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Important Considerations in Choosing an Agent to Service Your Lodging Company

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Which types of coverage are important to consider?

Ordinance or Law

Loss of Business Income

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Glass Breakage

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Insurance Programs for the Hardware Industry

Hardware Stores and Locksmiths

Like most retail stores, hardware stores have a high exposure to direct physical losses to their business personal property or contents, damage to the building, and loss of business income. Other property and time element exposures include damage to electronic data and processing equipment or EDP, monies and securities, off premises power failure, backup of sewer and drains, property in transit, outdoor signs, glass breakage, etc.

It is very important to identify exposures before securing a policy as the needs of one store can greatly differ from another. The liability aspect in particular can be vastly different with hardware stores if an on-call locksmith is utilized. Most locksmiths provide onsite installation and repairs. After the locks are installed or serviced, the products and completed operations exposures become a major concern. Due to nature of work of a locksmith, traveling to and from the customers’ locations generally requires some form of transportation such as a commercial auto or the auto used by the employee thus becoming a non-owned auto exposure to the business.

Other repairs, both onsite and offsite often categorize hardware stores along the same lines as contractors, working on the premises of others. Hence, it is important to cover any exposures relating to the sales, installation, and repairs of the goods sold such as windows, doors, gutters, and other fixtures.

It is generally required by almost every state to provide coverage for injured employees. It is also important to ensure all subcontractors are protected by some form of workers’ compensation insurance. The store can be held vicariously liable for any injuries to its employees and subcontractors. There are a number of states that require coverage for off the job injuries and illnesses in the form of short term disability insurance.

Finally an umbrella or excess liability policy provides an additional layer of liability coverage which should coincide with the underlying lines such as the auto, premises, products, operations, and completed operations. Often overlooked are the fiduciary, employer practices, and benefits liability exposures. Thus, if these types of liability concerns are not addressed initially, most often the coverage will not be offered by the umbrella or excess liability policy.

Other important exposures that may need to be addressed:

Accounts receivables Provides insurance for monies owed if records are destroyed.
Glass breakage Protects against the loss of glass breakage that may otherwise be excluded or limited in standard policies.
Outdoor signs Insure an amount to repair or replace a outdoor signs, attached or detached from the building for a multitude of perils including vandalism and wind.
Equipment breakdown Insurance for mechanical, heating, air conditioning and electrical systems used to maintain your business.
Ordinance or law coverage Provides coverage for increased costs in construction and demolition costs related to local or federal regulations.

William F. Schaake, CIC, CRM © 11/2011