Tainted food, liquor liability, and criminal activity are among some of the most critical and urgent risks facing today’s supermarkets, according to a new Chubb advisory. While common issues such as slip-and-fall incidents remain front and center, the advisory warns that as supermarkets add new services and products such as pharmacies, daycare operations, and home delivery to attract customers in a fiercely competitive business environment, they expose themselves to a wider range of risks.
“It only takes a single incident to cause irreparable damage to a brand’s reputation and financial health. In such a competitive field, it’s prudent for supermarket operators and management to be diligent and take extra precautions to help mitigate a wide range of exposures,” said Nicholas Davis, vice president, Chubb Excess Casualty. “While more common risks such as injuries due to spills or broken glass seem to get the spotlight, supermarkets should assess whether they are covered for a full range of risks, and work with an insurer who understands the complexities of this industry to craft the most comprehensive coverage.”
“Supermarkets: Addressing the Risks in an Evolving Market” was co-authored by Davis and Stephanie McMullen, assistant vice president, Excess Casualty, Chubb North America. The advisory explores the most salient risks facing today’s supermarkets, including:
- Slip-and-fall Incidents – Slips, trips and falls due to spilled liquids and dropped foods remain some of the most common and costly risks for supermarkets.
- Tainted Food – As supply-chain and contamination concerns gain more attention, the penalties for tainted food have become increasingly severe.
- Alcohol Sales – Beer, wine, and liquor sales have expanded to represent a significant part of supermarkets’ revenues in many states.
- Assault, Battery and Robberies – Supermarkets continuously remain a potential target for crime of all types.
Since alcohol sales make up a large part of supermarket revenue, dram shop laws should be taken into consideration as establishments that sell liquor can be held liable for injuries allegedly related to the sale.
Discrimination, toward both employee and customer, is another concern that should be on supermarkets’ radar. The authors cite several class action suits related to race and ethical discrimination that resulted in verdicts or settlements totaling more than $1 million.
Tractor/trailer deliveries also pose risks for supermarkets. Customer bodily injury and property damage needs to be prevented and supermarkets should insurers drivers are fully trained and vehicles maintained.
Read the full advisory by pasting this address in your web browser: http://chubb-v2-stage.acegrpaccess.com/us-en/business-insurance/supermarkets-evolving-risks.aspx
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