The civil unrest and riots that spread across the country in 2020 had a significant impact on pawn shops. With people feeling the stress of a challenging economy and tense times, it could happen again.
“One lesson of past riots is that retail businesses are the prime targets of looters and arsonists and bear the brunt of financial loss. The businesses that are usually first attacked are liquor stores and pawn shops, and these are usually thoroughly looted.” ISO, Civil Unrest and Planning for Civil Disturbance
Lessons Learned
“What have we learned form the 2020 riots? Be prepared. It could happen. Reduce out of safe exposure. Many pawnbrokers suffered losses because they did not put their guns and jewelry in safes at night. That one simple action can make a dramatic difference.” Said Scott Sweeney, VP and Sr Sales Executive at Marshall+Sterling’s long-standing Pawn Broker insurance program.
“Barriers can make an enormous impact. Roll down doors and locks, of course, but even physical barriers – the amount of stuff in front of a safe – made a difference in looters accessing safes and goods.” Says Dianna Dahoney, VP and Regional Manager of Programs. “Marshall+Sterling experienced the claims in 2020 with our Pawnbrokers – the looting, fires, and property damage. This keeps you out of business for a time, then you must replace items stolen. It had a huge impact on the pawnshops”
According to the Insurance Services Organization, or ISO, “Among the reasons for businesses failing and not rebuilding are insufficient insurance coverage.” Marshall+Sterling helps clients obtain the coverage needed. It is also important to predict, prepare for and preempt risk. Here are some top tips from ISO:
“When riot pressures are escalating, if time permits, inventories should be reduced to a minimum. Target inventories, such as cash, jewelry, liquor, guns, drugs, and high-priced items, should be removed from display cases and windows and secured in safes or placed out of sight, and the windows protected. Steel roll-down gates have been found effective. Some stores have had notable success in averting damage by placing precut plywood boards against display windows from within the store. This has the advantage of not exposing installation personnel to street conditions.
Businesses that sell guns, ammunition, knives, and other dangerous weapons, or store firearms and explosives, must take extra precautions to assure that these materials do not get into the hands of rioters and looters.
Business Insurance
Pawn Brokers
