We’re heading into the busiest time of the year for retailers and online sellers. Arguably, the holiday shopping season starts in October and ramps up as we inch toward the end of the year. That’s excellent news for retailers of all stripes selling products online and offline.
Black Friday (November 29 this year) marks the real start of holiday shopping. However, Thanksgiving and Halloween also tend to see consumers increase spending. With inflation down to 2% in Canada, consumers may be encouraged to open their wallets more frequently this year than in the past two years.
According to Statista, during the 2023 holiday season, most consumers spent an average of $2,000. Also, 40% of Canadians shopped on Black Friday last year, 37% did on Cyber Monday, and 32% bought goods on Boxing Day.
As retailers, e-commerce businesses, and online sellers aim to grow their bottom lines in the fourth quarter (October to December), now’s the time to ensure they have adequate product liability insurance to safeguard their finances from potential losses if something unexpected happens.
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What Is Product Liability Insurance?
Product liability insurance covers claims alleging third-party bodily injury or third-party property damage caused by any product you manufacture, distribute, or sell. It is recommended coverage for any business owner or online seller who sells, manufactures or distributes a product, including food.
For instance, if a customer suffers an allergic reaction from a food product you sell, or if an electronic product you sell causes property damage in a customer’s home, product liability insurance may cover the cost of these claims.
Product liability insurance is often included in a general liability insurance policy, but you can add it to your policy if it isn’t.
What Other Liability Risks Do Retailers and Online Sellers Have?
With the forthcoming holiday shopping season in mind, there are a few other liability risks retailers and online sellers should be aware of that require comprehensive insurance coverage, including:
Increased foot traffic
More customers visiting your brick-and-mortar store raises the possibility of customer injuries, such as slip-and-falls. It’s worth noting that a Zensurance survey of consumers found 69% would sue a small business owner or retailer if they suffered an injury from a slip-and-fall on their premises. General liability insurance is necessary to cover third-party bodily injuries and property damage claims.
Holding more inventory
StoStocking up in advance for the holiday rush is common for any retailer, but holding excess inventory in your store or warehouse also increases your risks, including theft, fire, and water damage that could ruin any financial gains you hope to make. Commercial property insurance covers damages to your business property, contents, and inventory caused by fire, water damage, natural disasters, theft, and vandalism.
The threat of a cyber-attack
Cyber-attacks and data breaches can happen at any time, but as October is also Cybersecurity Awareness Month, it’s worth highlighting the constant threat cyber incidents pose to online sellers, e-commerce businesses, and retailers that also sell goods online. Cyber liability insurance and cybercrime insurance are critical to include in your overall policy to help you recover from a cyber incident.
How to Get Low-Cost Product Liability Insurance
Zensurance provides low-cost business insurance to hundreds of thousands of Canadian retailers, online sellers, and e-commerce businesses.
Get started by filling out our online application for a free quote in less than five minutes. It’s that simple.
Our experienced team of brokers can help you obtain the low-cost coverage you need, advise you on the coverage limits you should have, and most importantly, provide you with the peace of mind that your business’s finances are protected.
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