Supermarkets are the backbone of society when it comes to supplying customers within the community with foods, household necessities, and sometimes even luxury items. These big establishments are booming and growing fast. However, this does not mean that they are immune to losing money to claims which could be easily minimised through supermarket insurance.
The annual revenue of some of Britain’s leading supermarkets exceeded £32 billion last year. Still, for this large sum to be sustained, it is necessary to obtain a complete insurance policy as a safety net to protect against accidents that could be detrimental to large businesses. Compensation costs towards persons who have been victims of an accident can be monumental, and similarly, the expenses concerned with the building and stocks are incredibly high.
Types of Supermarket Insurance
Supermarkets can benefit from a variety of covers to gain security.
Public liability insurance
Public liability insurance comes to protect against claims that a person was injured due to the services of the supermarket or their property was damaged as a result. Depending on the size of the establishment, hundreds to thousands of people may enter daily, and the proper measures should be taken to ensure that they are not hurt.
This could include putting ‘wet floor’ signs up immediately after mopping, checking that shelves are regular daily, checking that food sold is edible and before its expiry date, and any other preventative tactics. Even so, accidents could happen, resulting in the supermarket being sued. Therefore, the insurance payout would significantly reduce the costs of the legal fees and compensation costs the company would typically endure.
Due to the high number of customers that shop at supermarkets compared to smaller shops and convenience stores, it is of greater importance to obtain this cover due to the higher risk of claims.
Stock insurance is especially recommended for shops because they often hold numerous stocks, turning a profit. If something were to happen to this stock, the supermarket would no longer operate, which leaves no other option than to temporarily close until the items are replaced, losing copious amounts of money and portraying themselves in a negative light. This would take a hit on their reputation in the future because of their unreliability and failure to provide fast alternatives.
For example, if a supermarket were to suffer from a flood that ruined the majority of their perishable produce and affected the efficiency of the electronic products sold, they would no longer be able to sell them. New items to replace the damaged goods would have to be ordered immediately, but when factoring in the costs to do this and the time it would take for them to arrive, this could be fatal.
On the other hand, having insurance and filing a claim would save lots of money in terms of replacing the products, so that time is not lost in finding the funds to do this.
Buildings insurance is equally imperative. A supermarket needs a premise in which they run, and so this cover is significant in preventing the money loss associated with rebuilding an establishment from scratch. The quotes for such a cover can vary massively, as they are based on the size of the building, the location, the claims history and other factors which influence the overall cost of rebuilding.
Events typically covered by every insurer include fires, floods, storms, vandalism, earthquakes and explosions. As long as the claim is filed immediately after the disaster, the inspectors can evaluate the damage, and money can be issued right away things return to normal. Whether the damage is partial or the whole infrastructure is destroyed, buildings insurance covers both circumstances. The more significant the damage, the longer it may take to evaluate the claim.
Employers’ liability insurance
Lastly, employers’ liability insurance is a legal requirement enforced by the United Kingdom government for all supermarkets because they hire more than one employee. This cover applies to all workers, including those working at tills, those managing stock in the back, the cleaners, directors, and any other persons involved in the supermarket that earn a wage from them.
This insurance type protects the staff if they are harmed due to a work-related accident, whether this is an injury sustained from being hit by a shelf to more serious long-term health implications like back problems from sitting at a till for too long.
In conclusion, supermarkets are profitable businesses with various job opportunities and are beneficial to the customers. Pairing this with insurance, the revenue can skyrocket as the insurer can take care of the compensation regarding claims so that profit can be used to improve the company instead.
Find out more about the importance of insurance here.
Other useful links about Business Insurance:
Zurich Business Insurance
Lifestyle Consultant Insurance
Remember to Compare Your Business Costs is here to help your business every step of the way from business advice, or saving you time and money on your business purchases such as: