Common Retail & Strip Mall Insurance Risks

Premises Liability

Retail properties have a constant flow of customers, employees, tenants, vendors, delivery drivers, and visitors.

Common liability exposures include:

• Slip-and-fall claims

• Parking lot accidents

• Sidewalk injuries

• Snow and ice exposures

• Injuries in common areas

• Falling objects

• Property damage

• Claims involving tenant or contractor activities

For a strip mall owner, liability doesn't necessarily stop at the walls of the individual tenant spaces.

Parking lots, sidewalks, entrances, landscaping, lighting, and other common areas can all create potential exposures.

Snow & Ice Liability

For properties located in areas with significant winter weather, snow and ice can be a major liability concern.

Parking lots and sidewalks may become hazardous due to:

• Snow accumulation

• Ice

• Freezing rain

• Refreeze conditions

• Poor drainage

• Improper snow removal

• Inadequate lighting

Lease agreements may assign certain responsibilities to tenants or contractors, but property owners should understand how those contractual responsibilities interact with their insurance program. Having a broker who can advise you on property risk transfer is critical. 

Property Damage

Retail properties can represent a substantial investment.

Potential property losses can include:

• Fire

• Wind

• Hail

• Water damage

• Roof damage

• Vandalism

• Theft

• Equipment breakdown

• Other covered causes of loss

A proper property valuation is important—but so is understanding the coverage form, deductibles, exclusions, valuation provisions, and catastrophe limitations that apply to the property.

Tenant-Related Exposures

A multi-tenant property creates an additional layer of complexity.

Different tenants can have dramatically different operations and risk profiles.

A property may include:

• Restaurants

• Salons

• Fitness centers

• Medical offices

• Professional offices

• Retail stores

• Convenience businesses

• Service businesses

• Specialty retailers

The activities taking place inside the building can affect the overall risk profile of the property.

That's why we look beyond the building itself and consider who occupies it and what they do.

Business Income & Rental Income

For a commercial property owner, a serious loss can affect more than the physical building.

If a covered loss makes tenant space unavailable, the property owner may experience a reduction in rental income while repairs are being completed.

Appropriate business income or rental value coverage can be an important component of the property insurance program.

The amount and structure of coverage should reflect the property's actual financial exposure.

Building Systems & Equipment

Retail properties often rely on systems that can be expensive to repair or replace.

These may include:

• HVAC systems

• Electrical systems

• Plumbing

• Boilers

• Elevators

• Pumps

• Refrigeration

• Other building equipment

Equipment breakdown coverage can address certain mechanical and electrical failures that may not be covered under a standard property policy.

Water Damage

Water losses can create significant damage in multi-tenant buildings.

Potential sources include:

• Plumbing failures

• Frozen pipes

• Roof leaks

• Sprinkler systems

• HVAC systems

• Water heaters

• Sewer or drain backups

A water loss can affect multiple tenant spaces simultaneously, creating both property damage and business interruption concerns.

Signage & Exterior Property

Retail properties often rely heavily on exterior signs, awnings, lighting, landscaping, fencing, and other improvements.

Damage to these items can create repair costs and potentially disrupt tenants and customers.

We review the property program to determine whether these exposures are appropriately addressed.