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Retail Food Markets Insurance

Insuring Supermarkets


Supermarkets have certain exposures that are unique in retail food industry.  Many food stores prepare and serve food, and maintain stock that is subject to perishing and spoilage.  Larger food stores tend to sublet various departments.  These independent operators may include the seafood, meats and butcher, bakery, deli, and even the produce department.  On premise cafés are becoming more popular serving the latest assortment of teas and lattes.   


In order to evaluate the insurance requirements, it is important to determine the risks of operating a supermarket including coordinating the coverage from the various vendors selling their stock on the premises.  The obvious liability exposures are trip and falls, food and airborne illness, liquor, and the auto exposure for deliveries.  Other concerns are the fire legal liability and personal & advertising injury. Requiring the independent operators and vendors to include the supermarket as additional insured is very important to transfer the risk and limit the claims exposure of the market.


A common coverage often overlooked is food spoilage. Simply explained, it covers the loss or damage to the food and beverage inventory in the event of a covered cause of loss. It may be necessary to add mechanical breakdown to protect against the failure of the refrigeration equipment.  It is also important to insure against a power failure that can cause damage to the stock and inventory.


Insuring the contents and equipment should be calculated based on the current replacement cost. Generally the rating is determined based on the amount covered, the premises area, the construction of the building, and any fire protection safety equipment such as sprinklers.  A way to keep the cost low is to raise the deductible or place a coinsurance requirement on the policy.  


Loss of business income would provide coverage for claims of income lost due to the suspension of business operations due to a covered cause of loss. Many BOP’s or business owners policies provide loss of income on an actual loss sustained basis for up to one year so it is generally not necessary to provide a dollar amount of coverage or a specific time period.  


Workers’ compensation and statutory disability or DBL insurance may be required by law.  Building coverage and limits for monies & securities, as well as plate glass insurance are additional options that may be important to consider.  Read more >>

 



By William F. Schaake, CIC, CRM © 2012 All rights reserved



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A- or Better Rated


Admitted Carriers


Nationwide Coverage


Hired & Non-Owned Auto Liability


Tenant’s Fire Legal Liability


Food Spoilage & Contamination


Employer Practices Liability


Employee Benefits Liability


Food & Airborne Illness


Commercial Crime


Liquor Liability




 

Market Vegetables


Important Considerations in Choosing an Agent to Service Your Supermarket



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