Retailing no longer belongs to the High Street. The superhighway possibly, but not the High Street. The challenge for retailers as they manage new risks in the digital emporium, is to become confident in understanding unfamiliar but necessary forms of insurance such as cyber, data breach, EPL, and supply-chain extensions, as examples.
Many retailers have evolved into multi-channel suppliers, offering bricks-and-mortar outlets through to dedicated white label set ups for branded sales through complex e-commerce web sites. In effect many retailers are really technology businesses shipping products of one sort or another. The insurance must then tilt towards the professional negligence risks inherent within the performance obligations entered into with the b2b white label customer. Risks as diverse as loss of income from site down time, to reputational damage, through to contingent liability for defective products are all possible exposures threatening the balance sheet. This multiplex of risks requires expert broking advice.
Traditional retailing is well catered for by insurers with virtually every insurer able to offer some form of specialist insurance for independent shops through to chains.
The problem is that these policies will rarely be adequate on their own. Even if they were 100% fit for purpose in 1975, before the Internet!
Few “package” shop policies for example offer D&O insurance and fewer still any form of reliable cyber cover.