Warehouse clubs and supercenters provide consumers with a no-frills shopping experience that can afford them large savings. Because of the enormous cost benefit of buying in bulk while shopping in these stores, they have grown in popularity since the start of the great recession. If you own a supercenter or warehouse club, you will want to be sure to protect your business finances with a solid business insurance package. Independent insurance agents can help you create a superstore insurance policy portfolio that protects your business from its various exposures.
2014 Warehouse Clubs and Supercenters, Industry Facts From IBISWorld
- There are currently 25 warehouse club and supercenter chains operating in the United States.
- These stores employ more than 1,447,000 people.
- The warehouse club and supercenter industry generates about $449 billion in revenue each year.
Protect Your Supercenter’s Property With the Right Insurance
Supercenters are stocked with a large amount of merchandise and other business property. It is important that this property be properly insured against loss or damage. Some property coverage types your independent insurance agent will discuss with you include:
- Building insurance: If your business owns the building in which your supercenter is located, you will need to purchase coverage against damage to the structure of the building with a sufficient amount of building insurance.
- Property insurance: This covers the business-owned property inside your supercenter against such hazards as severe weather, fire and vandalism. Covered property includes your inventory, computer systems, cash registers, shelving, display units, shopping carts and light fixtures.
- Boiler and machinery insurance: This covers the heating and cooling systems and the machinery used by your business. For example, many supercenters include a frozen foods section that requires the use of freezers. If these appliances should fail, boiler and machinery insurance would provide compensation to enable you to fix or replace the machinery. Built into this coverage, you can also get spoilage insurance, which provides compensation for food that goes bad because of a freezer or refrigeration failure.
- Flood insurance: Flood damage coverage is specifically excluded in nearly all business insurance policies. Floodwaters can cause significant and very expensive damage, so you may want to consider supplementing your business coverage with a commercial flood insurance policy through the NFIP (National Flood Insurance Program).
- Earthquake insurance: Earthquake damage is also excluded from coverage by nearly all commercial insurance policies. If your supercenter is at risk, you may want to purchase an earthquake insurance policy to supplement your coverage.
- Crime insurance: Crime insurance shields your superstore from losses associated with robberies and other crimes. You can choose from among very specific crime coverage types to insure your business against the crime risks faced both inside your store and off-premises, such while carrying cash to the bank for a deposit. You can also cover your supercenter against crimes committed by employees while on the job, such as theft and embezzlement, through an employee dishonesty insurance policy.
Liability Insurance Can Shield Your Superstore From Expensive Lawsuits
Lawsuits can prove very expensive for your superstore. Liability insurance coverage is therefore crucial to the health of your business. This insurance protects your supercenter by covering your associated legal defense fees, court costs and financial damages. There are a number of different types of liability insurance available to you, including:
- Commercial general liability insurance (CGL): This is the standard liability coverage that is included with nearly all business insurance policies. It includes premises liability insurance, which protects your store against lawsuits stemming from injuries or property damage suffered by third-parties while they are on your supercenter’s property; product liability insurance, which protects your store against lawsuits stemming from injuries or property damage caused by faulty or defective products sold in or promoted by your store; advertising liability insurance, which protects your supercenter against claims of copyright or trademark infringement for the purposes of promoting a product or service; and personal injury liability insurance, which shields your business from lawsuits claiming injuries caused by libel and slander.
- Professional liability insurance: If your supercenter offers services such as a pharmacy, vision center or automotive services center, you will want to ensure that you have the proper types of professional liability insurance to protect your business from lawsuits stemming from damage caused by mistakes, negligence or improper advice. Your independent insurance agent can help.
- Employment practices liability insurance: This provides coverage if an employee accuses your supercenter of engaging in any number of illegal business practices, such as wrongful termination, breach of contract, harassment or discrimination.
- Auto liability insurance: Your superstore likely owns a fleet of vehicles for product deliveries to and from your store. If so, you will be required by law to cover them with commercial auto insurance. Additionally, if your employees occasionally use their personally owned vehicles to do work-related business, you may want to shield your business from potential liability charges by purchasing hired or non-owned vehicle liability coverage.
- Cyber liability insurance: Many shoppers at supercenters pay for their purchases with debit cards or accepted credit cards. Sophisticated hackers may find ways to breach your security protocols and obtain customer information, including card and PIN numbers, which they can then use to steal funds or perpetrate identity theft. If this happens, the resulting lawsuit against your business can be costly. Fortunately, cyber liability insurance can provide you with a measure of protection against significant financial losses.
- Umbrella insurance: There is a limit to how much liability coverage you can obtain through your insurance company. If you feel that you need more liability protection than your policy affords, you can purchase an umbrella insurance policy. Umbrella insurance picks up where your primary liability coverage leaves off and provides a relatively inexpensive way to significantly raise your coverage limits.
What Other Superstore Insurance Coverage Do You Need?
There are more insurance coverage types that you may want to discuss with your insurance agent as you are building your policy portfolio. These include:
- Business income insurance: This provides your supercenter with a continuation of income if a covered disaster should force you to temporarily close shop while repairs are made. This continued income enables you to continue to pay employee salaries and monthly expenses.
- Workers’ compensation insurance: Supercenters employ many people, and this increases the risk of work-related injuries. Workers’ compensation insurance, which is required in most states, provides coverage for required medical treatment, paid time off and other financial losses associated with injuries sustained by employees while on the job.
- Health insurance: The Affordable Care Act requires employers with at least 50 full-time employees to provide their workers with subsidized health insurance coverage. An independent insurance agent can help you review your healthcare coverage options.
- Life insurance: Whether you want to include life insurance as part of your employees’ benefits packages or you wish to obtain life insurance coverage for the principal partners in your business, your independent insurance agent can obtain and explain a number of options.
Talk with your independent insurance agent about the various components of your business operations. Your agent can then make coverage and policy recommendations that are suitable for your supercenter.
An Independent Agent Can Help You Find Superstore Insurance
Shopping for a commercial insurance coverage for your supercenter can be a complex process, but it doesn’t have to be. Make things easy on yourself by working with an independent agent in the Trusted Choice® network. These agents can assist you in several ways, from identifying your various exposures, to recommending the appropriate coverage, to shopping around for competitively priced policies. Find a Trusted Choice agent near your to discuss your business insurance needs, and discover how stress free shopping for superstore insurance can actually be.