage is available for risks with annual sales up to $10 million
- Policies can be written monoline or as a package
- Ability to consider general liability limits up to $2,000,000/$4,000,000 with no deductibles
- Property values up to $10 million per location
- Hired and non-owned auto coverage is available
- Special Form and replacement cost coverage can be considered for risks that qualify
- Ability to consider off-premises exposures, such as installation and delivery
Please contact your Devon Park Specialty underwriter today for more information about our Mercantile product.
As always, thank you for your support and business.
Contact Cheryl Ryan,
Executive Vice President, Division Leader | 844-438-6775 Ext. 2582
Written by Danielle Conner
September 6, 2018