The retail industry in Australia plays a significant role in the nation’s economy. While retail spans many different types of providers and offerings, retailers often face the many different challenges in their day-to-day operations. In this article, we’ll look at some of the most prevalent retail risks, as well as what you can do to safeguard your company.
1. Injuries to customers
The potential for consumers to suffer an injury while on your business premises is a serious risk that retailers face. If a third-party is hurt, a simple slip might result in a pricey claim. Even if you work from home and have your clients visiting your house for commercial reasons, you are still at risk.
Although precautions such as checking for slippage risks, loose wire, and fall risks on a regular basis and posting warning signs may help reduce the risk, the danger still exists. If a customer sustains an injury or their personal property is damaged on your premises, this is where your Public Liabilty insurance* comes into play, providing some much needed protection.
Theft is a major cause of financial stress for Australian retailers, and it may severely reduce income. To counteract this threat, security tags on merchandise, a security presence in the business, security cameras, and warning signs can all be implemented. Of course, even with these safeguards in place, theft may still be an issue.
You may want to consider protecting your retail business against the threat of thieves with Theft cover*. This option can cover your contents and stock from theft, attempted theft or armed hold up. It is not uncommon for theft insurance to require the item stolen to have been securely stored before the theft and for there to be evidence of forcible entry in the commission of the theft.
3. Unanticipated setbacks
The majority of retail enterprises rely on repeat consumers to generate revenue. So, what would you do if your company was suddenly unable to function? An unforeseen incident, such as substantial damage to your facility, not only does this mean you’ll have to deal with the difficulty of handling repairs, but it also means you won’t be able to run your business normally. While large-scale companies may be better equipped to manage the costs associated with unanticipated setbacks, medium and small retail businesses are frequently harmed when operations are disrupted.
Business interruption insurance* provides cover for the loss of income and increased costs of operating your business caused by a specified insured event (such as property damage or fire). It’s designed to assist your business to recover from an insured event by paying ongoing expenses (such as wages or rent).
4. Breach of data
Retail businesses are becoming more and more liable for private client information in an increasingly digital world. This is particularly the case if you run an online business rather than a physical location. Cybercrime is becoming a major concern for Australian retailers, and it may have catastrophic consequences for your company.
With this in mind, it’s critical that cyber security measures be implemented. To discourage would-be cyber attackers, you need to ensure your internet security and firewalls are all to up to date and in place. If a data breach does occur, Cyber Liability insurance* may be able to provide financial protection against the consequences of the loss. The related expenses might include third-party responsibility, data recovery or replacement, crisis management, and revenue loss.
5. Injuries to employees
It’s not just your consumers who need to be considered when it comes to workplace injuries. Employees are also at danger of injury, which might have a financial impact on your company. Take the time to create an occupational health and safety policy and make sure your employees are aware of the company’s safety standards. Follow up with practical steps like warning signs, protective equipment, and staff training, if necessary.
6. Loss of property
You can’t control the environment, and natural disasters may have a huge impact on businesses. During harsh weather, retail establishments may be destroyed, and goods in warehouses may be disrupted. Storms can cause power outages, which can have a negative impact on food sellers if rotten food occurs.
This is where protecting your business property (if you own it) and your valuable business assets becomes vital. Building insurance* covers your building if it is damaged as a result of a fire, storm, malicious activity or another defined event listed in the policy.
Contents insurance* provides cover for loss of or damage to items such as business equipment, stock, plant and machinery, records and furniture belonging to you at the insured location.
7. Not having insurance
One of the other risks many retailers face is not having the right insurance or even any insurance in place to safeguard their business. This is a risk where a costly claim could be enough to close your retail business doors for good, something no small business owner wants to be faced with,.
At BizCover, we provide multiple quotes from some of Australia’s most trusted insurers in the click of a mouse, so you can get the protection your business deserves without the hassle of shopping around. Get a quote and experience insurance made easy today.