From industry giants to small local businesses, the Australian supermarket and grocery industry is highly competitive with a total market value of over $100 billion. There are a number of risks that you face in the supermarket business and, no matter how careful you are with your safety practices, you could easily find yourself at the receiving end of a claim. Supermarket insurance forms an essential part of your risk management strategy and ensures that your risk exposures are covered financially in the event of the unexpected. Today, we take a closer look at the risks that Australian supermarkets need to be aware of in 2020.
What are the risks for supermarkets?
As with any premises, there is always the risk of customer injury in your supermarket. Something as simple as a customer slipping and falling in the supermarket could result in a costly claim. Staff should be well trained on how to manage spilled liquids or dropped food and the aisles should be checked regularly for hazards. Should a customer injury occur, this will be covered by your public liability insurance.
Issues with the equipment can have a significant impact on the functioning of your supermarket. For example, a malfunctioning fridge or freezer could have significant ramifications when it comes to the food spoiling. Many supermarkets also need to consider the equipment they use for loading and unloading stock. Ensure that equipment is serviced regularly to avoid breakdowns. In the event of an unexpected breakdown, machinery breakdown insurance will prove useful.
Food quality issues
For supermarkets who sell food products, food quality issues are undoubtedly one of the biggest risks. This is particularly the case if you provide high risk foods such as deli meats, pre-prepared fresh take away items and seafood. To avoid tainted food, ensure that stringent quality control measures are in place and pay attention to issues such as appropriate storage temperatures, use-by dates and food handling procedures. Product liability insurance is an essential form of cover for supermarkets should an issue arise with the food products which are sold.
Fire, theft and damage
These are common risks that face most retail businesses. Supermarkets can be targets of crime and there is the ongoing threat of theft. Ensure that you have security measures in place to avoid such activity and invest in equipment such as security cameras. Fire and damage can occur both accidentally and as the result of criminal activity – make sure that staff are well trained as to how to deal with unexpected situations such as this and ensure that equipment such as fire extinguishers are easily accessible. Insurance policies such as theft and property damage cover and glass cover will help protect against the costs associated with events such as fire, theft and damage.
Workers compensation claims
When it comes to the risk of injury, it’s not only your customers that you need to consider. There is also the risk of workplace accidents resulting in injury to your employees. To avoid workplace injuries in place, ensure that your staff are well trained in occupational health and safety procedures and review these on a regular basis. If you have employees working for you, you will need to have compulsory workers compensation insurance in place.
What level of cover do you need?
The level of supermarket insurance that you require will depend on a number of factors such as the size of your business, the number of employees that you have, whether your rent or own your business premises, the value of the property insured, and the location of your business. Your insurance broker will be able to offer specific information as to the level of cover you require depending on your situation. When it comes to your supermarket insurance, the main forms of cover you can expect include:
- Property Insurance (building, contents and stock)
- Public and Product Liability
- Machinery Breakdown
- Theft and Property Damage
- Workers Compensation
- Cyber Insurance
- Business Interruption
- Glass Cover
- Commercial Property
- Electronic Equipment
GSK Insurance Brokers have significant experience in the provision of supermarket insurance and will work with your business to ensure adequate risk coverage.
Protecting your future
At GSK Insurance Brokers, we place the interests of your business first. Our experienced brokers will take the time to understand your business to provide tailored insurance solutions. With 40 years of experience with a range of Australian businesses, we understand how best to protect your unique risk exposures. We pride ourselves on our exceptional customer service and we proactively work with our clients to continually develop your insurance program.
To find out how supermarket insurance can protect your business, speak with GSK Insurance Brokers today.