Retailers, watch out for these serious threats.
If you own a retail business, then you face some serious commercial risks. If you do not address these threats, then your business’s finances and reputation will undoubtedly take a hit. The best way to mitigate your risks is by being proactive and putting a comprehensive risk management strategy into place. But, before you can develop a strong strategy, you need to know which risks that you face. Here are some of the most common threats that retailers need to watch out for.
The theft of inventory and money remains one of the most serious issues that brick-and-mortar retail stores face. According to the National Retail Federation, theft cost American retailers over $50 billion in 2018 alone. To prevent their stores from being burglarized, retailers should install security systems that include alarms, sensor-based tags on items, locked display cases, and video surveillance equipment.
Physical stores aren’t the only retailers that face risks. As the e-commerce industry grows, online retailers need to watch out for the risk of data breach. According to TransUnion, e-commerce businesses lost $7 billion to fraud in 2016. Incredibly, this number is predicted to quadruple by 2020. Criminals can target online retailers in several ways. For instance, they can run a phishing scam that tricks employees into giving a hacker access to the company’s main network. This, in turn, allows hackers to steal private company and customer information. Another common threat is distributed denial of service (DDoS) attacks where hackers compromise an e-commerce business’s servers, preventing customers from purchasing items. To prevent cyberattacks, retailers should consider hiring a cybersecurity specialist to audit their system, software, and protocols. This way, retailers can learn about security weaknesses and take steps to address these vulnerabilities. Business owners are also encouraged to secure cyber liability insurance to fall back on in the event of a data breach.
- Property Damage
Both physical and e-commerce retailers need to worry about the risk of damage. This is because all retailers have warehouses or locations where their goods are stored. If a natural disaster or serious weather event hits, then the retailer could suffer damage to their building, inventory, and other commercial property. The best way to protect against damage is by understanding which weather-related risks are most likely to strike your area. While you cannot prevent weather-related risks, you can take steps to minimize the damage caused by earthquake, fire, hurricane, flood, and so on. Additionally, retail businesses can protect themselves by securing commercial property insurance.
These are some of the top risks that retailers face. Need help securing the right commercial coverage to protect your retail business? If so, then contact the experts at Scavone Insurance Center in White Plains, New York. We are ready to assist you with all your business insurance needs today.