Retail Trading Industry
What type of insurance cover is needed for bottle shops, hairdressers, supermarkets, shopping arcades, beauticians, electrical goods stores, jewellers, florists, greengrocers, furniture shops, hardware stores, newsagencies, and video stores?
The retail industry deals primarily with the public, so public liability insurance is a ‘must have.’ Coverage for robbery and theft is also extremely important in small retail businesses, as is fire insurance and insurance for glass and signs.
Public Liability insurance for the retail industry
Public liability insurance covers you and your business in the event that you are found liable for causing loss, injury and/or damage to a third party (ie the public). In the retail industry where you are constantly dealing with the public, this is extremely important.
Robbery and theft cover in the retail industry
One of the most worrying aspects of owning a small business such as a service station, pharmacy, bottle shop, newsagent, fast food outlet, video shop or small department store is the risk of theft, in particular aggravated or violent robbery.
You should not only insure your business against robbery and theft, but there are a number of strategies you can use to help prevent it.
Workcover NSW suggests the following tactics to try and prevent a robbery or violent incident:
- Be committed – employers have a duty of care to create a workplace environement that is safe
- Be prepared – this includes implementing safer working practices and electronic security where appropriate
- Implement good training and supervision processes, including emergency procedures, and establishing staff procedures in the event of a violent robbery.
- Monitor and review your strategies on a regular basis.
Hidden costs of theft and robbery
Some small retail business owners avoid following the advice above because they feel it is too expensive to implement a comprehensive plan for theft and robbery. However, there are a number of hidden costs involved, beyond the obvious loss of the property that is stolen:
- Staffing costs – if an employee has been physically or emotionally injured or traumatised as a result of a violent robbery then they may require medical treatment or counselling, and may be unable to work for some time.
- Increased workers’ compensation costs – if a violent robbery results in a workers’ compensation claim, your workers’ compensation premium may be increased.
- Increased theft insurance premiums – likewise, if you are robbed a number of times your insurance premium may increase.
- Loss of staff – staff who are afraid of robbery may leave the business.
- Loss of customers – likewise, if customers are concerned about lack of security in your business then they may stay clear.
Considering these extra costs, it makes sense to both take out theft insurance and focus on strategies to reduce the risk of your business being robbed.