Retail Insurance Cost Analysis: How Much Is Store Insurance?
Sample Insurance Quotes for Retail Stores

When you talk about “store insurance” you’re really referring to many different things – Property Insurance, Liability Insurance, and Workers’ Compensation Insurance – and the prices of these policies vary depending on your store’s specialty, size, and inventory.

This cost analysis digs into those numbers. We’ll go policy by policy and look at how costs vary for retailers, but first, we’ll start with the big picture. Regardless of policy type or business type…

  • The average cost of store insurance is $835.
  • The median cost is $512.

Think of this as a rough “back of the envelope” number you can use to budget for your insurance. But it also shows the range of prices you could see in an insurance quote.

The median cost (i.e. what someone right in the middle of the pile pays) is only $512 dollars, or about $43 per month. Of course, the most accurate way to get an idea about your potential insurance costs will come from looking at an actual insurance quote.

If you're interested in a more nuanced look at how much retail insurance costs, prepare yourself. In this page, we have more detail than you may have wanted. We'll look at what different stores pay, how many policies they buy, and which ones they get.

Or if you’d prefer, check out pricing details for some of the specific retailers we serve by clicking the links below.

What Retailers Buy

What Insurance Policies Do Retail Stores Buy?

How Many Policies Do Retailers Get?

Ninety-four percent of our customers purchased a single business insurance policy, but that number is a little misleading. It’s not that retailers only get one policy for their store. It’s actually that they often buy a “combo” policy called a Business Owner’s Policy, or BOP.

BOP Insurance, which half of stores buy, is actually a two-part policy that includes General Liability Insurance (for customer slip-and-fall injuries) and Property Insurance (for inventory and store coverage).

Which Insurance Policies Do Retailers Choose?

The most popular policy for retail businesses is the BOP, which is popular in part because of its dual coverage, but also because it generally comes at a discount (the same kind you get when you bundle Internet and cable).

You’ll notice that only 10 percent of businesses get Workers’ Compensation Insurance. That number is suspiciously low. In reality, many more retailers get Workers’ Comp because it’s required by states. Why is the number so low? It’s possible that, when retailers come to us, they haven’t yet hired their first employee.

General Liability Insurance?

How Much Is General Liability Insurance for Retailers?

On average, retailers pay around $525 per year for General Liability Insurance ($524.79 to be exact), but keep in mind that the cost of a policy varies based on the limits chosen. Insurance isn't one size-fits-all. There are small, medium, and large policies. So let’s look at how much different levels of coverage cost.

What General Liability Policy Limits Do Retailers Choose?

For small businesses, General Liability Insurance limits range from $1 million to $4 million. But the most common policy (as we mentioned above) is $1 million / $2 million.

What General Liability Limits Do Retailers Choose?

What Do Retailers Pay for General Liability Insurance by Policy Limit?


Compared with other businesses, retailers actually pay less than average for a $500,000 / $1 million General Liability Insurance policy.

  • Average cost for retailers: $428.40.
  • Average cost for all small businesses: $580.49.


Retailers pay almost exactly the amount the average Insureon customer pays for a General Liability Insurance policy with $1 million / $2 million limits.

  • Average cost for retailers: $591.13.
  • Average cost for all small businesses: $591.45.

Of small retailers, e-cigarette shops by far pay the most for GL, averaging $711.11 per year with a range from $600 to $850. Florists tend to pay the smallest amount averaging $421.20/year with a range from $350 to $439.68.

Of small retailers, e-cigarette shops by far pay the most for GL, averaging $711.11/year with a range from $600 to $850. Florists tend to pay the smallest amount averaging $421.20/year with a range from $350 to $439.68.

Business Owner's Policy?

How Much Is a Business Owner's Policy?

Half of the retailers that buy insurance through Insureon end up getting a Business Owner’s Policy, which costs on average $965.29, which is about 25 percent more than what the average small business pays. Why is that?

Think about your store. Because you have inventory, equipment, and lots of property, your BOP costs may be higher than another business’s. Compared to a web developer, for instance, you have lots more stuff to insure.

Because of half of a Business Owner's Policy is Property Insurance, your BOP costs may be higher than those of a typical business.

Among retailers, food and beverage stores (including grocery stores) pay the most for a BOP, averaging $1,326.71 per year, with a range from $313 to $6,531.

Workers' Compensation Insurance?

How Much Is Workers' Compensation Insurance for Retailers?

Approximately 10% of customers who buy retail store insurance through Insureon buy Workers' Compensation Insurance.

On average, retailers pay $1,430.49 per year, covering an average of 3.27 employees per retailer. That comes to about $432.60 per employee.

Retailers pay more for Workers' Compensation insurance than the average Insureon customer, both in total annual expenses and, to a lesser degree, in per-employee expenses. The average cost per year for Workers' Compensation Insurance across all small businesses served by Insureon in 2014 was $656.78, and the average cost per employee for all small businesses was $401.17.

Of retailers covered by Insureon, clothing stores tend to have the lowest average number of employees and to pay the highest amount per employee. Learn more at the clothing store costs and quotes page.

Read Retail Workers Susceptible to Top Workplace Injuries of 2014.

Grab-n-Go Information

Retail Risk eBook
Data Breaches & Retail: A Guide for Small-Business Owners
Browse eBook
Sample certificates
See a sample Certificate of Liability Insurance, the proof of coverage you need for most contracts.
View Sample
Sample Quotes & Cost Estimates
See what insurance really costs: actual quotes by policy & specialty.
Get Estimates
Ask A Question
Submit your questions about small business insurance and get answers from our experts.
Read Answers