Workers Compensation covers your employees' medical costs and lost wages while recovering from a work-related injury or illness. The employee gives up the right to sue your company in return for receiving cash and benefits from Workers Compensation. In some states it’s mandatory for businesses!
Business Interruption Insurance protects your small business if impacted by a covered risk. It'll cover the costs in replacing lost income and paying for additional expenditures. Also known as Business Interruption Coverage, this policy is usually part of your BOP (Business Owners Policy).
Business crime insurance, also known as commercial crime insurance, protects against organization-related crime and the resulting losses for your small business. When someone defrauds, embezzles, forges documents, or commits theft, you're covered for the losses.
Business Owners Policy (BOP) protects you from business liability and property damage at a lower cost. BOP covers claims resulting from fire, theft & disasters. BOP also covers claims of bodily injury or property damage during your business operations.
Why do Clothing Stores need insurance?
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.
What risks do Clothing Stores face?
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.
How much is Clothing Store insurance cost?
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.