Retail & Service

1. Retail & Service

2. TWFG Commercial Business SchoolRetail & Service Learning Objectives Become more familiar with business segments of Retail Stores, Business Services, and Personal Service To understand the common risk exposures for all lines of coverage To understand what carrier Enhancement Forms are, and how they tie into the selling of this business segment

3. TWFG Commercial Business School Retail & Service Glossary NFPA: National Fire Prevention Associatation Bailee Coverage

4. TWFG Commercial Business School Retail & Service Exposures in General General Liability Property Premises Premises Products Employee Dishonesty Operations Bailee Coverage

5. TWFG Commercial Business School Retail & Service Exposures in General Automobile Workers Compensation Usually incidental Highly recommended Needed for delivery 1 claim can force bankruptcy

6. TWFG Commercial Business School Retail & Service Exposures in General EPLI Cyber Liability Wrongful termination Disclosure of Private Info Discrimination Regulatory Expenses Small Minimum Premium Network Damage

7. TWFG Commercial Business School Retail & Service Exposures in General More on Cyber Liability Needed for any business that utilizes electronic payment methods Minimum Risk Controls that must be in place: Anti-Virus Special protection in place for insured’s with Internal Networks

8. TWFG Commercial Business School Retail & Service Exposures Example: Automobile Accessories Store SIC Code: 5531 Auto and Home Supply Stores NAICS Code: 441310 Automotive Parts and Accessories Stores 441320 Tire Dealers Suggested ISO General Liability Codes: 10071 Suggested Workers Compensation Codes: 8046, 8380

9. TWFG Commercial Business School Retail & Service Exposures Example: Automobile Accessories Store Description of Operations: Automobile accessories stores sell a wide range of retail and wholesale auto parts and supplies for repair and replacement. Some automobile accessory stores have machinery operations to repair or rebuild parts such as brake drums or to custom-make old, difficult-to-replace parts. Other operations may include repair services, facilities to repair your own vehicle, rental of tools and equipment, and tire replacement operations. Used and rebuilt parts may be available as stock. Some specialize in foreign parts. Many stores are part of a franchise, chain, or purchasing group.

10. TWFG Commercial Business School Retail & Service Exposures Example: Automobile Accessories Store Typical Exposures: Property Products Liability Crime Automobile Liability Inland Marine Workers Compensation Premises Liability

11. TWFG Commercial Business School Retail & Service Exposures Example: Automobile Accessories Store Minimum Recommended Coverage: BPP General Liability Business Income Employee Benefits Employee Dishonesty Umbrella Money & Securities Auto Liability & Physical Damage Accts Receivable Hired/Non-Owned Auto Computers Workers Compensation Valuable Papers & Records

12. TWFG Commercial Business School Retail & Service Exposures Example: Automobile Accessories Store Other Coverages to Consider: Building Installation Floater Leaseholder Interest Signs Real Prop Legal Liability Employment Related Practices Forgery Garage-Keepers Computer Fraud Cyber Liability

13. TWFG Commercial Business School Retail & Service Additional Exposures Examples: Bicycle Shop Furniture Store All 3 Exposures Examples are available on the Branch & GA websites Additional Exposure Analysis’s can be built in Silverplume or the VRC

14. TWFG Commercial Business School Retail & Service Intro to Business Income Coverage Definitions: Business Income Extra Expense Suspension Period of Restoration

15. TWFG Commercial Business School Retail & Service Intro to Business Income Coverage Business Income Pays: 1. Net Income that would have been earned and 2. Continuing normal expenses, including payroll 3. For actual loss you sustain due to a necessary suspension of operations during the period of restoration.

16. TWFG Commercial Business School Retail & Service Intro to Business Income Coverage Covered Extra Expenses include those incurred to: 1. Avoid or minimize the suspension of operations at the insured’s location 2. Minimize the suspension of business if you cannot continue operations 3. Costs to repair or replace property, but only to the extent that it reduces the BIC or EE that would be incurred

17. TWFG Commercial Business School Retail & Service Carrier Enhancements

18. TWFG Commercial Business School Retail & Service Carrier Appetite All of our major carriers have a broad appetite for: Retail Personal Service Business Service

19. TWFG Commercial Business School Retail & Service Preferred SIC Codes Support Document Located on the Branch & GA websites

20. TWFG Commercial Business School Retail & Service Submission Checklist A submission checklist is the easiest way to ensure that all exposures have been accounted for and addressed Support document is available on the Branch & GA websites

21. TWFG Commercial Business School Retail & Service Case Study This segment includes a Case study. For those Branches participating in the Certified Commercial Branch Agency (CCBA) Program you will need to complete and pass in order to receive credit for this segment. For Branches not participating, the Case Study is optional For GA agents the Case Study is optional. The Case Study material will be available on the Branch and GA portals RETURN COMPLETED CASE STUDIES TO MARK GLAUG @ mglaug@twfg.com

22. TWFG Commercial Business School Retail & Service QUIZ

23. TWFG Commercial Business School Retail & Service 1. Most retail stores have Premises as the primary GL exposure. What other types of operations could present different GL exposures? Think of furniture stores, appliance stores and flooring stores.

24. TWFG Commercial Business School Retail & Service • Most retail stores have Premises as the primary GL exposure. What other types of operations could present different GL exposures? Think of furniture stores, appliance stores and flooring stores. Other operations might include installation (operations and completed operations), delivery (operations).

25. TWFG Commercial Business School Retail & Service 2.What special type of Property coverage is needed for businesses that take custody of customers’ property for service or repair, and what’s the recommended coverage option?

26. TWFG Commercial Business School Retail & Service • What special type of Property coverage is needed for businesses that take custody of customers’ property for service or repair, and what’s the recommended coverage option? Bailee’scoverage, a type of Inland Marine coverage is what is needed. Having the coverage apply on a primary basis without regard to legal liability is recommended.

27. TWFG Commercial Business School Retail & Service 3. Name 2 “add-on” coverages that should be offered on most retail/service accounts. (There are 4)

28. TWFG Commercial Business School Retail & Service • Name 2 “add-on” coverages that should be offered on most retail/service accounts. (There are 4) 1. Employee Dishonesty 2. Employment Practices Liability (EPLI) 3. Cyber Liability/Data Breach 4. Workers Compensation.

29. TWFG Commercial Business School Retail & Service • What is the NFPA, and how does it relate to the property exposures of a furniture store or bicycle shop?

30. TWFG Commercial Business School Retail & Service • What is the NFPA, and how does it relate to the property exposures of a furniture store or bicycle shop? The NFPA develops national safety standards and codes for fire, electrical and hazardous materials. Flammables used in furniture store or bicycle shop operations would need to be stored in NFPA approved metal cabinets with proper separation. Oily rags would need to be disposed of/stored in self-closing metal containers.

31. TWFG Commercial Business School Retail & Service • If the insured is a tenant, what do you need to know regarding the square footage of the occupied building?

32. TWFG Commercial Business School Retail & Service • If the insured is a tenant, what do you need to know regarding the square footage of the occupied building? 1. The total square footage. 2. The square footage occupied by the insured 3. Total occupied (or total vacant) square footage or % of total square footage.

33. TWFG Commercial Business School Retail & Service • When does the period of restoration begin for Business Income?

34. TWFG Commercial Business School Retail & Service • When does the period of restoration begin for Business Income? 72 hours after a covered loss.

35. TWFG Commercial Business School Retail & Service • What is the primary purpose of Business Income Coverage?

36. TWFG Commercial Business School Retail & Service • What is the primary purpose of Business Income Coverage? To provide continued expected net income and to cover normal operating expenses during a suspension of operations due to a covered loss.

37. TWFG Commercial Business School Retail & Service • What does Extra Expense cover?

38. TWFG Commercial Business School Retail & Service • What does Extra Expense cover? Necessary additional expenses incurred during the period of restoration that would not otherwise have been incurred.

39. TWFG Commercial Business School Retail & Service • Give an example of an Extra Expense.

40. TWFG Commercial Business School Retail & Service • Give an example of an Extra Expense. Temporarily relocating operations in order to continue doing business.

41. TWFG Commercial Business School Retail & Service Questions???