THE
v
ALUE
OF
WHOLESALE & RET
AIL
INSIGHT
a QuIck guIde to
WhoLesaLe
& retaIL InsIght
For a cLearer
understandIng
oF corPorate rIsk
IndustrY
InsIght
keY rIsks
FIre
daMage
Warehouses are critical to Wholesale & Retail businesses, so whilst it’s fundamental to manage the fire inception and development hazards that could interrupt Warehouse operations and therefore the Business, we must not overlook the impact of damage at key Retail sites.
heaLth
& saFetY
Retail locations vary significantly and there are a myriad of products and services sold through a wide spectrum of retail solutions. Potential hazards such as slips and trips; falls, manual handling; workplace transport, being struck or injured by objects, tools or equipment, need to be identified and prevented. Warehouse facilities are key to Wholesale businesses typically forming the hub of their operations. It is therefore important to manage and minimise the hazards they present to help prevent accidents.
Water daMage
to stock
Goods can be highly susceptible to flood damage caused by storm and rainfall which can severely affect property and revenue.
theFt
High value theft attractive stock needs careful risk assessment and focus on risk management protections.
BusIness
InteruPtIon
As well as fire damage and loss of buildings, wholesalers and retailers carry heavy business interruption exposures and dependencies, it is therefore key that customers develop resilience through business continuity ensuring that sales have the capacity to recover without undue delay.
envIronMentaL
The importance of green issues, environment clean up legislation and carbon reduction are all increasing.
suPPLY chaIn
InterruPtIon
Just-in-time Wholesale & Retail companies need products in the right place, in the right quantity at the right time. Major global catastrophic events can cause huge log jams in supply chains resulting in missed deliveries and seasonal windows or even breaches of contract.
Product
recaLL
Against a background of ‘hard to monitor’ imports from the Far East and heightened consumer rights and awareness, more retailers/resellers than ever are demanding product recall cover to deal with costs incurred dealing with faulty products.
Brand
daMage
Mismanagement of a brand following a major incident such as property loss or product recall can severely damage a company’s reputation and lead to severe loss of customer confidence and ultimately, shareholder value.
Wholesale is a growing and evolving sector in the UK economy, covering enterprises from local distribution depots to substantial centralised national hubs. Retail is the UK’s largest private sector employer, employing over three million people and generating sales of over £300 billion.
To protect their businesses safely and adequately, Wholesalers and Retailers need industry experts like Zurich more than ever. That is why we have created a Wholesale & Retail proposition that provides tailored insurance coverage and access to risk relevant advice…
…lots of benefits for Wholesale & Retail customers to buy into.
The key risks in
Wholesale & Retail
Insurance InsIght
cover and
vaLue
trade sPecIFIc
cover extensIons
Automatically included as standard Material Damage
• Trace & Access – £25,000 Limit
• Mitigation of Inevitable & Imminent Damage – covers the costs of any measures that are taken to reduce Mitigation of Inevitable and Imminent Damage. £25,000 limit in the aggregate. Silent about limit once damage has occurred
• Brand Labels – No specific limit
• Sprinkler Upgrade
• Adaption Clause 1
Disaster Recovery
Our disaster recovery suppliers get companies back up and running quickly after an insured loss by finding alternative office space and setting up phone and internet connections to local networks as quickly as possible.
Risk Management Advice Line
Free, practical advice on risk management topics such as property, security, business continuity, environmental, food hygiene and health and safety, to help you proactively identify and manage issues before they occur.
Business Interruption
• Unspecified Suppliers (UK) – £100,000 Limit
• Unspecified Customers (UK) – £100,000 Limit
• Property Stored (UK) – £50,000 Limit
• Public Utilities – £100,000 Limit
• Prevention of Access – £50,000 Limit
• Accumulated Stocks – £100,000
• Loss of Attraction – £50,000
• Transit Extension (UK) – £50,000
• Essential Personnel – £20,000 Limit
• Public Utilities Full Internet – £5,000 Limit
• Action of competent authorities – £50,000 Limit
• Refrigerated Stock – £10,000 Limit
• Seasonal Stock – £500,000 Limit
• Exhibitions – £10,000 Limit
• Money/Assault including counselling
• Fines and Damages – £100,000
Product Liability
• 1st Party Product Recall – £100,000 Limit
Public Liability
• Environmental Clean Up Costs – sudden and unforeseen (not gradual) extension to Public Liability. LOI up to £1 million (any one period) and will form part of the LOI in the schedule
Additional relevant covers and services Brand Protection
Automatically included where Property and/or Casualty are purchased. This helps your customers to manage their reputation following a major loss in excess of
£1 million under the Property and/or Casualty covers – £50,000 Limit.
Motor Fleet, Marine Cargo,
Engineering Insurance and inspection services are also available for your Wholesale and Retail customers.
rIsk InsIght
WIder rIsk-reLated
exPertIse
Value Added Services
By passing on value across the risk spectrum, we can give you and your Wholesale & Retail customers a broader understanding of their risk profiles. Some services are in-house, some are provided by our partners who are leaders in their fields. All of them give you added insight to help you win and safeguard customers.
Zurich services:
• Supply Chain Risk Management & Assessment
• Risk Management Consultancy
• Mergers & Acquisitions
• Multinational Insurance
• UK based cross-border insurance
• Risk Profiling
Wider risk-related services:
• Legal Experts
• Environmental Consultants
• Loss Adjusters
keY
trade
accePtaBILItY
crIterIa
Zurich have the expertise to help you identify what to look for in terms of typical
Wholesale & Retail risks. This includes how to understand good risk profiles, well
managed hazards and key risk features to look for in Wholesale & Retail customers.
What is the profile
of a well managed risk?
In General:
We recognise that every customer is different but in terms of a ‘good risk profile’ customers should be able and willing to:
• Demonstrate active Corporate Governance to identify, monitor and address all risk issues to the business
• Show a proactive approach to risk through structure and reporting mechanisms
• Show a systematic approach to risk issues by adopting management systems and risk control best practices
• Seek a long-term relationship with an insurer who will partner the business in controlling risk
For Property Risk:
• A property of non-combustible construction, with a low to medium inception and flood hazard
• A proactive risk management approach, well managed, well protected and has good business resilience
• Enjoy good supply chain relationships
For Casualty Risk:
• Have the right culture and structure to manage present and future risk as effectively as possible
• Adopt a management systems approach to health and safety incorporating best practice
• Adopt a systems based approach to product safety and environmental risk based on best practice
• Have an appreciation of the legal and regulatory climate and work with an insurer who brings new insights to their mitigation of business risk
Well Managed
Inception Hazards
• Light fitting and tubes kept well clear of stock
• Forklift battery chargers suitably guarded/segregated
• Free standing heaters guarded and clear of combustibles
• Top of storage racks kept clear of overhead heaters
• Smoking effectively controlled
• Suitable precautions with shrink wrap operations
• Suitable storage arrangements outside
• Modern, well maintained and tested
electrical installations (and portable appliances) in good condition
• Hot Work adequately controlled
• Theft risk suitably assessed
• Money controls and regular banking arrangements
Hazard Features
Mitigating Loss
• Storage arrangements acceptable with fire doors and shutters in good working order and free from obstruction
• Good physical and alarm protections
• Suitable storage of LPG used for forklift trucks
• Separation of hazardous articles including aerosols
• Excellent waste removal and processes
• Maintenance of all fire fighting appliances
• Identification for specific consideration of all combustible panels and linings such as fireboard, EPS, PUR and PIR
• Compartmentation ideally through firebreak walls
Acceptable risk features
• Building Construction – Non-combustible
• Category of Goods – Low combustibility goods/packaging, low to medium theft risks
• Inception Hazards – Goods Handling, Maintenance, Management – see profile of a well managed risk
• Method of Storage – Non-combustible racking up to 4m. Can be negative in some circumstances but in others (purpose built, automated warehouses with best practice operations) it can be a positive feature
• Sprinkler Design – Pressure, flow, distribution of heads in rack sprinklers
keY
trades
We’re
FocusIng on
W
ho
Lesa
Le
We’ve focused on specific groups of
Wholesale & Retail trades where we want
to grow our presence.
Wholesalers of
MachInerY
& eQuIPMent
Includes: • Machinery tools
• Mining, construction and civil engineering machinery
• Machinery for the textile industry
• Agricultural machinery, accessories and implements No. of £5m-£300m UK firms 183*
1
Wholesalers ofhardWare,
PLuMBIng &
heatIng eQuIPMent
Includes:• Power tools, electrical goods and hardware
• Plumbing and heating goods and equipment
• Industrial engineering products and ironmongery No. of £5m-£300m UK firms 180*
4
Wholesalers ofconstructIon
MaterIaLs &
sanItarY eQuIPMent
Includes:• Building materials and allied products
• Sale of timber and wood products
• Bricks and building supplies
• Bathroom and sanitary ware products No. of £5m-£300m UK firms 473*
3
Wholesalers ofMetaLs
& ores
Includes:• Metal ores, concentrates and refined metal, primarily copper, lead and zinc
• Fittings and pipes, made of stainless steel and other metals
• Steel reinforcements and accessory products to the civil engineering and construction industry
No. of £5m-£300m UK firms 199*
Wholesalers of
househoLd
goods
Includes:
• Electronic household goods and other household goods
• Records, CDs, DvDs and equipment on which these are played
• Radios and televisions No. of £5m-£300m UK firms 337*
7
Wholesalers ofcoMPuters,
coMPuter
eQuIPMent
and soFtWare
Includes:• Office machinery and equipment
• Entertainment software and games consoles No. of £5m-£300m UK firms 121*
6
Wholesalers ofIndustrIaL
eLectronIc Parts
& eQuIPMent
Includes:• Amusement machine and vending machines suppliers
• Alarm systems lighting fixtures and electrical appliances No. of £5m-£300m UK firms 121*
5
Wholesalers oftextILes,
cLothIng &
FootWear
Includes:• The sale of textiles, clothing and leather goods
• Adult, childrens’ and infant clothing No. of £5m-£300m UK firms 643*
8
Wholesalers ofFresh Foods,
FruIt and
vegetaBLes
& FLoWers
Includes: • Processing/Packaging and distribution of fruit and vegetables• Fresh and chilled products for food services sector
• Wholesale suppliers of flowers, plants and associated goods and services No. of £5m-£300m UK firms 429*
9
other
WhoLesaLe
Includes:• Storage and warehousing
• Sports equipment
• Games and toys (excluding soft toys)
• Stationery and office supplies and equipment No. of £5m-£300m UK firms 2,366*
10
ret
a
IL
retailers of:grocerIes
Includes: • Newsagents • Green grocer • Butcher • Fishmonger • Bakers • Off licence• Other specialist foods No. of £5-£300m UK firms 228*
1
retailers of:PersonaL care
Includes:• Cosmetics and toiletries
• Opticians • Personal aids No. of £5-£300m UK firms 68*
4
retailers of:cLothIng
& LeIsure
Includes: • Clothing • Shoes• Sports goods, fishing gear, camping goods, boats and bicycles shop
• Coffee shop
• Musical instruments
• Toys, arts and crafts No. of £5-£300m UK firms 341*
5
retailers of:eLectrIcaL
eQuIPMent
Includes:• Computers hardware and software
• Household appliances
• Multimedia and technology No. of £5-£300m UK firms 86*
2
retailers of:FurnIture
& hardWare
Includes:• Carpet, wall and floor coverings
• Furniture and furnishings
• DIY • Ironmongers No. of £5-£300m UK firms 144*
3
sPecIaLIsts
Includes:• Cards and stationery
• Florists
• Pets
• Art galleries
• Online and mail order retailers No. of £5-£300m
UK firms 166*
For Further InsIght Into
WhoLesaLe & retaIL BusIness
and hoW We can saFeguard
It together, taLk to Your LocaL
corPorate underWrIter,
vIsIt
zurIch.co.uk/Broker
or FoLLoW us
@zurIchInsIder
UKGI550 401445001 CHA
Zurich Insurance plc
Zurich Insurance plc, a public limited company incorporated in Ireland. Registration No. 13460. Registered Office: Zurich House, Ballsbridge Park, Dublin 4, Ireland. UK Branch registered in England and Wales Registration No. BR7985. UK Branch Head Office: The Zurich Centre, 3000 Parkway, Whiteley, Fareham, Hampshire PO15 7JZ. Zurich Insurance plc is authorised by the Central Bank of Ireland and subject to limited regulation by the Financial Conduct Authority. Details about the extent of our regulation by the Financial Conduct Authority are available from us on request. These details can be checked on the FCA’s Financial Services Register via their website www.fca.org.uk or by contacting them on 0800 111 6768. Our FCA Firm Reference Number is 203093. Communications may be recorded or monitored to improve our services and for security and regulatory purposes. © Copyright – Zurich Insurance plc 2013. All rights reserved. Reproduction, adaptation, or translation without prior written permission is prohibited except as allowed under copyright laws.