Supermarkets Facing Heightened Insurance Risks

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, day care 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,” said Nicholas Davis, VP, Chubb Excess Casualty. “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,”

While more common risks such as injuries due to spills or broken glass seem to capture the spotlight, “supermarkets should assess whether they are covered for a full range of risks,” noted Davis, who co-authored the “Supermarkets: Addressing the Risks in an Evolving Market” advisory with Stephanie McMullen, AVP, 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.

 The full advisory from Philadelphia-based Chubb can be read here, which includes additional risks supermarket operators face, as well information on the benefits of having a tailored policy to protect against applicable risks.