SWG PROPERTY – Retail Stores: Opening the Doors to Complete Protection for Brick-and-Mortar Businesses

Dec 2019

Retail stores continue to be a vital part of this country’s economy despite a slowing market. In 2018, 30 international brands made their debut in Canada by opening standalone stores. (1) Though business owners create a welcoming and safe environment for their customers and employees, loss events can and do still happen. South Western Group’s Property insurance provides coverage for the real estate owned by these businesses, plus other business property such as inventory, furniture, and fixtures. For rented or leased property, this insurance also provides coverage for improvements to the space.


With this policy, brokers can provide coverage to a range of retail businesses, including florists, gift shops, beauty salons, cell phone stores, electronic retailers, hardware stores, bakeries, fabric shops, grocery stores, shoe shops, appliance stores, paint stores, antique shops, thrift stores, clothing shops, convenience stores, and more.

Where Do Property-Related Risks Come From?

Businesses, whether long-established or just starting out, might not have adequate protection because the owners underestimate the breadth of coverage that their business needs. Following are some of the major risk areas:

  • Weather events, such as storms involving heavy downpour could trigger flooding or sewer line backup which can damage merchandise and interrupt business
  • Leased units in older buildings may require more maintenance and/or updating to accommodate new laws or changes to the business
  • A store’s merchandise, furniture, and other assets are potentially vulnerable to theft from break-ins, customers, and employees
  • Business owners may be faced with costly mechanical or electronic equipment replacements and/or repairs due to accidents, crime, theft, and other events
  • Goods may be damaged or lost in transit

Finding the Best Policy for Retail Stores

Retail stores can be a high-risk market, and SWG’s Commercial Property insurance is specifically designed to cover hard-to-place property accounts. We can accommodate most realty-type risks, from stand-alone rentals to large commercial risks, with an in-house capacity of up to $6,000,000 ($4,000,000 for Quebec).

Coverage highlights:

  • Broad Form or Named Perils
  • Replacement Cost or ACV
  • Dependent on individual risk, construction, occupancy and town grade

Other coverages include:

  • Business Interruption
  • Flood, Quake, Sewer Backup
  • Crime – including Employee Dishonesty & Broad Form Money & Securities
  • Mechanical Breakdown

Extension packages are also available for things like personal property of officers and employees, building bylaws, stock spoilage, inflation protection, plants, fire fighting expenses, and more. More details are available on our website.

Source: https://www.retail-insider.com/retail-insider/2019/2/list-of-international-retailers-that-entered-canada-in-2018-feature