Shopping centers and Strip Malls can include a wide variety of configurations. We’ll outline an insurance program for the common shopping plaza, strip shops and small malls for the property owner.
As a general rule, the biggest exposure to loss is the injury of customers. Since there is a risk of a large number of people being severely injured (fire in stores or common areas), very high limits of insurance are recommended. The primary liability coverage is found in the commercial liability insurance policy. If a facility employs security personnel, they have a higher than usual exposure to loss from making physical contact with visitors to the facility. This exposure arises when someone is injured while the security personnel must physically remove someone from the premises for the safety for others. This can be a difficult exposure to insure. Many standard commercial leases require the tenant to secure public liability insurance and name the landlord as an additional insured. While this is a great practice, it cannot eliminate the need for the landlord to obtain his own insurance.
High limits of liability insurance are available under an umbrella liability policy.
Owners often have very valuable buildings and site improvements. The most common approach is to insure the buildings, any contents owned by the landlord and loss of rents (Business Interruption Insurance) on the commercial property insurance policy. Some insurance companies will issue a Business Owners type policy to shopping center owners (see retail stores on this website). One special area of concern to shopping center and strip mall owners is the Business Interruption Insurance. The Business Owners policy limits the coverage to a 12 month period. It is likely that a shopping center will not be able to reopen within 12 months after a loss, or that the rents are reduced after a loss, so the 12 month coverage provided by the Business Owners policy may not be enough. Site improvements (parking lots, drainage, recharge basins, curbing, etc) can represent a large investment by the owner. They can be damaged by vandals, earthquake, vehicles, fire and floods. Insuring the value of this property can be included in some programs.
Anderson Insurance Agency has been insuring Shopping Centers and strip malls since 1967. We represent some of the most respected insurance companies in New Jersey. Click here to request a quote or click here to contact us.
Many facilities have mobile equipment for maintenance of the premises (lifts, fork lifts, lawn maintenance equipment, etc). An Inland Marine Insurance policy can cover the loss of this type of equipment. If any of the equipment crosses public roads or has a license plate, separate liability insurance may be needed.
Shopping Centers and strip malls often include extensive glass fronts. Special attention must be paid to covering this property. Many standard commercial leases include a provision that the tenant will insure the glass and pay for its replacement no matter how it is damaged. If there is no tenant, the owner will need to purchase their own glass coverage.
Employee Dishonesty coverage may be needed to protect against loss when an employee steals money from the employer.
Shopping centers and strip malls often offer signage to the tenants. This can be a large investment and the shopping center should have specific sign coverage.
Commercial Automobile Insurance is almost always needed. Even if the shopping center does not own autos, someone may use their auto on behalf of the store and that in it’s self, generates the need for automobile insurance.
If you have employees, you will need Workers Compensation Insurance to comply with the legal requirement of the workers compensation law.
If you are located in any area that has a risk of flooding, you will need a separate flood insurance policy for the building and contents.
Employers should consider purchasing Employment Practices Liability Insurance to cover them for suits from employees alleging wrongful termination, sexual harassment, failure to hire, failure to promote, non-compliance with the Americans with Disabilities Act, and other similar employment actions. This policy will pay the cost of defending an alleged wrongful act. That benefit in itself, makes this a very valuable insurance policy.
If you offer any benefit plans to your employees you should consider purchasing Employee Benefits Liability Insurance.
You may have an exposure to pollution. This exposure can only be assessed after a careful review of your operations. In many cases, coverage will not be available for this risk. The only option may be to implement a program to minimize the risk as you cannot completely avoid the risk and run a business. Liability coverage is readily available for underground and above ground storage tanks. Site pollution insurance may be available depending on your operations and exposures.
Anderson Insurance Agency has been insuring Shopping Centers since 1967. We represent some of the most respected insurance companies in New Jersey. Click here to request a quote or click here to contact us.