Owning and operating a retail store can be a fulfilling experience. Years of hard work, risk-taking and financial investments have allowed you to turn your dreams of opening a store of your own into a reality. However, many business owners don’t realize how many exposures they must address to keep their business operating smoothly.
Depending on the specific type of store you manage, there are a number of exposures to consider, including risks related to property and merchandise damage, general and product liability, crime and business continuity.
The list below provides an overview of these retail industry risks and more—helping you identify potential blind spots in your risk management and insurance programs:
Product Liability:Your customers expect you to have safe and reliable products, and failing to meet these expectations can lead to huge financial losses. If one of the products you sell harms a customer in any way, they can sue your business, leading to costly legal fees and settlements.
Continuity is critical in business, and there are few things more important than continuous revenue and cash flow, particularly for small to medium-sized organizations. In fact, just one brief business interruption can be incredibly costly for a retail store, often leading to serious reputational damages or long-term closures.
Common interruptions for retail operations can include natural disasters, fires, product recalls, cyber events, staff shortages and supplier issues.
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This list is not exhaustive, and assessing your company's exposures and taking the appropriate precautions can go a long way toward protecting your retail industry business.
Download our “Common Exposures for Retail Operations” guide for an in-depth list of more ways to minimize gaps in your risk management: