Retail Resilience

Adding the AFM Retail Endorsement to the proVision 4100 policy will give you and your clients peace of mind with specialized coverage.

RetailRetail clients operate in a highly competitive and ever-evolving business environment. Today, consumers are more educated and have more choices, so retailers must focus on consistently providing the best value and shopping experience for their customers.

However, retailers are faced with unique exposures, and even a small disruption in their ability to operate or maintain adequate levels of stock could result in a significant loss of business. By adding the AFM Retail Endorsement to the proVision 4100 policy, retailers will enjoy the following valuable coverage:

  • Change of Temperature
  • Removal and Restocking
  • Valuation

How coverage applies
To help you better understand how our unique Retail coverage will apply in the event of a loss, we’ve developed the following brief examples.

Change of Temperature: This clause expands on the coverage in the core proVision 4100 form. Retailers, such as supermarkets and grocers, may have stock that is perishable. A small interruption of services, or even something as simple as an employee leaving a cooler door open, may cause a total loss of stock. For spoilage to be covered, most insurance policies require physical loss or damage to take place at the location, which then results in spoilage. And even if spoilage does occur, it may be limited by the Boiler and Machinery spoilage limit. AFM’s change of temperature clause includes coverage resulting from an accidental event, not just physical loss or damage.

Example: A third-shift employee at a local supermarket leaves a dairy cooler door open after restocking it. The stock warms over night and can no longer be sold. This accidental event is something that will be covered under the proVision Retail Endorsement.

Removal and Restocking Expense: This extension covers restocking expenses when complying with the recall of a product the insured sells. The recall must be required by the product’s manufacturer or by a governmental authority.

Example: A large appliance chain just received brand new appliances from a major supplier. One of the ovens needs to be recalled due to an issue that could cause a fire while the oven is pre-heating. The costs associated with pulling all the ovens out of the insured’s stores and warehouses would be covered.

Core Coverage
In addition to the retail-specific property coverages, the proVision 4100 offers other extensions of coverage that retailers find valuable. Some examples include:

  • Supply Chain Coverage: Covers a time element loss resulting from an event at the insured’s direct and indirect suppliers and customers, truly protecting retailers entire supply chain.
  • Logistics Extra Cost: Extends additional coverage when there is a disruption of the normal movement the insured’s goods or materials.
  • Crisis Management: Provides business interruption coverage when a retail location is inaccessible as a result of civil authority due to a violent crime, suicide, etc.
  • Attraction Property: Covers retailers for loss of business income due to physical loss or damage to property that attracts business.

Re-tailored coverage
At AFM, we believe that our retail owner clients should have access to world-class insurance coverage, engineering services and claims personnel. That’s why we designed the proVision 4100 platform and retail endorsement to respond to the specific needs retailers face. If you would like to learn more about the coverage and contract certainty the proVision 4100 policy extends, please see our Retail Endorsement Brochure or contact your production underwriter.

Note: This information does not constitute, replace or supplement policy language. The liability of AFM is limited to that contained in its insurance policies.