DISCLAIMER: This is only a brief overview of general coverage issues. Actual coverage is determined by the coverage terms, definitions, and exclusions in each individual insurance policy.
Most Common Losses for Fabricare Businesses
As the premier insurer to the fabricare industry, NIE can tell you that our most common claim is generated from loss to clothing. And the most common cause of loss to clothing is water damage. Surprised? Well, think about it. There are many ways that water can ruin clothing. Some examples are leaking roofs and ceilings, leaking pipes, broken hoses, flood, sewer back-up and sprinkler leakage. And, by the way, these are all covered causes of loss on an NIE policy as long as the leakage has not been an ongoing problem. We will pay what it takes to re-clean the clothing or pay your customers the fair value of any clothing that cannot be re-cleaned.
After water damage, theft of clothing is a close second. Sometimes employees steal clothing but most often they are stolen during a burglary. We also have clothing stolen from vans and occasionally the whole van is stolen with the clothing in it. Unfortunately, when clothing is stolen it is usually never recovered. That’s when you need to have your insurance carrier step in and pay your customers’ claims. What? You don’t have coverage for customers’ clothing? You need it right away.
Fortunately, the most infrequent cause of loss to clothing is fire. But when it happens, it is a major part of the fire loss in terms of the volume of customers that need to be appeased and the value of the clothing. It is most important for you to keep a set of records/tickets off-premises in case of fire. If you are computerized be sure to back-up daily and take the back-up home. That way you and your insurance company know exactly what was in your store and who it belonged to at the time of the loss.
We have also seen damage to buildings that occurred during the night and the driver simply left. This often happens in a drive-through or at the corner edge of a building. When this happens I often wonder what damage the vehicle sustained and how the owner will explain it to his insurance carrier, if he has one.
Outside you may have stairs, concrete walks, parking lots, parking stops, etc that can also be trip hazards if they are allowed to deteriorate. So be sure to maintain them regularly.