Retail clients are exposed to many property perils. Stores often need to be located in areas where people live, exposing them to a variety of natural disasters. Retail goods are often highly susceptible to smoke or water damage, which can turn smaller losses into much larger ones.
AFM works with clients to prevent loss; however, losses do happen. When a client does have a loss, we work with them to learn from it and take steps to help prevent it from recurring.
Read more to see how a retail client experienced a winter storm and how plans were made to reduce the severity of any future events.
A retail grocery client in the northeast United States suffered business income losses when a winter storm disabled their power supply. Afterwards, they met with their AFM account engineer to devise an emergency response plan to keep their grocery stores operating in the event of another power outage. In addition, they purchased backup generators for some stores and contracted with a freezer truck company to protect perishable food in others.
It didn't take long for the plan to be put to the test. During the next hurricane season, as a storm made its way up the East Coast, the client began executing the plan, instructing store managers to secure outside property, clear roof drains and notify their arranged contractors. They also staffed a help desk to assist store personnel with any difficulties processing payments. They tested their backup generators and queued up the freezer trucks.
Ultimately, the hurricane delivered 117-kilometre-per-hour (73-mile-per-hour) winds and 14 centimetres (5½ inches) of rain, leaving more than 400,000 homes and businesses without power for over a week.
Fortunately this client was well prepared. A few hours after the storm passed, the grocery stores reopened their doors for business. Because many competing stores were not as well prepared, the grocer enjoyed a sales boost from customers needing to replenish their food supplies.