Dive Brief:
- A new Chubb advisory warns that as grocery stores expand their services to entice shoppers, they are exposing themselves to greater risks than slip-and-fall incidents and tainted food issues, according to Progressive Grocer.
- Many grocery retailers may not be fully insured for the dangers that come with popular new store services such as home deliveries, in-store day care and pharmacies.
- “It only takes a single incident to cause irreparable damage to a brand’s reputation and financial health,” VP of Chubb Express Casualty Nicholas Davis said. “In such a competitive field, it’s prudent for supermarket operators and management to be diligent and take extra precautions to help mitigate a wide range of exposures.”
Dive Insight:
Supermarkets should have tailored policies to protect against applicable risks — including assault, battery and robberies — and revisit those policies when big changes occur. With today's grocery stores expanding their services to be more convenient hubs for busy shoppers, the number of things that could go wrong is also expanding.
Insurance agents caution retailers to let them know when changes are made — in services offered, in-store renovations or even certain new hires who could come with risks — in order to ensure adequate coverage. The Chubb Advisory noted that groceries that have in-store pharmacies, banking facilities or sell alcohol need to make sure they are covered for those particular risks and when considering umbrella insurance policies.
As far as alcohol sales go, Chubb encourages stores to enact stringent identification policies that reduce the risk of selling products to underage shoppers. Retailers should also decide if they want to limit the amount of alcohol shoppers can purchase at one time, and monitor their parking lots and store perimeters to ensure that consumers aren't drinking on the premises.
Catastrophe management insurance is also something grocery stores should consider to protect their reputations. ACE Insurance offers this kind of coverage to help both policy and public relations risks associated with environmental catastrophe. It also would cover the costs for a public relations or crisis communications firm if something like a food recall went bad.
Retailers should seek out carriers that have policies specifically designed to handle the claims that grocery stores are likely to face.