Retail Insurance: The Ultimate Guide
The retail industry is a tough business. You may live on the simple concept of “buy low, sell high,” but it’s usually not that simple. Whether you own one storefront, a store chain, or a franchise, you need to make sure your retail business is properly protected with the best retail insurance policy.
Every retail business has some risk that it needs protection from, big and small. For example, in New York, a man sued a supermarket for mislabeling their products. In another case, several businesses were hit with a lawsuit for not having ramps for disabled customers. Finally, let’s not forget about the case of the woman who sued and got $3 million from McDonald’s after spilling their coffee.
East Insurance Group offers your retail business the specialized store insurance you need to keep your business up and running even in the event of a disaster such as a storm or a lawsuit. This is a package of coverage designed to protect you from the typical risks you face every day as the owner and are tailored to your specific business type, your employees, and budget. Here’s everything you need to know about retail insurance.
What is Retail Product Insurance?
Retail store insurance covers various liabilities, including customer slip and falls, property damages, employee injuries, illnesses, and theft. Depending on the specific needs of your business, retail store insurance coverage may include workers’ comp, general liability, business owners, and other types of policies that we will explain shortly.
Typical Risks of the Retail Business
Every retail business is slightly different from the business down the street and requires a slightly different commercial retail business insurance. However, these major policies are important parts of any retail business protection plan:
- Business Insurance: This coverage isn’t always required, but is highly recommended. It will protect your business and allow it to keep running even in the face of a catastrophe.
- Unemployment Insurance: According to the SBA, businesses with employees are required to pay unemployment insurance taxes under certain conditions. If your business must pay these taxes, you must register your business with your state’s workforce agency.
- Disability Insurance: A disability insurance policy can help cover daily living expenses and provide resources for recovery and return to work if one of your workers suffers a non-work-related injury or illness and is unable to work.
- Commercial Auto Insurance: If you make deliveries, this policy will protect your fleet of company-owned vehicles in cases of accidents with other vehicles.
- Flood Insurance: If your business is in a flood risk area you should consider getting a flood insurance policy to protect against flood damages.
Types of Retail Business Insurance
Retail store insurance can get your business a variety of coverage to ensure your business has enough coverage. Even a small store may not be covered enough with a basic property insurance policy, and larger retail businesses require other coverage options to achieve the best coverage. This could include:
- General Property Insurance: This insurance can provide compensation for your loss. Protect your store’s merchandise as well as furniture, racks, shelves, and counters from being lost or damaged due to severe weather, fire, vandalism, or major theft, however, this may not cover shoplifting or petty theft.
- Computer Property Insurance: Computers are often the unseen backbone of any brick and mortar store. This policy will cover computer equipment used in your store should they be rendered useless thanks to cyber issues such as viruses or need repair because of breakdown.
- Backup of Sewer or Drain Insurance: Sewer backup can ruin thousands of dollars of inventory and store equipment. This policy can offer you compensation so that you can repair or replace your damaged items.
- Signage insurance: This policy will protect signs from damage and vandalism.
Retail Business Insurance: Liability Coverage
Every day thousands of customers may flood through your doors. Today, it only takes one angry customer having just the wrong experience, and you’ve opened yourself up to a liability lawsuit. A good retail liability insurance policy can protect you by offering the following policies.
- General Liability: General liability insurance will provide you with coverage to protect against lawsuits such as slip and fall, trips on the curb, or getting injured by a falling object. If they’re on your property.
- Product Liability: Product liability insurance provides protection against faulty and non-working products. Should someone be hurt, injured, or get sick by a product or service that you are offering or selling in your store you may be held liable.
- Workers’ Compensation Insurance: This insurance provides you with the necessary coverage. In cases where an employee is injured on the job and will help cover all resulting medical costs.
How Much Does Retail Insurance Cost?
On average, retail business insurance costs can be as low as $250 to $450 per year for business liability insurance. There are several factors that impact the cost of store insurance, including:
- Types of coverage
- Business location
- Number of employees
- Claims history
- Business assets
When it comes to retail business insurance costs, the more coverage you need, the more you will have to pay for the policy. Business owners who want to save money on retail insurance should choose a business owner’s policy as it is a more affordable policy.
Who Needs Retail Insurance?
Here are a few businesses that should consider having retail store insurance:
- Pet stores and pet shops
- Jewelry stores
- Clothing and apparel stores
- Grocery stores
- Liquor stores
Retail Insurance FAQs
What Kind of Insurance Does a Retail Store Need?
Most retail stores should consider having general liability and commercial property insurance to protect their businesses. Among other types of policies that are recommended for retail stores are also product liability insurance and workers’ comp insurance.
How Much Does Insurance Cost for a Clothing Store?
On average, clothing stores pay $400 per year for a general liability policy, $800 for a business owner’s policy, and $400 for commercial vehicle insurance.
Finally, if you are an owner of a store, you definitely want to protect your assets and your employees. This is where retail insurance comes in. Retail business insurance is suitable for a range of different stores and its policies can be tailored to meet your specific needs.
Are you still confused about retail store insurance or need some help getting a quote for your business? Contact us today and get all the information you need fast and for free!
Ready to Start?
Our insurance agents are available to guide you.