The holiday shopping season is a significant period for retailers, with the National Retail Federation forecasting record-breaking holiday spending in 2024. While this presents growth opportunities, it also introduces increased risks related to crowd management, security, and employee safety.
Lockton has offered guidance on how retailers can mitigate these risks and ensure they have appropriate coverage in place.
Insurance brokers should encourage their clients to review their policies before the season begins. General liability insurance is essential, as it covers claims related to bodily injury or property damage to customers or other third parties that may occur on business premises.
Workers’ compensation insurance is also critical, providing protection for employees who suffer injuries or illnesses while on the job, and property and business interruption insurance can address losses if a store is forced to shut down due to property damage. Additional coverage, such as umbrella and excess insurance, may be necessary for larger claims.
Retailers that hire seasonal workers should pay special attention to how these employees are covered. Brokers should ensure that clients understand the workers’ compensation arrangements with staffing agencies and confirm the details outlined in contractual agreements.
In cases of workplace violence, it is important for businesses to understand the potential challenges to workers’ compensation’s exclusive remedy provision, which could expose them to tort claims outside standard statutory benefits.
Lockton highlights the importance of preventive measures to limit potential liabilities during the busy shopping season. Retailers should ensure that their stores are adequately staffed to manage increased foot traffic and train employees on safety protocols, including proper lifting techniques, checkout procedures, and emergency response plans.
Employers should comply with labor laws regarding overtime, breaks, and anti-harassment regulations to protect against legal risks. Developing detailed staffing plans, including procedures for restocking and managing customer flow, can also help mitigate safety concerns.
Retailers should assess physical security measures to ensure their premises are safe for both employees and customers. This includes reviewing public safety requirements, updating permits and licenses, and addressing potential hazards such as inadequate parking lot lighting or uneven surfaces.
Retailers should consider installing temporary barriers and signage to guide customer movement and improve crowd control, particularly during peak shopping hours.
To address the risk of theft, retailers should implement measures such as securing inventory areas, installing surveillance systems, and training employees on how to respond to shoplifting or "smash-and-grab" incidents. Providing employees with a quiet space to decompress during breaks can also help alleviate stress during this busy period.
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Emergency preparedness is another critical area for retailers to focus on. Lockton suggests that clients establish protocols for handling crises, such as fire drills, active-shooter scenarios, and communication plans that allow staff to quickly respond to emergencies.
Retailers should ensure first-aid kits, fire extinguishers, and automated external defibrillators (AEDs) are accessible, and consider hiring trained security personnel to manage potential issues.
In the event of an incident, retailers should conduct post-event reviews with their employees. This process can include discussing lessons learned, addressing emotional stress, and reinforcing safety protocols to prevent similar issues in the future.
Lockton emphasises that with proper insurance coverage and proactive measures, retailers can mitigate the risks associated with the holiday shopping season. These steps help create a safer environment for employees and customers, allowing businesses to focus on serving their communities during this critical time of year.
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