Advice Needed - Retail Risk

[Herkster]

Hey everyone

I'm hoping someone can help me out in figuring out what I all need to know and ask when writing a retail risk. My market, which if you've ever seen any of my previous posts, is 50% farm, 50% home, due to my location. Very few retail risks (I have auto shops and risks like that, but no actual storefront risks) on our book.

I'm working on a quote for a bridal store and I'm really at my wits end on what I need to ask. I've got two companies that will quote it for me, probably will find another one or two that will be able to as well. I've seen the requirements by the actual store owner, she will be leasing building space, so I know what liability limits she needs, but I'm not sure what else to ask for. Thoughts?

 

[greatfish]

Not too much to a retail/main street biz.
This would get put on a BOP.
You need to know inventory, furn. & fixtures, square footage of space, annual sales and payroll info

 

[Sales71]

Hey everyone

I'm hoping someone can help me out in figuring out what I all need to know and ask when writing a retail risk. My market, which if you've ever seen any of my previous posts, is 50% farm, 50% home, due to my location. Very few retail risks (I have auto shops and risks like that, but no actual storefront risks) on our book.

I'm working on a quote for a bridal store and I'm really at my wits end on what I need to ask. I've got two companies that will quote it for me, probably will find another one or two that will be able to as well. I've seen the requirements by the actual store owner, she will be leasing building space, so I know what liability limits she needs, but I'm not sure what else to ask for. Thoughts?

The Accord Application has the question to ask. Or ask your underwriter what question they need to get the quote.

 

[Theinsuranceguys]

What state are you in? Maybe we can point you in the right direction as to what carriers have a good appetite for your market.

 

[Herkster]

The Accord Application has the question to ask. Or ask your underwriter what question they need to get the quote.

Thanks for a smart ass answer I appreciate it

I am trying to get an idea of stuff I need to know about the business to help decide which company I want to try to place it with, as well as do a little underwriting on the risk before completing the quote.

 

[nyc2phi]

Thanks for a smart ass answer I appreciate it I am trying to get an idea of stuff I need to know about the business to help decide which company I want to try to place it with, as well as do a little underwriting on the risk before completing the quote.

The BOP risks are generally classified for you already. If she sells wedding dresses there is generally a class for that with all bop carriers. What you'll need to know is if it's retail or wholesale. If she says neither find out if she manufactures the dresses, if so this would no longer be a BOP it would go on a package.

You'll need to know the regular stuff like sales, sqft occupied, alarm system, etc.

 

[Herkster]

The BOP risks are generally classified for you already. If she sells wedding dresses there is generally a class for that with all bop carriers. What you'll need to know is if it's retail or wholesale. If she says neither find out if she manufactures the dresses, if so this would no longer be a BOP it would go on a package.

You'll need to know the regular stuff like sales, sqft occupied, alarm system, etc.

Thanks NYC, I have the class code for the bridal store already, and what the landlord requires the tenant to carry for fire legal liability, premise liability, etc.
Waiting to hear back on sq footage, estimated first year sales for her GL, alarm system/fire suppression/automatic call out to the fire department, etc.

Checking to see if she is doing alterations or dyeing herself, or if she is hiring that out. If she is doing that, I'm assuming she'll need an E & O (professional liability) policy of some sort.

 

[1manshow]

E&O should not be necessary for alterations...at least with our carriers.

One suggestion if you're going to expand into new commercial markets...look into "Coverages Applicable" book from rough notes. It will help you find coverage and endorsements that are specific and relevant to each class of biz.

 

[Herkster]

Well, I got my quote finished up yesterday and I am pretty satisfied with the premium, as is the business owner. Seems like I've got a good chance at placing the business with our preferred carrier, Allied. Thanks for all the help on this guys, it isn't our usual type of business that we write so I'm glad I could reach out here for some advice.

 

[Jobjam]

Hey everyone I'm hoping someone can help me out in figuring out what I all need to know and ask when writing a retail risk. My market, which if you've ever seen any of my previous posts, is 50% farm, 50% home, due to my location. Very few retail risks (I have auto shops and risks like that, but no actual storefront risks) on our book. I'm working on a quote for a bridal store and I'm really at my wits end on what I need to ask. I've got two companies that will quote it for me, probably will find another one or two that will be able to as well. I've seen the requirements by the actual store owner, she will be leasing building space, so I know what liability limits she needs, but I'm not sure what else to ask for. Thoughts?

As I do more and more BOP for any business, it actually gets easier to know what questions to ask. I totally understand your question. What I do for every carrier, I write with, is ask for a supplement app for the risk or a general BOP supplement/questionaire. Most every company has these. Also, you can always use a company that has one and submit it to another carrier. A lot of carriers will except someone else's supplement app or questionaire.

For someone that does not own the business and is a tenant, the questions are usually the same. You just customize it for the risk. I have never done a bridal shop but I can tell you what i would ask up front.

Name of Corp and DBA
Year business started
Address, phone, email etc contact info
Gross sales
FEIN
Inventory amount, for BPP
How many full and part time employees
Is it a free standing building or are there other retail or habitation in building, strip mall
If other retail a lot of underwriters want to know what other retail shops are being leased. Even of they are only a tenant underwriting asks.
If there is habitation how many units?
Square footage occupied
Store hours
Do they need Work Comp, great way to cross sell at initial meeting. Get WC info
Do they need hired and non owned on policy
Do they need EQ or flood
If your doing a package and the carrier doesn't offer ALS for BI then I would explain what it is and how much they would need if a loss occurred to pay standard bills that will continue to incur and salaries.
Do they have any past claims
Ask for them to get loss runs so you are prepared if prior is applicable
I always ask the year of the building even if it is a tenant.

I try to get as much info that I can upfront to minimize the dreaded info gathering for the insured. I feel bad to have to go back several times and bother the client.

This should be a great start. Good luck!