Retailers need to protect themselves against the unexpected disasters that can happen – like theft, fires or even natural disasters. They also need to protect their customers, inventory and employees. This is where retail-store-insurance comes in. Insurance doesn’t prevent disasters, but it does help cover the costs if they do occur.
The type of retail business insurance a retailer needs will vary according to their size and the nature of their operations. In general, most retailers will need business insurance that includes commercial property insurance and general liability. This protection can help pay for repairs or replacements to a store’s building and its contents, as well as the cost of lost inventory or stolen goods. It can also include business interruption insurance, which helps make up for lost income if the store is forced to close due to an insured loss.
In addition, many retailers will need workers’ compensation insurance for employees. This policy covers medical expenses and a portion of lost wages for injured or sick employees. Some retail stores may also need product liability insurance, which provides coverage for claims related to faulty or defective products sold in their shops.
Lastly, some retailers will need commercial auto insurance for vehicles used for work purposes. This type of insurance will cover the cost to repair or replace vehicles that are damaged in a covered accident and also pays for the costs of liability for bodily injury and property damage caused by an employee driving a company vehicle.
Many retailers will find that the best way to get the right insurance is to work with an independent agent. They will be able to review multiple providers and offer quotes, compare coverage options and recommend policies that are right for the business’s needs. They can also provide advice on how to improve risk management and help the retail business prepare for potential disasters.
A retail store owner will also want to review their business needs annually to make sure their insurance is still appropriate for their operation. As a result, the cost of retail insurance can vary widely, depending on a number of factors. Some retailers may be able to save money by purchasing a package of policies instead of individual policies.
The cost of retail insurance varies based on several factors, and it is difficult to share an exact amount without knowing more about the specific details of a business’s situation. However, Insureon reports that retail store owners typically pay about $65 per month or $790 per year for a business owner’s policy (BOP), which includes general liability and commercial property insurance.
Regardless of the type of retail store, all businesses need to consider the possibility of disasters occurring that can affect their financial stability. The best way to do that is by having a comprehensive, customized business insurance plan in place that includes both traditional and specialty retail insurance coverage. It is important to review the policy annually and make any necessary adjustments.