Retailers, Consider a Peak Season Endorsement for the Holidays

Scenes of the Season: Protecting Property

To make holiday shoppers’ sugarplum dreams come true, many retailers expand their inventory almost as dramatically as Santa’s gift stash grows the night before his big trip. Enter the peak season endorsement.

Santa Claus attacking elf with an oversized candy cane

In the classic holiday movie Elf, Buddy realizes the Santa visiting children in a New York City department store is a fake and his moral outrage skyrockets faster than a caffeinated Comet. The ensuing brawl with the called-out Imposter Claus sends store decorations and displays crashing, while parents and wish-list-bearing kids gape from the sidelines.

While it’s unlikely many stores will encounter an elf-vs.-Santa throwdown, fights are just one exposure that could put a serious dent in the bottom line during the busy holiday retail season. Other risks include fire, water damage from sprinklers or broken pipes, theft and vandalism.

Peak season endorsement

Businesses can plan for the increased exposures they face during the holidays by considering the addition of a peak season endorsement to their property coverage, says Andy Hendrix, senior vice president, head of U.S. Property.

“Peak season inventory is an exposure inherent in the holidays that probably insureds don’t necessarily account for,” Hendrix says. “Department stores and commercial exposures carry larger inventory values during the holiday season. Are they adequately increasing their lines of insurance to account for those exposures?”

Source: The National Retail Federation

Some retailers have peak season inventory coverage that automatically increases their coverage during certain months, Hendrix notes.

“If there were a fight that triggered a fire or something caused a pipe to break or a sprinkler system to go off and water rained down on millions of dollars of inventory, all of that is covered,” he says.

Brokers should consider their clients’ needs and check in with them to make sure they are thinking about how their holiday season exposures compare to normal operations.

Learn more about Argo Property.