General Liability Insurance
for Retail Businesses

Whether you own a small clothing boutique or an office supply store, you know that every time a customer enters your shop, the potential for slips, spills, and liability claims comes with them. From tripping on welcome mats to injuring themselves with one of your products, customers can accidentally harm themselves regardless of the measures you take to ensure their safety.

That's why so many retail business owners turn to General Liability to safeguard their retail business against unforeseen accidents, oversights, and lawsuits. With adequate coverage, your retail business may be covered in the event a disgruntled customer alleges bodily harm and decides to sue your business. Even if the claim is meritless, simply appearing in court may take time and hard-earned money away from your business if you don't have General Liability Insurance.

Keep reading to discover how General Liability Insurance can offer protection for your retail business.

A Safety Net

General Liability Insurance: A Safety Net for Retail Storeowners

The retail industry is built on serving customers and along with this daily flow of patrons comes the potential for accidents. For example, if your floors are freshly mopped or just slightly slick from rainwater your customers trudged in, there's a scenario for risk. If a customer slips on the wet floor and breaks an ankle, they could file a lawsuit against your retail business. The court doesn't even have to rule in their favor for the claim to become an enormous financial ordeal for your business. Lawyers' fees to defend against a claim can be enough to overwhelm your shop.

When these lawsuits occur, your retail business's General Liability Insurance may kick in to protect your store and cover costs associated with bodily injury and property damage claims. Though many small business owners subscribe to the adage "you can't bleed a turnip," the truth is that if your business is found liable for a claim, your business assets could be seized to pay the judgment if you don't have General Liability Insurance to protect yourself.

General Liability may extend to cover claims brought against your business due to your employees' actions. This coverage offers retail storeowners the assurance that your business can survive a costly lawsuit and still have the necessary funds to keep your business thriving. Because legal fees alone can easily climb to hundreds of thousands of dollars, storeowners should consider including General Liability in any business protection plan, especially if their retail businesses welcome customers into their stores each day.

Key Details

General Liability Insurance for Retail Businesses: Key Details

While shopping for a policy to protect your retail business from costly liability claims associated with bodily injury or property damage, be sure to ask your Insureon agent about creating a custom insurance policy for your business. Your General Liability coverage may protect your retail business against the following type of claims, depending on your policy limits.

Bodily Injury Claims

General Liability Insurance may shield retail business owners from one of the most prevalent and costly liability claims: bodily injuries. Accidents happen all the time in commercial establishments, no matter how prepared you are. For example, say a customer is reaching for an item above them. You may have warning signs in place that remind customers to ask for assistance reaching high-shelf items, but they reach anyway. As a result, an item falls and lands on their head. Such an accident is enough for a customer to sue your retail business for bodily harm. Even if the lawsuit is ultimately without merit, your retail business would still be responsible for attorney's fees and court costs if you don't have adequate General Liability coverage.

If a third party's injury or illness results in death, your General Liability policy may provide funds for medical costs, funeral expenses, and court-awarded compensation. Your own employees' on-the-job injuries or job-related illnesses, however, are not covered by this policy. Your retail business should consider Workers' Compensation Insurance for that protection.

Property Damage Claims

General Liability Insurance may also cover property damage liability claims. Say, for example, that one of your customers leaves a ring in the care of your jewelry business for cleaning and it's damaged in the process. Should that customer try to sue your jewelry business, your General Liability coverage may kick in to pay for the costs of a covered claim.

Products Liability

As retailer, you could be sued if a product you sell causes an injury to one of your customers. A toy store might sell a product that contains small pieces a child could choke on. A florist could sell a plant that causes a customer to break out in a nasty rash. For injuries and illnesses caused by your products, General Liability may cover your lawsuit costs. Most GL policies include products liability coverage for these risks, but always check with your insurance agent about the details of your coverage

Services Liability

Similar to products liability coverage, General Liability Insurance may also offer services liability coverage in case a customer is injured by a service you perform. For instance, a pool store may also offer pool cleaning and maintenance for their customers. If a customer got sick when the pool's chemistry failed to prevent bacteria growth, the store's General Liability Insurance may cover the lawsuit.

Personal and Advertising Injury Claims

Retail businesses that use advertising or promotional material to attract customers will be happy to know that General Liability Insurance may also protect your business from allegations of non-physical damages to another person or entity, including copyright infringement, libel, or slander.

Medical Expenses Claims

If a customer is injured on your retail business's premises, your General Liability Insurance may cover claims relating to their immediate medical expenses. Due to the high cost of medical care, this protection is invaluable to small-business owners who could be held responsible for paying the medical expenses if the accident occurred on their premises. As a general rule, if someone is injured on your business property, insurance companies prefer to cover the expenses of immediate medical attention rather than let the situation go unattended and have that person come back later and sue your business.


How Much Does General Liability Insurance Cost for Retail Businesses?

Costs vary from one business to the next, but you can read our sample insurance quotes for retailers to get a fair idea of what you might pay for General Liability Insurance. Also, be sure to check out our article about the cost of General Liability Insurance for some helpful statistics about what the typical business owner pays for coverage.

Safeguard Your Retail Business

Ready to protect your retail business from uncertainty with General Liability Insurance? Submit an online application and you may be able to begin coverage in less than 24 hours!

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