For most of us retail therapy is an enjoyable or sometimes a boring necessity, each year though shoppers suffer unfortunate accidents whilst shopping. Just last year the New South Wales District Court ordered Coles to pay $293,000 to a man who had slipped and fallen in their supermarket. The court found that Coles had failed to uphold their duty of care to the customer and were ordered to pay damages which included past and future out-of-pocket expenses and future loss of earning capacity. Cases such as these highlight the need for retailers to keep their environment as risk-free as possible.

Retailers of all sizes and types, property owners and managing agents, have an obligation to keep the property in a safe condition and can be held to be liable:

  • if they know of a danger and fail to eliminate it
  • if they create hazards
  • if they know of a hazard
  • if they fail to take steps to avoid a hazard

Retailers should be aware they may need to be a licensed retailer requiring a licence from the respective government authority to operate. All retailers must ensure they follow safety and manufacturer data sheets, for instance this could be manufacturer guidance such as keeping the product out of reach of children.

As a business you will need to have a process for assessing risks, and adhering to health and safety policies. This will include having systems and procedures in place for cleaning and housekeeping to prevent an accident taking place.  This helps to protects against civil claims and criminal prosecution and will also protect your brand reputation.

In addition to this you can look to transfer your risk by taking out Public Liability Insurance. Whether you are a small retailer selling giftware, through to a coffee shop or supermarket, you can protect your business and your customers against claims for personal injury or property damage, including slips, trips and other mishaps caused by your business activities. It’s also important to ensure you have the appropriate product liability cover to protect against injury caused by the products you sell.

If you are starting out in a retail business, a good tip to know is that many landlords may require a tenant to hold not only Public Liability insurance, but potentially some Accidental Damage cover for internal aspects of the building being leased, as well as for instance Glass insurance before signing a lease.

Public Liability insurance will cover your legal and defence costs, as well as any compensation that is payable, so you can continue focusing on your business.

If you would like to talk through the various Public Liability strategies, and how they position in relation to your business activities, feel free to call Mitchell Insurance Management on 02 6113 0478 or contact us. We would enjoy the opportunity to talk through your potential business risks and propose appropriate solutions that fit and could support your business going forth.

The information contained in this blog provides only a general overview of subjects covered. It is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. Insureds should consult Mitchell Insurance Management regarding specific coverage issues. All insurance coverage is subject to the terms, conditions, and exclusions of the applicable individual policies. Mitchell Insurance Management cannot provide any assurance that insurance can be obtained for any particular client or for any particular risk.