retail & service

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etail & Service

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Retail & Service

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TWFG Commercial Business SchoolRetail & Service

Learning Objectives

Become more familiar with business segments of Retail Stores, Business Services, and Personal Service

To understand the common risk exposures for all lines of coverage

To understand what carrier Enhancement Forms are, and how they tie into the selling of this business segment

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TWFG Commercial Business School Retail & Service

Glossary

NFPA: National Fire Prevention Associatation

Bailee Coverage

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Exposures in General

General Liability Property

Premises Premises

Products Employee DishonestyOperations Bailee Coverage

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Automobile Workers Compensation

Usually incidental Highly recommendedNeeded for delivery 1 claim can force bankruptcy

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EPLI Cyber Liability

Wrongful termination Disclosure of Private InfoDiscrimination Regulatory ExpensesSmall Minimum Premium Network Damage

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More on Cyber LiabilityNeeded for any business that utilizes electronic payment methods

Minimum Risk Controls that must be in place:Anti-VirusSpecial protection in place for insured’s with

Internal Networks

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Exposures Example: Automobile Accessories Store

SIC Code: 5531 Auto and Home Supply StoresNAICS Code: 441310 Automotive Parts and Accessories

Stores 441320 Tire Dealers

Suggested ISO General Liability Codes: 10071Suggested Workers Compensation Codes: 8046, 8380

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Description of Operations: Automobile accessories stores sell a wide range of retail and wholesale auto parts and supplies for repair and replacement. Some automobile accessory stores have machinery operations to repair or rebuild parts such as brake drums or to custom-make old, difficult-to-replace parts. Other operations may include repair services, facilities to repair your own vehicle, rental of tools and equipment, and tire replacement operations. Used and rebuilt parts may be available as stock. Some specialize in foreign parts. Many stores are part of a franchise, chain, or purchasing group.

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Typical Exposures:Property Products LiabilityCrime Automobile LiabilityInland Marine Workers CompensationPremises Liability

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TWFG Commercial Business School

Retail & Service


Minimum Recommended Coverage:BPP General LiabilityBusiness Income Employee BenefitsEmployee Dishonesty UmbrellaMoney & Securities Auto Liability & Physical DamageAccts Receivable Hired/Non-Owned AutoComputers Workers CompensationValuable Papers & Records

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Other Coverages to Consider:Building Installation FloaterLeaseholder Interest SignsReal Prop Legal Liability Employment Related PracticesForgery Garage-KeepersComputer Fraud Cyber Liability

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TWFG Commercial Business School

Retail & Service

Additional Exposures Examples:

Bicycle ShopFurniture Store

All 3 Exposures Examples are available on the Branch & GA websites

Additional Exposure Analysis’s can be built in Silverplume or the VRC

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Intro to Business Income CoverageDefinitions:

Business IncomeExtra ExpenseSuspensionPeriod of Restoration

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Intro to Business Income CoverageBusiness Income Pays:

1. Net Income that would have been earned and2. Continuing normal expenses, including payroll3. For actual loss you sustain due to a necessary suspension of operations during the period of restoration.

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Intro to Business Income CoverageCovered Extra Expenses include those incurred to:

1. Avoid or minimize the suspension of operations at the insured’s location2. Minimize the suspension of business if you cannot continue operations3. Costs to repair or replace property, but only to the extent that it reduces the BIC or EE that would be incurred

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Carrier Enhancements

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Carrier AppetiteAll of our major carriers have a broad appetite for:

RetailPersonal ServiceBusiness Service

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Preferred SIC CodesSupport Document Located on the Branch

& GA websites

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Submission ChecklistA submission checklist is the easiest way to ensure that all exposures have been accounted for and addressed

Support document is available on the Branch & GA websites

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Case StudyThis segment includes a Case study. For those Branches participating in the Certified Commercial Branch Agency (CCBA) Program you will need to complete and pass in order to receive credit for this segment. For Branches not participating, the Case Study is optional

For GA agents the Case Study is optional.

The Case Study material will be available on the Branch and GA portals

RETURN COMPLETED CASE STUDIES TO MARK GLAUG @

[email protected]

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QUIZ

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1. Most retail stores have Premises as the primary GL exposure. What other types of operations could present different GL exposures? Think of furniture stores, appliance stores and flooring stores.

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1. Most retail stores have Premises as the primary GL exposure. What other types of operations could present different GL exposures? Think of furniture stores, appliance stores and flooring stores.

Other operations might include installation (operations and completed operations), delivery (operations).

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2. What special type of Property coverage is needed for businesses that take custody of customers’ property for service or repair, and what’s the recommended coverage option?

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2. What special type of Property coverage is needed for businesses that take custody of customers’ property for service or repair, and what’s the recommended coverage option?

Bailee’s coverage, a type of Inland Marine coverage is what is needed. Having the coverage apply on a primary basis without regard to legal liability is recommended.

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3. Name 2 “add-on” coverages that should be offered on most retail/service accounts. (There are 4)

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3. Name 2 “add-on” coverages that should be offered on most retail/service accounts. (There are 4)

1. Employee Dishonesty 2. Employment Practices Liability (EPLI) 3. Cyber Liability/Data Breach 4. Workers Compensation.

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4. What is the NFPA, and how does it relate to the property exposures of a furniture store or bicycle shop?

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4. What is the NFPA, and how does it relate to the property exposures of a furniture store or bicycle shop?

The NFPA develops national safety standards and codes for fire, electrical and hazardous materials. Flammables used in furniture store or bicycle shop operations would need to be stored in NFPA approved metal cabinets with proper separation. Oily rags would need to be disposed of/stored in self-closing metal containers.

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5. If the insured is a tenant, what do you need to know regarding the square footage of the occupied building?

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5. If the insured is a tenant, what do you need to know regarding the square footage of the occupied building?

1. The total square footage. 2. The square footage occupied by the insured 3. Total occupied (or total vacant) square footage or % of total square footage.

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6. When does the period of restoration begin for Business Income?

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6. When does the period of restoration begin for Business Income?

72 hours after a covered loss.

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7. What is the primary purpose of Business Income Coverage?

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7. What is the primary purpose of Business Income Coverage?

To provide continued expected net income and to cover normal operating expenses during a suspension of operations due to a covered loss.

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8. What does Extra Expense cover?

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8. What does Extra Expense cover?

Necessary additional expenses incurred during the period of restoration that would not otherwise have been incurred.

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9. Give an example of an Extra Expense.

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9. Give an example of an Extra Expense.

Temporarily relocating operations in order to continue doing business.

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Questions???

retail & service

Documents

business services

wide range of retail

personal service

automobile accessories

automobile accessory

automotive parts

rebuilt parts

foreign parts