It is no secret that retail space has become extremely expensive to rent on a long-term basis and retailers have been left scrambling to seek alternative means to stay in business. Thanks to the growing popularity of pop-up stores, most retailers (particularly those with a niche market) have since managed to incur fewer costs when it comes to renting spaces since they’re temporary.
Also, the limited stock on offer may bring about a feeling of exclusivity to consumers, which will hopefully translate to an increase in sales!
Pop-up shops have become the new craze for consumers
While pop-up shops have undoubtedly earned their creators plenty in profit and buzz, they are certainly not immune to the more risky elements of business, something that many retailers tend to overlook.
Having the right insurance cover for your business is critical if you are looking to venture into the pop-up sphere. If you are considering opening up your own pop-up shop, you may want to consider getting these insurance policy options locked down before setting up shop:
- All-risk cover
If you’re looking to set up an unconventional retail environment, it follows that you’ll need to explore slightly less traditional forms of insurance to keep you and your store contents covered. Whereas traditional business insurance comes linked to a fixed address, the shifting geography of a pop-up shop requires something a little more comprehensive.All-risk cover enables you to keep your store and contents insured no matter where you are in the world, protecting you against amongst other perils, theft and accidental damage. While you can specify individual items, an unspecified policy is probably the best option for pop-up shop owners with items of lower value, as store contents tend to change on a daily basis.Remember that, while this option is a comprehensive one, it extends only as far as the actual contents of the pop-up shop and may need to be taken out with additional buildings, office contents or vehicle insurance to prevent any unexpected financial shortfalls.
- Liability cover
Unexpected injuries or unforeseen personal complications could quickly undo all the positive brand traction arising from your new retail centrepiece. So, to keep your company’s reputation intact and to ensure your customers remain protected, you might want to consider comprehensive broad form liability insurance, which will enable you to compensate appropriately for any accidents occurring within your retail environment.
- Goods in transit cover
If all-risk insurance sounds like an overly comprehensive option for a temporary retail push; you’d still be well advised to keep your stock safe between activations. Given the high accident rate and well-documented crime statistics in South Africa, the second your stock leaves your custody it becomes immediately susceptible to risk. Goods in transit cover enables you to enjoy peace of mind while you set up shop, keeping your goods covered against any unforeseen scenarios that might arise on the open road.
- Money cover
MiWay’s Money product also offers cover away from the risk address. Money cover is usually restricted to the risk address which is not helpful in the case of not having a fixed premise. It is important to insure that cash traded away from the policy address can be insured and MiWay offers a solution to this need.
If cashing in on retail pop-up is in your business plan this year, then it is essentially critical for you to insure your business against unconventional risks that might occur. Eliminating unnecessary financial threats will enable you to focus on your thriving business and generate product sales in 2017!