This bulletin is designed to give retailers a better understanding of some of the risks that they may face and some of the solutions that are available to them.

The downside of technology

With modern technology, it has become very easy for retailers and shop owners to arrange their own insurance online. There are many “packaged” policies that provide apparently generous levels of insurance cover at very competitive rates. However, one reason that they are simple to arrange is that the insurer tends to make a lot of assumptions about the business and the risks being run. This is where the problems can start because whilst these assumptions are listed, let’s face it, many people will at best skim read the list or at worst, ignore it completely, rather like the long terms and conditions. BUT, if a claim is made and the insurer discovers that things are not as they assumed, the business owner could find a claim reduced or even declined altogether.

Some of the things to watch out for:

• Property Construction. Is the property of “standard construction” or have they forgotten to declare that flat roof extension or the timber store used to house some stock?
• Presence of an ATM. These are becoming more common and do affect an insurer’s attitude.
• Does the security REALLY meet the insurer’s minimum standards are they just guessing?
• An assumption that there have been no previous claims or even incidents of damage not claimed for.
• Prior insolvencies, CCJ’s and convictions.
• An assumption that very little or no cash left in the premises overnight.

Some other aspects where retailers can be at greater risk:

• Employing temporary and/or young seasonal staff. It might be tempting to provide them with less training but they are owed the same duty of care. If they are injured, the retailer will have been expected to provide adequate training and supervision.
• Manual Handling. Having documented risk assessments and training logs will help to protect an employer in the event of all too common lifting injuries.
• Ownership or responsibility for the shop front. This can be expensive and may need specific insurance.
• Increased stock levels at peak times of year e.g. holidays or Christmas.

How we can help

For retailers and other businesses in Bromsgrove, Redditch, Worcester and throughout Worcestershire and Warwickshire, we can offer:

• A free no obligation review of current insurance arrangements and a report on possible alternatives.
• Guidance on risk management issues
• Access to independent specialists to assist with electrical, asbestos and Energy Performance surveys.

For more information, please complete an enquiry form HERE, contact us by email at enquiries@apinsurance.co.uk or call 01527 834696.