Insurance

S.A.C.I. Falabella and its subsidiaries maintain insurance contracts with world-class insurance companies, which adequately protect its assets against the risks of loss or damage. The assets under coverage include buildings, inventories, facilities, vehicles, machinery, and the storage and freight of products for sale. Insured risks expressly include fire and acts of nature such as earthquakes. The property insurance policy also contemplates damages for business interruption. Other policies provide adequate coverage for the Company’s third-party civil liabilities and other insurance coverages that are standard for the industry.