Avoiding 4 Common Retail Business Insurance Claims


The issues faced by retail business owners, such as shoplifting, staff theft, weather, and fire damage, and cybersecurity breaches, can have a considerable negative impact on their bottom lines.

Here we will discuss some of the insurance claims that restaurant and retail business owners submit most frequently, along with solutions for avoiding them.

Shoplifting and Retail theft

According to the National Retail Federation, organized retail crime, shoplifting, and staff theft are all on the rise in the retail sector.

Additionally, a rise in robbery might hurt your business’s bottom line.

More than $60 billion is lost by retail businesses every year due to theft, fraud, and other retail “shrink.”

Even though you might not be able to stop every theft at your company, you can take steps to lower your risk.

  • Some burglars prefer to steal throughout the night. Install security systems, building alarms, and exterior floodlights to deter break-ins.
  • Install a bell that rings whenever someone enters the building so thieves won’t try to enter covertly to steal when you’re not at the front of the store.
  • Create a retail inventory control system to monitor the number of goods you receive and to spot missing products immediately.
  • Put electronic tags on all your goods so that if someone tries to leave the store without the label being taken off, it will sound like an alert.
  • High-value objects should be kept behind the counter, making them harder to steal.

Fire and weather damage

Everyone who owns or leases retail space runs the risk of the structure and its contents being damaged by extreme weather or fire.

According to the National Fire Protection Association, fire departments in the United States respond to 13,570 fires at retail stores and other commercial premises (e.g., salons, dry cleaning shops, etc.) per year. These retail claims are expensive, resulting in almost $60 million in property damage.

Here are some pointers to assist you in avoiding fire and extreme weather damage in your business.

  • Check your property regularly, including the electrical system, and do any necessary maintenance.
  • Winterize the building to prevent pipes from freezing during the colder months.
  • Check that your fire extinguishers and fire alarms are in good working order.
  • Setup a sprinklers, especially in storage facilities and stock rooms where flammable items may be stored.

Trips, fall, and slip.

To limit the risk of harm:

  • Do regular walkthroughs to verify that items are put away and that walkways are not cluttered.
  • Make a checklist for each retail section that includes everything your staff must do to keep it in good condition.
  • Assign particular periods of the day to personnel in charge of cleaning up.

Every time they complete picking up, have them sign the checklist. Then, if an employee or a customer is injured, you have evidence that you made proactive efforts to help prevent slips and falls.

General liability insurance, sometimes known as “slip and fall” insurance, can assist protect your business if you are accused of injuring or damaging a customer’s property.

Products liability

Although purposely selling someone damaged goods is never a good idea, it can happen. And when it happens, there is a chance that it will result in injuries and property damage.

Working with reliable vendors whose products you can rely on will lower your risk of product liability lawsuits. Verify the quality of the products you frequently sell by inspecting them. And stay informed about product recalls and avoid accidentally dealing with someone with a recalled item.


So, these are the most common Retail Business Insurance Claims that should be avoided while continuing with the business. However, if somehow any mishap occurs, there are insurance policies that cover all of these situations.