As an insurance agent covering the retail industry, it’s essential to understand the most significant potential threats facing this industry’s future. Retail risk management is critical to protecting any business, whether it’s e-commerce or a brick-and-mortar. However, your clients may not be sure where to start or what they need to do to protect their company in case of an emergency, especially since some of the risks associated with retail seem unpredictable. The good news is, a robust retail risk management strategy can help avoid potential dangers from the get-go, preventing possible liabilities or other insurance-related issues.
Here are a few of the top threats to be aware of and what your retail clients can do to prevent them.
Theft of Merchandise
One of the most common concerns for retail owners is the theft of merchandise. Shoplifters can cost the industry collective billions per year, resulting in lost money and the expense of replacing the stolen goods. Fortunately, retail owners can take a few steps to prevent theft, including:
- Installing security cameras
- Locking display cases
- Installing alert systems at the doors
- Putting sensors on tags
If a retailer needs more protection, they may want to look into specific inventory insurance to cover theft and other loss types. In many cases, this type of insurance is available tailored to specific industries.
Damage to Inventory
When natural disasters or severe weather events occur, serious damage to inventory can sometimes take place as well. This is the case for e-commerce stores and physical locations alike. Retail owners should be aware that damage can range from harmed physical structures to power outages resulting in foods spoiling to items being ruined by water and more. One part of a strong risk management strategy that can help offset these damages includes customized commercial property insurance. In some cases, general retail policies may cover some inventory damage as well.
Finally, once-rare data breaches or digital theft have unfortunately become increasingly common due to the prevalence of technology and more customers than ever before choosing to shop online. Online shopping fraud can occur when scams target credit card information, business servers, or organizational systems. Retail owners can look out for phishing scams. Still, it’s also important to avoid data breaches by replacing outdated security software and potentially even hiring specialists to keep an eye on the company’s cybersecurity. In some cases, cyber liability insurance can help protect a company when data breaches occur.
When you’re an insurance agent counseling retail clients about risk management, understanding some of the industry’s biggest threats is key. Whether your clients are concerned about data breaches, theft or another potential problem, preparedness and a solid risk management strategy can help put them in the best possible position. Keep these facts in mind as you counsel them, and you can help your clients run successful retail businesses while avoiding an insurance fiasco.
Formed in 2013, AmSuisse, Inc. has quickly distinguished itself as a wholesale operation that specializes in working very closely with our agents and broker partners to develop responsive, individualized service for each client. Our unparalleled writing support, industry-specific expertise, marketing support, responsive proposals and quotes, strong customer service, and strong relationships with our carrier partners have all helped us to provide the best possible coverage for our clients. To learn more about our available coverage, contact us today at (855) 912-8697 to speak with one of our representatives.