We work with stores that sell entertainment equipment like TV's, radios, audio sound systems, projectors, speakers, CD and DVD players.
We understand the work that goes into building up your store. You have spent many years building up your brand and your local reputation. You are rightly concerned about protecting yourself from liability. After all, your clients rely on your advice, your products, and your services. It's for these reasons that electronics stores can be sued for fraud and negligence in their duties.
What would you do if you were hit with a liability suit for more than your current consumer electronics store insurance covered?
Thankfully here at InsuranceHub, we have experience helping retail electronic stores that:
- Offer repair services for the items they sell.
- Recondition and sell used electronics equipment.
- Offer delivery and installation services.
Be assured that we are ready, willing, and able to help you whether you are an independently owned local store or part of a regional or national chain.
Types of exposure that consumer electronics stores need protection from:
Property exposures: Think about this. How many televisions, sound systems, and computers do you have plugged in right now for your clients to look at? This heavy electrical load poses a fire risk. Combine this with the lubricants, oils, degreasers and solvents that come from your repair operations, along with the plastics used in the products. Can you see why you need to use only licensed electrical contractors that will make sure your wiring is up to code? It doesn't take a big fire to destroy all of your stock. Remember that fire, smoke, and water damage can ruin electronics circuits quickly. As a practical suggestion, keep charging forklifts far away from flammables and do not allow any smoking on your premises.
Another challenge you face is with shoplifting. Small electronics items like iPads, tablets, and headphones are desirable and easy to shoplift. Keep your most desirable items under lock and key. Install a burglar alarm system and make sure it is monitored 24/7. Think about installing physical barriers to prevent entry after hours.
Crime exposures: Your biggest threats are...
- Employee dishonesty: Doesn't it make sense to do background checks on all employees handling money? Doesn't it also make sense to have different people handle the deposits, disbursements, and bank statements?
- Holdups: Collect money from cash drawers regularly and store it in the safe.
- Break-ins and safe burglary: Do you regularly make bank deposits during the day to prevent a buildup of cash overnight?
- Shoplifting: Install shoplifting detection devices in all your product packaging. Install video surveillance cameras. Require that customers leave bags at the front door to help reduce shoplifting.
- Vendor dishonesty: Require that two employees should confirm the accuracy of deliveries from all vendors.
Inland marine exposures: Your biggest threats are...
- Accounts receivable if you offer credit to your clients.
- Bailees customers: This applies if you require customers to check their bags at the front of the store before shopping. It also applies if you repair customer electronics like TVs and stereos.
- Computers: This applies if you use computers to transact sales and monitor your inventory of stock.
- Equipment floater: This covers any forklifts that you use in your warehouse.
- Goods in transit: This applies if your store makes deliveries and installation services.
- Valuable papers and records: Take the time to make backup copies of all vendor and customer records and computer files. Store them off premises.
Premises liability exposure: Your biggest worries come from a few places...
- Slips and falls: Take the time to maintain and repair all floor coverings to prevent trips and falls. Make sure that emergency lighting and exit lighting is sufficient and working.
- Electronic devices should be kept on easily reached shelves so that customers do not accidentally pull items down on themselves.
- Parking lots and sidewalks: Repair cracks and potholes immediately. Keep them clear of ice and snow. Make sure that exterior lighting is adequate.
- Do you offer setup and delivery services? Then there is a chance that your client's property may be damaged.
- Shoplifters: You have a tremendous risk with apprehending and detaining suspected shoplifters. Install a CCTV camera system to record what happened. Train your employees how to respond safely.
Products liability exposure:
- Do you do any direct importing of electronic equipment? Talk to your InsuranceHub.com agent.
- Do you install any purchased goods at the customers' premises? Make sure that the installation meets all manufacturers' specifications.
- Finally, if you send customers' items to outside service centers and repairmen for servicing, be sure to get copies of their certificates of insurance.
Automobile exposure: Do you provide a pickup and delivery service for your customers' goods? Do you provide installation services? Make sure that all drivers have valid licenses and clean MVRs. Maintain all vehicles and keep records of all work done.
Workers' compensation exposures include:
- Improper lifting techniques can cause back injury, hernias, sprains, and strains. Slips and falls are always a concern. Provide safety equipment and proper training to reduce the possibility of injury.
- Make sure that all shelves are easily accessible for storage. Provide safe stepladders along with training.
- Teach good housekeeping in the store aisles and warehouse area.
- Repairing electronics can cause electrical shocks, cuts, and burns. Instruct all workers to be sure that the power is off and tested before repairing it.
- Hold-ups: Set up a corporate written policy and train all employees on the proper way to respond in case of holdups.
- Delivery truck drivers can be injured in accidents, or hurt by carrying heavy televisions up or down staircases.
Here is the minimum recommended electronics store insurance coverage:
- Business Personal Property
- Business Income
- Employee Dishonesty
- Money and Securities
- Accounts Receivable
- Bailee Customers
- Goods in Transit
- Valuable Papers and Records
- General Liability
- Employee Benefits
- Business Automobile Liability and Physical Damage
- Hired and Nonownership Auto
- Workers Compensation
Other retail electronics store insurance coverage to consider:
- Leasehold Interest
- Real Property Legal Liability
- Computer Fraud
- Installation Floater
- Cyber Liability
- Employment-Related Practices
- Stop Gap Liability