Retail & Service 1

2 The Retail & Service industry encompasses a wide variety of businesses. This segment includes: Businesses engaged in selling goods Businesses that provide business services Businesses that provide personal services

Retail & Service 3 Examples of Retail & Services businesses are: Furniture StoresFlorists Bicycle ShopsBarber Shops Dry CleanersLawyers DoctorsAccounts

Retail & Service 4 This industry segment has many unique risk exposures that need to be addressed. Some of the common exposures are: General Liability Property Auto Workers Compensation EPLI Business Income Cyber Liability Business Life Benefits

Retail & Service 5 General Liability:Provides coverage for Bodily Injury or Property Damage to a third party How does it apply? Premises: Slips/Trips/Falls Products: Minor exposure, unless you work on insured’s products Operations: Delivery and Installation

Retail & Service 6 Property: Provides coverage for Fire, Theft, Water Damage, Weather, Care, Custody, and Control How does it apply? Premises: Damage to building and/or contents Employee Dishonesty: Loss of money or property caused by an employee’s dishonesty Bailee Coverage: Coverage for customers’ good in your care, custody, and control

Retail & Service 7 Auto: Provides coverage for Bodily Injury or Property Damage to a third party. Can also provide Property Damage coverage to your auto. How does it apply? BI to others: Pays for medical expenses PD to others: Pays for damage to property Comp & Coll: Pays for damage to your covered auto Hired/Non-owned:Pays for damage to autos you lease, hire, or borrow

Retail & Service 8 Workers Compensation:Provides no fault coverage to employees for work related injuries or illnesses. Employees do not need to prove negligence on the part of the employer. How does it apply? Employees: Provides partial and periodic payments to workers with an emphasis on returning the employee to work

Retail & Service 9 EPLI: Protects against exposures such as wrongful termination, discrimination, or suits alleging inequality in pay. How does it apply? Lawsuits by employees: Pays for defense costs and any judgment associated

Retail & Service 10 Retail & Service Business Income: Coverage that provides for loss of income while business operations are suspended after a covered loss. Extra Expense can also be added and will provide coverage for necessary expenses incurred during the period of restoration. How does it apply? Damage to property: Pays for relocating to temporary location in order to continue operations Net Income: Pays net income that would have been earned Normal Expenses: Pays expenses including payroll

Retail & Service 11 Retail & Service Cyber Liability: Provides coverage for Unauthorized Disclosure of Private Information, Regulatory Expenses, and Network Damage. How does it apply? Disclosure of information: Covers actions arising from the violation of any applicable privacy law, internal privacy policy, or security breach law Regulatory Expenses: Costs to notify others if there is a reason to believe a data breach has occurred Network Damage: Pays for damage to your network or ensuing damage or disruption to another’s network

Retail & Service 12 Retail & Service Business Life: A part of any Succession Plan should include Key Man Insurance. Provides coverage to compensate a business for financial loss that would arise from the death or incapacity of a member specified in the policy. How does it apply? Partnerships: Enables partnership interests to be purchased by existing partners Key Employee: Pays losses related to the extended period when a key person is unable to work

Retail & Service 13 Retail & Service Group Benefits: Coverage for Life, Health, Dental, Vision and supplemental insurance How does it apply? Employees: It is an investment in employees. Supports employee retention, satisfaction, and productivity. Employer: Can be used as a recruiting tool

Retail & Service 14 Retail & Service How you address these exposures depends largely on: Your tolerance for risk Safeguards you have in place Your attitude towards insurance Your budget

Retail & Service 15 Retail & Service There are three ways in which a business owner can address these risks. 1. Go Bare – This approach puts the business, the business owner and any employees at risk, due to lack of any plan to handle claims or lawsuits. 2. Self Insurance – A risk management method in which a calculated amount of money is set aside to compensate for the potential future loss. Not practical for most small to medium businesses. 3. Purchase Insurance – This is generally the best approach as you are transferring risk to the carrier. The cost to transfer risk is only a fraction of the coverage provided.

Retail & Service 16 Retail & Service For Retail & Service business there are two policy types typically used. Business Owner’s Policy (BOP) Commercial Package Policy (CPP) Designed for small to medium sized businesses Combines Property and GL into one policy Less than purchasing coverages individually Includes a variety of additional coverages

Retail & Service 17 Retail & Service Business Owner’s Policy (BOP) Designed for small to medium sized businesses Combines Property and GL into one policy Less than purchasing coverages individually Includes a variety of additional coverages

Retail & Service 18 Retail & Service Commercial Package Policy (CPP) Designed for complicated medium sized and large accounts Combines Property and GL into one policy More flexible in the extent of coverage options available Allows for a more tailored approach to coverages

Retail & Service 19 Retail & Service As a business owner, what do you need to consider when purchasing insurance? Which coverages are required by contract. Which additional coverages do you need to purchase. What should your limits be. What company you should place your business with.

Retail & Service 20 Retail & Service One of the most important considerations is choosing an insurance agent. You will want to work with a professional and knowledgeable agent who knows your business. Your agent should be able to assist you with the previous considerations.

Retail & Service 21 Retail & Service Services your agent can provide should include: Comprehensive policy reviews A customized program to fit your business needs Assistance in designing and implementing risk management strategies. Comprehensive proposals from national carriers Excellent customer service Loss control services Claims assistance

Retail & Service 22 Retail & Service Questions?