Shopping Centers and Retail Stores
The owner(s) of shopping centers and malls provides useable space and "essential services" to retail store tenants. The tenants usually define "essential services" to include such things as heat, air conditioning, and ventilation as appropriate, electrical power, and a reasonable measure of security. Shopping center and mall operations are completely dependent upon equipment to supply these services. If the owner cannot provide all of the services the tenants define as essential, the tenants may withhold rents and/or void the lease.
Business interruption / income exposures can be substantially increased if equipment accessibility is limited, if a single large unit is used instead of multiple smaller units, or if there is no installed spare capacity.
Retail establishments must attract and hold their customers if they want to make the sale. The owner is usually completely dependent upon the building owner to supply the services they need, so an equipment breakdown to the building owner's equipment can cause a business interruption to retail store owners / operators. A modern retail establishment uses a full range of equipment including electrical panels, cash registers, multi-line telephone systems, security cameras and systems, computer based inventory systems and commercial grade sound systems.
© 2004 The Hartford Steam Boiler Insurance and Inspection Company.
All rights reserved.