Retail Insurance

Retail Insurance

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What Retail and Insurance Is All About:

As a retailer, you offer products to consumers. You may focus on one type of product or a variety. You likely already take some basic precautions such as locking up the cash register at night and the store, but if you do not have some basic insurance policies, you may be leaving your company at risk.

Knowing what you need and finding the right coverage can be time-consuming as well as confusing. We can help you find the right coverage for your business. Continue reading to see what is common for retail trade businesses.

Read on to understand what kind of insurance you may need.

Who Needs Retail Trade Insurance?

Any business that incorporates retail trade would benefit from retail trade insurance. Types of retail trade businesses include but are not limited to:

  • Wholesale Retail
  • Consumer Retail
  • Specialty Retail
  • Grocery Retail
  • Discount Retail
  • Clothing Retail

Still not sure what you need?

CoverWallet's Insurance Checklist , you'll find a list of insurance types needed for your specific business or industry.

What Insurance Do Retailers Need?

Since every retail business is different, the exact type of retail trade insurance that you will need will completely depend on the scope of your business. We can help you with the basics and assist you through any specific coverage so that you can ensure that you get the types of insurance that you need.

General Liability Insurance

  • Injury protection: This type provides coverage in the case that a customer is injured as a result of using your product or a service that you offer. One of the most common lawsuits in this area is slip and fall.
  • Legal Costs and Settlements: This type of insurance also offers protection and coverage for legal costs and settlements that are associated with those types of lawsuits.
When Should You Get General Liability Insurance?

If you sell a product or service, you should have liability as soon as you begin selling so that you can protect yourself and your business from those risks.

For Example…

If you sell a skin care product and a user claims that it caused burns on their body, they may sue you for a settlement. Liability insurance will protect you so that the lawsuit will not cause your business to go under.

Other Things to Note…

You can speak with an insurance agent to identify liability prone areas in your business so you can minimize those risks even more. Once they are identified, you can fix the situations with viable solutions.

BOP or Business Owners Policy

Often times, several different insurance policies can be bundled together for something called a Business Owners Policy. Additional coverages you might want to consider for this type of policy include:

  • Spoilage: This provides coverage for your inventory in the case that it goes bad. This is typically ideal for businesses who deal with food and it can provide coverage in case food spoils before it can be used or in the case of a lawsuit that results from food poisoning.
  • Burglary and Robbery: This type of coverage offers protection from potential burglary and robbery. If you happen to be in this situation, you will not have to be liable for the money lost so that you can continue to run your business.
When Do You Need a Business Owners Policy?

Business Owners Policy is ideal for smaller businesses who want to combine multiple types of insurance policies in order to better protect your business. This type of plan usually comes at a lower cost so it can not only save the business money but it can also save a business a lot of money based on the coverage that is included in the combined policy.

For Example...

If your business orders a shipment of food and it is delayed based on some unexpected circumstances, it may get to you and already be spoiled. If this happens, the company you have ordered the food from may not cover the cost of the food and require you to pay it. If you have Spoilage Insurance, the insurance will cover the cost of it so that you do not have to take a business financial hit.

Other Things to Consider...

There are many different types of coverage that you can bundle together in your Business Owner's Policy Plan. It is important to discuss all of your needs with us so that we can make sure you have the best coverage for your needs.

Workers Compensation

Workers Compensation is an insurance for your employee's protection. It will cover lost wages and any medical treatment that are the result of a work-related injury. It can also protect you as the employer from any injury lawsuits.

When Do You Need a Workers Compensation Plan?

For some states, it is required that you obtain a workers compensation plan. If you are an operating business and it is required by your state to have this type of policy, it is important to get one as soon as you have an employee.

If your state does not require this type of insurance coverage, you may still want to consider it so you can protect the business from this type of lawsuit and protect your business reputation.

For Example...

If you have an employee working for your retail business and they hurt themselves on the job, this type of insurance will protect your business from a potential lawsuit as well as pay for all medical costs and lost time for the employee.

Other Types of Insurance to Consider:

  • Commercial Auto: This coverage is for your business vehicles and provides extra coverage in the event of an accident.
  • Employee Dishonesty Coverage: This coverage protects you from threats that are within the business. This includes theft, fraud, and even embezzlement that comes from employees.
  • Errors & Omissions Insurance (E&O): Designed to protect your business against liability when employees make honest, yet damaging oversights or omissions. This insurance policy will provide for legal representation and damage payouts should those occur.

How Much Does Insurance Cost?

The cost of your insurance policies will depend on a variety of factors including the types that you get, the location of your business, previous claims, the size of your business, and more. You can get an accurate quote by speaking with an insurance representative and making sure all of your needs are met.

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