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Most Common Types of Claims Facing Retailers


Operating any size business whether it be a small local shop to a large retailer can be costly. Your business could end up having to close its doors as a result of having to pay out the cost of an insurance claim. As a retailer it is essential to both be aware and prepare for the biggest types of insurance claims facing your industry.

Insurance claims can cost any size business upwards of millions of dollars (depending on the type of claim). As a retailer, it is critical that you are aware of the most common types of claims facing your industry. Being aware of these types of claims will allow you to build a comprehensive risk management plan that protects your business.

What kind of claims should retailers be prepared for?

Property Loss Claims

Theft - Physical items being stolen from your possesion. It is estimated that 33% of shoplifting crimes are committed by employees.

Vandalism - Having physical property deliberately damaged by an individual(s). 

Storm/Fire damage - Property being damaged as a result of a fire or natural disaster such as floods and wind storms. Small businesses are at high risk of being impacted by fire or natural disaster due to the majority of their assets being held in one location.

General Liability Claims

Slips, trips, and falls -  Having a customer or employee injure themselves on your business premises due to your organization's negligence. This can result in serious, life altering injuries. If your business is found to be negligent and responsible, settlements and legal fees can quickly add up and have the potential to ruin your reputation and derail your operations. This is the most common and costly type of claim faced by retailers.

Product liability - A customer being injured as a result of using your product, such as failing to provide proper use instructions and choking hazards on a toy. In 2014, a product defect in General Motors cars led to 13 deaths and multiple injuries. The company had to open a $400 million dollar fund for deaths and injuries caused by its vehicles.

Motor vehicle accidents - This can occur from an employee being injured, injuring someone else or causing damage to a 3rd party's property in a motor vehicle accident during hours of employment. In many instances, an employer can be held liable when an employee is involved in a vehicle collision while working under the supervision of their employer.

Property claims result in your business suffering a loss against any type of owned property. The majority of such losses have strong potential to dramatically impact your business operations. General liability claims arise from a third party suffering a loss as a result of doing business with your organization or visiting your premises. Your organization should have rules and procedures in place to ensure your business, employees, and customers are protected to the best of your business' abilities.

Follow the link here to learn more about how to reduce the frequency and severity of liability claims.








Topics: Retail Claims Retail Risk Claims Management Retail Claims Management