The retail industry has undergone a major transformation in recent years, with several big-box stores closing shop, downsizing or opting for an online-only presence. Yet while the financial outlook is encouraging, there may be significant risk right around the corner. If you own a retail business, you should also be aware of other hazards that may not be on your radar

Commercial property insurance

How do you protect your business against the financial damage that could result from vandalism, fires, severe weather or natural disasters? Commercial property insurance is the answer.

This type of policy can help pay for the repair or replacement of covered items, such as:

  • Office, manufacturing or processing equipment
  • Inventory
  • Fencing and landscaping
  • Company documents and signs
  • Satellite dishes

However, commercial property insurance doesn’t typically cover damage caused by earthquakes or flooding, unless those events are added to your insurance policy.

Income after a disaster

Let’s say your business suffers damage after a disaster and you have to close your facility or rebuild. Howdo you pay your employees or yourself? Business interruption insurance (also known as business incomeinsurance) can replace lost net income or pay for ongoing expenses, including payroll or the mortgage, as well as relocation expenses, if necessary.

General liability

What if a shelf collapses, a ladder falls or a loose wire causes injury to one of your customers? Can you afford a liability claim against your business? With business general liability insurance in place, you’re well protected against the potential high cost of customer claims.

It’s also wise to include cyber liability as part of your insurance package. If your computer system is hacked and customer data is compromised, you’re protected against the cost of claims and forensic assistance in recovering the stolen data.

Employee activity

Could your employees ever become a liability to your business? Employee theft happens more frequently than you may think. Business crime insurance covers losses stemming from employee robbery, fraud, forgery or theft.

Understand business-specific coverage

Your insurance broker is a valuable resource in understanding how to secure your retail business andtailoring your coverage to suit your specific needs.

This content is for informational purposes only and not for the purpose of providing, financial, medical or legal advice. Youshould contact your attorney, doctor, broker or advisor to obtain advice with respect to any particular issue or problem.