Protecting Your Retail Space & Inventory This Winter
Running a retail business means planning for the day-to-day – opening doors, serving customers, managing inventory, and keeping operations running smoothly. Is your business prepared for the unexpected?
Understanding Retail Property Exposure
Property exposure refers to the risk of physical loss or damage to your building, its contents, and inventory. For retail businesses, this exposure is especially important because your location and merchandise are crucial to your ability to operate.
Unpredictable events such as fires, theft, and severe weather can have an immediate and costly impact on a business. Even a relatively small loss can disrupt operations.
Protecting Your Inventory
For many retailers, inventory is their largest investment and is sometimes overlooked when thinking about protection.
Consider these inventory risks:
- Seasonal stock stored in back rooms or off-site locations
- Increased inventory levels ahead of sales or promotions
- Specialty items that are harder to replace
- Goods damaged by water, smoke, or power outages due to inclement weather, burst pipes, or fire
If inventory limits haven’t been reviewed recently, a loss could leave a gap between what’s damaged and what’s covered.
Reviewing Your Risks This Winter
Cold weather brings unique challenges for retail businesses. Winter-related losses are a common source of retail property claims.
Some examples include:
- Frozen pipes leading to water damage
- Roof stress from heavy snow or ice buildup
- Slips or falls caused by melting snow tracked into the store
- Power outages that impact lighting, security systems, or temperature-sensitive inventory
It’s important to take preventative measures to protect your inventory and mitigate loss. Here are some steps you should take this winter to reduce risk and stress if something does go wrong:
- Walk through your store and storage areas. Take note of inventory levels and storage locations.
- Keep up with regular heating, plumbing, and roof maintenance.
- Update emergency contacts and review your emergency response plans.
These precautionary actions not only support safer operations, but they also make insurance conversations easier in the event of an unexpected loss.
The Role of Your Insurance in Protecting Retail Property
When the unexpected does happen, insurance is there to help retailers recover!
An independent insurance agent can help you review your property risks and make sure your coverage reflects how your business operates today. Remember that your coverage only works well when it reflects the realities of your business. Communicate with your agent to ensure you have the protection you need for your business.
Consider questions should as: Has my inventory increased recently? Has my store changed since the last time I reviewed my policy with my agent? Do I store merchandise anywhere besides my main location? What would happen if the business needed to close for a week due to damage?
Work with your independent agent to ensure coverage aligns with your business – current replacement costs, inventory limits that align with peak stock levels, and protection from lost income, for example.
Preparing for the Year Ahead
While we can’t entirely prevent the unexpected, we can plan for it. This winter, take the time to review property risks at your business and chat with your independent insurance agent to make sure your protection aligns with your needs.
Exploring your commercial insurance options? Use our Find An Agent tool to locate an independent insurance agent near you!
