Insurance for Clothing Stores

Unexpected expenses can cause your business to collapse financially, particularly from property damage, third-party injuries, professional liabilities and other legal liabilities. Any of these instances could cost you a lot of money unless you have insurance.

Apparel or Clothing stores, like other businesses, face risks that if left unprotected can lead to financial ruin and shut down your business. Here are some risks your apparel store could face:

Theft: Theft is equal to 1.5 percent of your other sales. Although a small number, it could destroy your profit margin if you don't insure against it.

Damage to Inventory: A fire, tornado or any other natural disaster could leave you with a costly supply of damaged inventory.

Customer Injury: If a customer slips inside your property and has a broken leg, you could be looking at many bills for the medical expenses and potential legal expenses if they decide to sue.

On average, clothing stores pay $400 on General Liability policy, $800 on Business Owners Policy (BOP), and $400 on Commercial Auto insurance. These rates are on an annual basis.