Essential Insurance
For Retailers
Retail business
insurance has never been so essential. The troubled economic times have
had wide reaching effects for everyone around the world and arguably one
of the hardest hit areas has been the retail industry. In the United
Kingdom estimates indicate that downsizing and reorganization will
continue including major retailers like the Gap all the way to local
small businesses. What this essentially means is that in order to save
the most money, stores are closing and outlets are consolidating or
liquidating. In the quest to save the maximum amount money possible,
some retailers have opted to reduce coverage to the legal minimum. While
in the short term you may save a few payments, without protection you
leave yourself exposed to a multitude of financial pitfalls.
Retail business has many distinguishing aspects that separate it from
other areas of business. Dealing directly with the public on a regular
basis, point of sale issues with equipment or networks and illness
quickly spreading among employees and customers are actually some of the
key risk factors that affect business insurance in the retail industry.
Many different types of coverage apply in the retail industry and with
all the legal terms and insurance jargon, they can quickly overwhelm
even a seasoned owner or operator. In compliance with UK law, you must
carry a minimum amount of employer's liability insurance and almost all
businesses carry additional public liability coverage. Along with these
two, most businesses also need supplemental cover for property and
securities to cover things like fires, floods and extreme weather.
When it comes the retail
industry in the United Kingdom studies have shown that it is the
everyday activities that cause the most problems for small businesses
and retail outlets. While extreme weather and fires are very common
claims, customer interactions can lead to just as many. When daily
interaction with the public is involved the risks are much greater due
to the fact that you have so many individuals that can become injured or
ill in the course of your day to day operations. Customers falling,
hurting themselves retrieving items and in the case of restaurants food
poisoning, food borne illness and even burns from hot food all have to
be taken into consideration. All of this is reflected in the public
liability insurance policies for retailers.
One of the best things a retailer or any small business owner can do for
themselves to become active in identifying your risks. It is not
surprising that the different types of coverage are not out on coffee
tables and in waiting rooms all across Great Britain, it is not the most
popular subject. This is why most retailers do not fully understand
their coverage or what is actually covered. Every retailer needs to be
aware of what their particular risks are, and actively pursue ways to
protect yourself from them. Sometimes it may be as simple as going over
your protection with your insurer. Other situations may require risk
assessments, additional protection like business interruption coverage
or even restructuring of your business to eliminate things like high
risk products or situations.
There are many resources all across the UK that can assist you in
assessing your situation and implementing a solid protection plan. The
two most important things when dealing with any type of business
insurance in the United Kingdom are compliance with all insurance laws
and using an authorised insurance provider. Failing to carry the
required minimum can lead to fines or worse, and you should always make
sure your retail business insurer is authorised to issue cover in the UK
by checking the provider's number with the Financial Services Authority
(FSA) register.
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