If you run a retail business, then watch out for these serious risks.
As a retailer, you are subject to very serious commercial risks. Failing to address these threats could leave you vulnerable to business-ending catastrophes. This is why it’s so important to be proactive and take steps to prevent these top retail risks.
The theft of inventory and money remains one of the most serious issues that brick-and-mortar retail stores face. According to the National Retail Federation, theft cost American retailers over $50 billion in 2018 alone. To prevent your stores from being burglarized, you should install security systems that include alarms, sensor-based tags on items, locked display cases, and video surveillance equipment. You should also train your staff to watch out for telltale signs of shoplifters. For instance, shoplifters often employ tactics such as moving in large groups, diversions to distract employees, and switching the price tags on items. By teaching your staff about these warning signs, they can be more vigilant and effective at preventing theft.
- Data Breach
Physical stores aren’t the only retailers that face risks. As the e-commerce industry grows, online retailers need to watch out for the risk of a data breach. According to TransUnion, e-commerce businesses lost $7 billion to fraud in 2016. Incredibly, this number is predicted to quadruple by 2020. Criminals can target online retailers in several ways. For instance, they can run a phishing scam that tricks employees into giving a hacker access to the company’s main network. This, in turn, allows hackers to steal private company and customer information. Another common threat is distributed denial of service (DDoS) attacks where hackers compromise an e-commerce business’s servers, preventing customers from purchasing items. To prevent cyberattacks, you should consider hiring a cybersecurity specialist to audit your system, software, and protocols. This way, you can learn about security weaknesses and take steps to address these vulnerabilities. You should also secure cyber liability insurance to fall back on in the event of a data breach.
These are some of the top risks that retailers face. Need help securing the right commercial coverage to protect your retail business? If so, then contact the experts at East End Insurance Agency. We are ready to assist you with all your business insurance needs today.