4 Coverages You Probably Don't Have But Should Consider

When it comes to insurance for a retail business, there are several coverages—like liability and property coverage— that immediately come to mind. For a retailer, these coverages make sense, but once you look deeper, there are other risks that retailers face and additional coverages that should be considered.  Independent retail business owners may feel certain risks don’t apply since their business is too small. In some cases, the business owner may be completely unaware their business might not be covered. 

Here are four commonly overlooked coverages that retailers should consider.

#1: Cyber Security Coverage

Because cyberattacks against large retail businesses make headlines more often, small merchants or businesses that don’t do online sales mistakenly think they aren’t at risk. However, retailers of all sizes and types are at risk of cybercrime. In fact, 73% of small businesses reported a security breach within the last year.

Cyber security insurance typically packages cyber liability and data breach coverage. Cyber liability coverage pays if you’re liable for unintentionally spreading malware. Data breach provides coverage to respond to accidental loss or release of customers’ personal and identifying information.

#2: Peak Season Coverage

Many retail businesses experience peak seasons—times when they may carry more than the average amount of stock for their business. Greenhouses and nurseries stock up before prime planting months, and many retailers increase inventories before holidays.

It’s easy to overlook those temporary spikes when setting a limit of insurance on your property policy. Peak season coverage increases the limit of your business personal property during those times, without needing to carry a higher limit all year.

#3: Business Income and Extra Expense

After a fire, windstorm, or other property loss, the immediate focus is on repairing buildings and replacing lost inventory. However, until those repairs are made, and customers start coming back in the door, retailers may also suffer loss of income, which is not normally covered by a basic business property policy.

Business income coverage helps bridge the gap, and extra expense coverage pays for additional costs needed to resume operations. If a covered loss happens during a peak season, business income coverage is particularly important.

#4: Employee Dishonesty

You take care to hire good people, but the unfortunate fact is every business faces the risk of employee crime. Statistics show that 75% of all employees steal at least once, including cash, merchandise, and business property.  Employee theft costs US businesses up to $50 billion a year. 

Employee dishonesty coverage protects you against employee theft of money, securities, or property. Even if you only hire friends and family, it’s worth putting this coverage in place for peace of mind.