Retail businesses face these risks.
If you own a retail business, then you face some very serious risks. Unfortunately, many retailers do not address these risks, and they end up suffering from reputational damage and other losses. To ensure that your business doesn’t take a hit, make sure you address these serious threats.
- Theft
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 your store from being burglarized, you should install security systems that include alarms, sensor-based tags on items, locked display cases, and video surveillance equipment. You should also train your staff to watch out for telltale signs of shoplifters.
- Data Breach
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 a data breach. According to TransUnion, e-commerce businesses lost $7 billion to fraud in 2016. Incredibly, this number is predicted to quadruple by 2020. To prevent cyberattacks, you should consider hiring a cybersecurity specialist to audit your system, software, and protocols. This way, you can learn about security weaknesses and take steps to address these vulnerabilities. You are also encouraged to secure cyber liability insurance to fall back on in the event of a data breach.
- 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 you could suffer damage to your 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, you can protect your retail businesses by securing comprehensive property insurance.
These are some of the serious risks that retailers face. Remember, another way to protect your business is by securing the right commercial insurance coverage. For assistance with all your business insurance needs, contact the experts at VGW Walker Insurance in Texas today.
