With Black Friday and Cyber Monday looming on the horizon, insurers are keeping a keen eye on risk in the retail industry. Black Friday is the most important shopping day of the year and, in many ways, the most important day of business for most retailers. The famous deals offered during Black Friday have never failed to draw masses of shoppers to stores. When so many people gather in one space, accidents are almost unavoidable. With insurers falling under more scrutiny in recent months, they have begun warning retailers to take extra precautions when it comes to the safety of shoppers.
One of the main issues that insurers foresee becoming a problem is the current mayhem in the nation’s supply chain, especially where imported goods are concerned. Recent storms have put the supply chain along the East Coast and north under extreme duress. If stores do not have the items they have been advertising by the time shoppers arrive, there may be major problems as tempers flare on a day when tempers are already stretched too thin.
In an attempt to gain an advantage on managing the risk associated with retail stores during this season, insurers are now warning retailers to prepare for the worst case scenario. Appropriate preparation can mitigate the problems that may arise during Black Friday and will reduce insured losses. There are circumstances that one simply cannot prepare for, however, and insurers may end up paying for the rabid shopping spree of Black Friday.
