What Is Retail Insurance?
There are a million retail businesses in the US market that interact with customers daily. Some have a chain of stores while some carry out business independently. Retail shop owners may face several exposures, considering the influx of customers. As a retail shop owner, you need insurance coverage that is tailored for your line of work and covers as many potential loss situations as possible.
Retail Insurance includes several types of policies together to keep retail business owners protected from financial catastrophes. Approach our insurance agents for a fine-tuned program to meet your insurance needs. It is usually a combination of:
- General Liability Insurance
- Workers’ Compensation
- Commercial Auto Insurance
- Commercial Property Insurance
- Business Income Insurance
- Cyber and Privacy Act Insurance
Being aware of the following primary risks should convince most retail business owners to purchase this insurance:
- Reputational Risks
Your bakery uses eggs past their expiration date causing customers who ate your products baked with the old eggs to get sick with food-borne illness. Your bakery’s reputation is harmed. If you carry coverage for foodborne illness, this type of coverage has built-in limits to defend your reputation and expenses to hire public relations professionals to manage and improve your reputation in your community.
- Fraud and Theft
Fraud risks in retail businesses usually arise when a customer pays using counterfeit money or credit cards. Your store has a loss for the goods purchased using a bad payment method. Getting crime insurance included in your business package policy or a monoline crime policy will respond to incidents of counterfeit and fraud.
- Damage to Property
A major water damage incident in your shop ruins the contents of your store such as a computers. point of sales system, fixtures and stock for sale. The absence of property insurance could burn a hole in your pocket to replace all damaged contents. The loss to your contents and goods can be recovered if you have business property insurance for certain types of water damage claims.
- Workplace Injuries
In case an employee suffers a back injury while unloading boxes from the truck, your workers’ compensation insurance will pay for a percentage of lost wages and medical expenses.
- Premises Liability
A customer comes into your store when it has been raining all morning. The store does not have an entrance carpet to absorb the water, no precautionary orange cone or flag is displayed to warn customers that the floor is wet and more importantly no one has mopped and dried the floors. Next thing you know, an elderly customer has fallen and broke her hip, needing to be rushed to the ER. Your general liability will protect you from the legal costs of defense and court-awarded judgments.
Business Owner’s Policy (BOP)
Workers’ Compensation is mandated in most all states. The insurance covers a percentage of lost wages, medical expenses, or death benefits for the employees provided the injury or death is a result of workplace mishaps.
Commercial Auto Insurance
Most all retail stores whether chains or independent, own a commercial vehicle to transport goods. Commercial Auto Insurance provides coverage for auto accident bodily injury and property damage liability, comprehensive and collision damage to owned vehicles, additional medical payments, and accidents involving uninsured motorists. For example, if your driver collides with a car and injures the passenger in the other car causing serious injury that will prevent that person working for a long period of rehabilitation, this insurance will provide defense for the company and the driver as well as payment of the bodily injury liability and loss of income settlement to the injured party.
State Licensing And Liability Coverage
Most states have some sort of financial responsibility requirements to register a vehicle for legal use on public roadways. Most people meet this requirement by purchasing insurance. The coverage and limits required to vary by state and there are coverage options to choose from that exceed state requirements.
Retail Insurance is too broad to zero in on a range. Each business demands unique coverage depending on the following factors that dictate the comprehensive cost of your insurance:
- Annual Revenue
- Location of the store
- Type of Retail Products and Services offered
- Number of employees & annual payroll
- Business equipment or automobiles used in the business
- Building characteristics
- Replacement cost values of property insured
All retail stores regardless of the size benefit from this insurance. Our agents will analyze your business needs and recommend the best-suited policies to shield your business from the brunt of financial loss. Any store that directly sells goods and services to the final customer such as specialty stores, department stores, supermarkets, appliance stores, convenience stores, hardware stores, drug stores, etc. will benefit from Retail Insurance.