Grocery Risk Management

MFGunderstands the unique demands and exposures for grocery stores and their owners. Our service platform for the Retail Grocery Store sector tailors a program designed to fit your unique needs. For your risk transfer resource, contact a MFG risk consultant for more information about developing or enhancing your risk management program. Grocery stores sell a variety of foodstuffs, either fresh, frozen, bottled, or canned. Items can be prepackaged or bulk. Some produce baked goods; some prepare salads, rotisserie chickens, or heat-and-eat meals. There may be delicatessens or fresh fish or meat cutting. Many grocery stores sell an assortment of nonfood items such as greeting cards, lottery tickets, over-the-counter medications, household disposable and cleaning items, liquor products (where permitted), tobacco, cooking utensils, handheld tools, auto maintenance items, light hardware items, clothing or novelty items. Services offered may include U.S. Postal substations, pharmacies, branch banks, shoe repair, video rental, and sales of gasoline and fuel oil.

MFG Insights

    Property exposures are substantial from electrical wiring, cooking equipment, and refrigeration units. The wiring must be current and up to code. If there is cooking on premises, the cooking and heating equipment may overload. Refrigeration equipment may overheat, or ammonia may explode. All equipment, especially refrigeration units, should be well maintained and in good condition. All grills and deep fat fryers must have automatic fire extinguishing protection, hoods and filters. There should be fuel shut offs and adequate hand-held fire extinguishers. The kitchen must be kept clean and grease free to prevent the spread of fire. The storage and disposal of boxes, packaging, and wrappings can add significantly to the fuel load of fire if not handled properly. If there are any on-premises incinerating devices to burn or dispose of combustible waste, the age, condition, maintenance, and controls are key.

    Spoilage exposure is very high. A small fire or a power outage of even moderate duration can cause all fresh and frozen goods to be condemned as unfit for consumption or sale. Alarms and warning devices should be in place to alert the operation to loss of power. Backup power, such as a generator, should be available. Theft is also a concern. Appropriate security measures should be in place, such as keeping more expensive meats behind glass and inaccessible to customers and having security mirrors prominently displayed throughout the store. Premises alarms should report to a central stations or police department after hours.

    Premises exposure is very high due to public access to the premises. Slips, trips and falls are major concerns, especially during inclement weather when customers track snow, mud, and water into the facility. Customers drop items in the produce area and may carry food and other items throughout the store, generating spills that can result in slips and falls. Housekeeping should be excellent and spills must be cleaned up promptly. Floor coverings must be in good condition, with no frayed or worn spots on carpet and no cracks or holes in flooring. Steps and uneven floor surfaces should be prominently marked. There should be well marked sufficient exits, with backup lighting systems in case of power failure. Parking lots and sidewalks need to be in good repair, with snow and ice removed, and generally level and free of exposure to slip and falls. Customers can be injured or killed during a robbery. Security of visitors in parking areas is rapidly becoming the responsibility of the owner or operator of the premises. Outdoor security and lighting must be consistent with the area.

    Additional exposures to consider evaluating with our risk consultants are: Products, Crime, Inland Marine, Liquor, Automobile and Workers Compensation.

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