Civil Unrest Precautions for Pawnbrokers and Check Cashers

Risks and threats develop in un-foreseen circumstances and while our primary role at Marshall & Sterling is to support our clients with a solution for when things do go wrong, we also look to provide advice and support to aid in protecting our clients and allowing them to be proactive in the event of a threatening situation.

The Pawnbroking and Check Cashing Industries are somewhat on the frontline of civil rioting and commotions as it attracts looters and rioters. It is vitally important that we do all we can to manage the risks and for that reason, we would like to provide the following advice:

• Open lines of communications with local check cashers and pawnbrokers to inform each other of threats that could be in the area/approaching.
• Remain informed with local news for the "heads up" on any developing situations.
• Establish procedures to be put in place in the event of a threat, (i.e. contact authorities and security providers, lock away the available goods, inform local check cashers and pawnbrokers and most importantly protect colleagues and employees).
• Inform staff of the importance of staying vigilant during operating hours, and any new protocols when locking up.
• It is recommended that windows and shopfronts are covered/boarded up/reinforced where possible, as they make an easy point of entry for opportunistic looters (and this should deter looters and increase the length of time it may take them to penetrate the premises.)
• You may have to ask for permission from the building owners to implement the above reinforcements.
• It is important to try and retrieve goods that are out on Memo, especially to frontline retailers or at least be in communication with these parties to see how they are planning on mitigating potential losses. This should be done whenever there is potential of a civil commotion in the area. If it is not practical to receive goods back then insist that they keep your stock locked in their safes at all times until you believe the situation has calmed. Keep the lines of communication open with your clients.
• Minimize the amount and value of goods left out of safe, out of hours.
• Consider whether you can move some of your inventory to a bank vault (contact your insurance broker to check whether you have coverage in bank vaults and for the movements to the bank).
• Reduce values in your windows and showcases during the day - keep more in your safe.
• Remove goods from show windows and showcases outside of operating hours.
• Discuss a continuity plan with your broker and insurers if your building is too severely damaged to safely work from. Whilst there will not be any coverage at any other location until pre­-agreed by your Insurers your broker can advise how best to proceed.

It is important to understand that the information provided above is not exhaustive and should be considered along with information from local authorities, government advice and feedback from Security agencies. Please also note that any changes to the security and protections to your premises, which were advised to your Insurers at inception, which might be material information, should be notified to your Insurance Broker and Insurers in advance.

Information is material if it would influence the judgement of a prudent Insurer in establishing the premium or determining whether to underwrite the risk. Material information does not necessarily have to increase the risk of the insurance under consideration.

No matter what side you're on, our team is here for you and your business. Please reach out to us with any and all of your insurance related questions as we navigate this changing landscape.