General Liability Insurance for Furniture Stores

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Understanding Your Furniture Store Insurance Options

Business owners are all too aware of the potential impact accidental risks have on inventory over time. Furniture stores often have high-value items on the showroom floor for customers to test, inspect, and review. When dozens of potential buyers browse your store daily, you need to prepare for unexpected damage.

Purchasing a general liability insurance plan can help protect your business from accidents, lawsuits, and other legal or financial matters that would otherwise negatively impact your business. Therefore, choosing the correct retail business insurance plan is an essential requirement for business owners.

What Is Liability Insurance Coverage?

Ultimately, commercial general liability, otherwise known as CGL insurance, is one of the most important investments a business owner can make. Furniture stores encounter many different potential risks. In the event of a lawsuit against your business, CGL offers coverage for associated legal costs, court fees, and financial damages resulting in civil litigation.

What does general liability insurance cover?

Small business liability insurance may seem like an unnecessary expense to some business owners. However, these insurance packages offer protection to business owners in the event of:

  • Property damage
  • Lawsuits and other legal issues
  • Personal injury
  • Bodily injuries
  • Medical payments
  • Property loss or theft

Why do businesses need retail business insurance plans?

Business owners never want to find themselves out thousands of dollars due to a simple accident or false legal claim. Small business insurance packages give entrepreneurs financial and legal coverage that can prevent a potential catastrophe.

What type of small business liability insurance is available for furniture stores?

While CGL covers most general liabilities your business will encounter, there are several other specific liability insurance options. Other industry-specific insurance options owners should consider include:

  • Product liability: Business owners don't plan for their products to fail, but furniture defects happen. Product liability insurance ensures financial protection for business owners sued due to damages caused by faulty products.

  • Commercial auto insurance: Furniture businesses often offer customers direct-to-home delivery, installation, and other delivery options. Commercial auto liability provides auto coverage in the event of an accident on the road. Auto liability plans provide coverage specific to commercial vehicles, which varies from industry to industry.

  • Cyber liability: The internet age has brought new threats to business owners. Hackers often target small businesses, attempting to steal personal financial information for malicious use. This liability insurance provides coverage for business owners in the event of a cyberattack.

  • Advertising liability: With this insurance plan, business owners receive protection against commercial and trademark violations. Furniture stores with brand-specific imaging should take advantage of these policies to protect claims to their assets.

What other types of business insurance plans are available?

Outside of traditional liability plans, local and governmental mandates may require furniture store owners to hold different types of insurance policies. Some other policies you may choose to purchase to protect your business are:

  • A business owner's policy: Typically, insurers design these policies for small- to medium-size businesses. These plans combine traditional CGL policies with commercial property insurance to provide savings for your business.

  • Workers' compensation: Businesses with four or more full-time employees must have workers' compensation coverage for their employees. These plans cover the cost of medical bills, lost wages, and rehabilitation services to employees who acquire an illness or serious injury on the job.

  • Business interruptions: Interruption insurance provides financial coverage to your business in the event of unexpected closure. Businesses receive compensation for income loss and monthly recurring bills, wages for employees displaced during closure, and the costs of temporary relocation when necessary.

These are just a few examples of the various types of retail business insurance plans available for furniture store owners. Additionally, many companies offer business owners customizable coverage to ensure they receive all applicable insurance.

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Selecting a Furniture Store Insurance Package

Many small business owners struggle to decide what insurance packages are necessary for successfully operating their business. The following five factors will impact the type of insurance you want to purchase for your business:

  1. The size of your business.
  2. The geographical location of your business.
  3. Whether your business is a furniture wholesale company or a traditional furniture store.
  4. Local, state, and governmental requirements.
  5. The cost of insurance packages.

Before you purchase an insurance policy, you should consider these factors. Understanding the legal requirements and best practices for your specific industry niche can help you make the most informed buying decision.

How much does liability insurance cost for furniture stores?

Business owners often focus on the bottom line and look for the most effective way to cut their monthly costs as they prepare to open their doors to the public. Mindful spending can positively impact a business and help reduce monthly expenses. However, CGL insurance is a recurring expense business owners should not overlook during their financial planning.

Thankfully, customizable CGL plans are available for many different types of stores and for furniture manufacturers. Pricing for each plan varies based on five key factors:

  1. How much inventory your business holds.
  2. Your business's payroll costs and the number of employees.
  3. Whether you offer furniture delivery and, if so, the number of associated delivery vehicles.
  4. The type of furniture sold by your store and the average price to replace damaged items.
  5. The location and size of your business.

Typically, small business liability insurance plans start at $35 a month. Businesses that have had recent previous insurance claims may find their premiums are higher. Additionally, stores located in areas frequently impacted by hurricanes, tornadoes, and other natural disasters may also pay higher insurance premiums.

When should you purchase business insurance for your store?

When you have determined the type of coverage and price range for your business's liability policy, it is time to move on to finding and purchasing the best plan for your business. You can take advantage of our free quote tool to determine the estimated monthly cost for your insurance policy.

To find the best price for your specific furniture and home goods store, you should start shopping early. However, you're not required to purchase your insurance plan immediately after receiving a quote. Most insurance plans offer quotes that are valid for 30 days or more, depending on the industry.

The best practice is for owners to take time to get several quotes and compare the types of coverage and coverage amounts offered by each agency before making a purchase. Keep in mind that businesses should purchase their CGL and any other applicable insurances prior to interacting with their first customers.

Purchasing an insurance plan before opening and interacting with customers ensures that owners receive coverage for any potential accidents from the moment they begin official business.

The Steps to Choosing Furniture Store Insurance

Follow these 5 golden steps to purchasing CGL insurance for your business:

1. Determine what kind of coverage your business needs. Consider the different liabilities presented by your business. Remember, factors such as your specific industry, number of employees, and risk factors, including national disasters, may impact the type of coverage you need.

2. Determine other applicable coverages for your business. When purchasing insurance plans, owners often score savings by combining different coverage types with the same insurer. This step provides owners with many different savings opportunities.

3. Decide on your budget for CGL and other coverages. Determining your monthly or annual budget is an important step in preparing to purchase your plan. Knowing how much you can afford to spend on coverage allows you to focus on coverage options within your premium range.

4. Request free coverage quotes online. At this point, business owners need to look at a variety of quotes. Many insurance companies provide business owners with multiple quotes based on coverage levels and types.

5. Purchase your CGL insurance prior to interacting with customers. Once you've determined what insurance plan and provider suits your needs, it is time to purchase your plan — before you start interacting with customers.

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Final Thoughts on Retail Store Liability Insurance

Ultimately, liability insurance is one of the most important investments a business owner can make. Liability insurance protects owners in the event of accidents, lawsuits, and product defects that may result in legal ramifications. Additionally, liability plans allow owners to combine multiple types of coverage under a single, affordable rate.

Whether you're considering opening a furniture store or looking for quotes for an existing store, CoverWallet offers plenty of options to meet your needs. Reach out to us for more information about the services and coverage we can provide for your business.