Try out these suggestions to safeguard your retail business.
If you own a retail business, then you face a wide array of commercial risks. Fortunately, there are steps that you can take to mitigate these threats. Here are some of the major risks to watch out for, and what you should do to address them.
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 their stores from being burglarized, retailers should install security systems that include alarms, sensor-based tags on items, locked display cases, and video surveillance equipment. Store owners should also train their staff to watch for telltale signs of shoplifters. For instance, shoplifters often employ tactics such as moving in large groups, creating 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, retailers should consider hiring a cybersecurity specialist to audit their system, software, and protocols. This way, retailers can learn about security weaknesses and take steps to address these vulnerabilities. Business owners are also encouraged to 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 Scautub Agency in Scotia, New York. We are ready to assist you with all your business insurance needs today.