Retail Business Insurance
Small Business Insurance for Retail Stores
Storeowners face unique risks, and independent retailers often have thin profit margins and have to run their store on tight budgets to weather the boom-and-bust cycles of retail. Would you have enough money to pay for a lawsuit if a customer slipped and fell at your store? Legal costs and other financial woes cause many stores to shutter. The good news is that store insurance can offer protection for many financial risks, including…
- Slip-and-fall lawsuits.
- Data breaches.
- Theft and property damage.
- Employee injuries.
Insurance for Retail Stores
Insurance for Retail Stores
Each retail business is slightly different — that's part of what you offer your customers. No two jewelers approach their trade the same way. No two garden supply stores offer the same plants or cater to the same clientele. So it only makes sense that your insurance should be customized to cover the risks of your unique business. You might not need all of these policies, but by customizing the policies you do invest in, you can be sure to get smarter coverage for your business. Here are the types of insurance that other retailers often invest in:
General Liability Insurance
General Liability may cover the cost of third-party lawsuits over bodily injury, property damage, and reputational injury. This insurance is fundamental: landlords and business partners may require you to have it. Make sure to check your leases and contracts for these insurance requirements.
E & O Insurance (also called Professional Liability Insurance) may make sense for retailers whose work involves consulting, expertise, or high stakes for the customer. It offers coverage when a customer sues claiming that errors or oversights in your work caused them a financial loss. Florists, wedding dress vendors, and optometrists, for example, may benefit from carrying an E&O Insurance policy.
Often required for employers, Workers' Compensation Insurance may pay for medical costs and lost wages when your employees are injured on the job. If a an employee stocking shelves suffers a concussion when a can of beans falls on his head, Workers' Comp can help cover his medical bills and may pay for some of the salary he loses if he can't return to work right away.
To insure your store's inventory, equipment, computers, and other items, you can invest in Property Insurance. Commercial Property Insurance may reimburse you when your business property is stolen, damaged, or destroyed. Property Insurance typically covers losses due to fires, theft, vandalism, windstorms, and other covered weather events. Retailers, like florists or grocers, can even get coverage for spoilage if the power goes out and their inventory goes bad. Many policies also offer Business Interruption Insurance to cover the income you lose if a storm or other covered event interrupts a business in your supply chain and you're unable to get key shipments.
Jewelers Block Insurance is a specialty coverage that jewelry stores can get to insure their fine jewelry from theft and industry-specific risks. Jewelers Block may cover a customer's damaged jewelry, goods stolen during a trade show, and other specialized risks.
Inland Marine Insurance is a Property Insurance policy that may cover items that are in temporary locations. This coverage may be important for retailers who do "trunk sales" or set up shop in temporary locations. Inland Marine may also cover artwork and other portable, valuable property you have at your store.
Rather than buy a General Liability Insurance and Property Insurance policy separately, storeowners can get them both in a Business Owner's Policy (or BOP). Why get bundled insurance? Qualifying small-business owners can get a discount on these two policies when they purchasing as a package.
Business Income Insurance
Many retailers are relieved to find out that there is an insurance policy that can replace income you lose when you're forced to close by a covered property event. Business Income and Interruption Insurance can help ensure that you don't default on your bills while you wait for large-scale repairs.
Cyber Liability Insurance (or Data Breach Insurance) has been a recent additional to many store's insurance portfolios. If your store's point-of-sale system is hacked, you would have to contact your customers, handle complaints, pay for identity theft prevention services, and fix your technology. Cyber Liability Insurance may cover these costs.
Umbrella Insurance may offer additional coverage to General Liability, Hired and Non-Owned Auto Liability, and Employer's Liability. Here's how it works. If a lawsuit costs $1.5 million, but your GL Insurance only covers $1 million, Umbrella Insurance can kick in to cover the extra costs after you've used up your other coverage.
Commercial Auto Insurance can be a smart investment if your store's employees have to drive as part of their work duties. For example, if your flower shop makes deliveries, this coverage may pay for expensive car accidents.
Helping You Make Sense of Retailer Insurance
Is your head spinning after reading about all these small business insurance options? Don't worry. Sometimes the easiest way to figure out your insurance needs is just to talk with a human being. You can call our retail insurance specialists at 800-688-1984 or fill out an online insurance application to get free quotes.