How to save money on retail insurance

So you have a retail store and you are looking for a way to save money on insurance. Here are some of the criteria that will be considered by an insurance company underwriter when they are determining how much to charge you for your business insurance policy.

1. Determine an accurate amount for contents. In doing this calculation also include your fixtures, equipment and furniture. Stock includes materials in process, finished goods and raw materials.

2. How flammable or perishable is the merchandise, racks or the shelves? Have you considered the fire suppression system functionality when setting up the displays? Longitudinal in-rack sprinklers are often effective in displays.

3. How do you display the merchandise? Is there adequate aisle access for the customers? Do you have a Slip and Fall program in place?

4. What have you added or improved to the interior and/or exterior of the premises to house this merchandise?

5. How often is the premises cleaned and is it done by professional cleaners?

6. How do you dispose of empty cardboard boxes? Is the garbage or debris constricting fire department access?

7. What quality is the interior decor? Is the wall coverings, decorations, carpets or rugs flammable?

8. Is cleaning materials or flammable liquids stored in a well-ventilated and enclosed area? Is it kept well away from the merchandise?

9. Is the stock valued under Last In, First Out (LIFO) or First In, First Out (FIFO)? What stock is obsolete?

10. Is there a seasonal consideration - a garden shop will have higher values in the summer versus a snowmobile shop which will have higher winter values. Consider stock fluctuations and insure for the highest amount that you will have on hand.

11. Stock in transit may require separate coverage. Check that your limit is adequate.

12. How readily available is replacement equipment - is it high-tech, only available outside Canada or can temporary equipment be used?

13. Is the staff trained for an emergency situation? Is there emergency lighting with sufficient space in the aisles for evacuation?

14. Is staff circulating in the store, tidying the shelves and maintaining accessibility of the merchandise?

15. What type of security system do you have? Is it tested on a regular basis? Is there any gaps such as ceiling access through an air conditioning system?

16. Has a cash management system been set up? Some of the considerations would include frequency of deposits, storage of cash on hand in a secure area and employee theft.

17. What is the fire detection and suppression system? Is there smoke detectors and an overhead sprinkler system? If stock is susceptible to water damage then water detector alarms should be considered.

18. Corporate policies and training regarding shoplifting customers should be addressed in an employee handbook. Other topics would include housekeeping, security and emergencies should be included and reviewed with the employees.

Talk to your agent or broker about what steps you have taken to make your business more attractive to the insurance company. No claims means higher profits. Take control of your insurance.