The Reality of Retail- Real Life Claims and How Business Insurance can Help

The world of retail is fast-paced and varied, with no two days ever the same. With so much going on, it also creates a recipe of risks and opportunities for things to go wrong, something no retailer wants to have to worry about.

From dealing with customers to handling stock, cash and everything in between, no matter how much care you take, accidents and incidents can still happen-and that’s where business insurance comes into play. It provides peace of mind and protection during those times when you need it most.

Let’s delve into some real-life examples of retail businesses that have experienced a claim and how business insurance helped get them back on their feet.

Storm damage

Australia is prone to wild and unpredictable weather, enduring some pretty extreme events like fires, and storms. The impact of a natural disaster can have a devastating effect on your business. For one retailer, a severe storm caused leaking through one of the store windows creating water damage. The window became stained and fogged, causing further damage to contents within the store.

Shoe boxes, the mannequins and clothes and accessories on display were all damaged due to the storm. After assessing the store’s damage, the insurer settled the claim for $11, 650 (excluding GST) for loss of stock and contents including the cabinetry and mannequins under the shop owners Contents Insurance policy. After being damaged by the storm and water, some of the electrical work was also repaired.

Contents insurance* covers your business contents or stock if they were damaged in a fire, storm or due to malicious damage or some other defined event listed in the policy. Contents insurance is an important form of cover for retailers, protecting your vital stock that keeps your tills flowing and your business running!

Stolen goods

One of the unfortunate realities of running a retail business is the risk of pesky thieves getting their hands on your hard-earned stock, something which can happen in any retail business. This was the unlucky case for a service station owner, who had goods and cash stolen from their business by two thieves who broke in through the front door.

The thieves stole cigarettes and $3,800 in cash, kept in the same drawer as the cigarettes. The service station owner lodged a claim under their Theft and Money insurance* covers for $13,000.

Once the claim was verified it was paid by the insurer as per the following:

  • $10,000 (up to the set policy limit) for the stolen cigarettes. These were specifically listed under the insured’s Theft cover; and.
  • $3,068 for the stolen cash which was covered under the Money section of the policy.

Theft cover* can cover your contents and stock from theft, attempted theft or armed hold up. It is not unusual for theft insurance to need 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.

Additional coverage is also available to protect your business’ cash with Money cover*. It is designed to protect your business money (which will include not only cash and cheques but also items such as lottery tickets, gift cards, postal orders and stamps) by providing cover for loss or damage to it whilst on your premises or in transit.

Technical difficulties

Having reliable equipment and machinery is essential to running a retail business, and when they decide to stop working, a whole host of problems can arise. From convenience stores to bakeries, things like your fridges and freezers help you stay in business, and that’s why it is important to also consider insuring them.

For one pizza shop owner, their 2-door freezer was running hot and tripping the power supply at the store. After investigating it was found that the compressor had burnt out and required replacement.

The pizza shop owner had Machinery Breakdown insurance* and the insurer met the cost of repairing the freezer and the loss of stock which came to $1,799, net of the excess paid.

Machinery Breakdown insurance covers the cost to repair or replace specified machinery following a breakdown. Breakdown means unforeseen and sudden physical damage to specified machinery which requires repair or replacement. It’s always important to check your Product Disclosure Statement or policy wording to gain a better understanding of the   types of breakdown which are (and are not) covered by insurance. Non coverages  can relate to things like wear and tear and lack of service of repairing the machinery.

If you would like to receive more information about business insurance or to compare quotes, our BizCover team are only a quick phone call or mouse click away. Experience insurance made easy today, with multiple quotes from some of Australia’s leading insurers delivered to your inbox in minutes.

*As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this web page is general only and should not be relied upon as advice.

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