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Running a Retail Shop? Take Some Time to Browse Insurance Coverage Options

Get to know the types of coverage for retail stores to help make an informed decision about shop insurance

Q.  I'm thinking about turning my online clothing boutique into a brick-and-mortar business. I sometimes worry about the things that might go wrong – from theft to an accidental electrical fire. Is there insurance coverage to relieve my worries?

We posed this question to Shelly Maby, a Farmers Insurance® agent based in Phoenix, Arizona. Here's what Shelly had to say about insurance coverage for retail shops.

A.  No matter what type of retail business you own – a flower shop, an appliance repair shop, a dry-cleaning operation, a kite store, a clothing boutique (you get the picture) – shop insurance may be helpful to help you protect your business against financial losses.

 

The type of shop insurance coverage you may want, depends on your type of business. However, it may be helpful to think about:

 

  1. Property insurance
  2. Fire coverage
  3. Business liability coverage
  4. Business income coverage
  5. Workers' compensation insurance
  6. Umbrella insurance

Whether a claim will be covered will always depend on the facts and circumstances of the claim and the provisions of the policy at issue. However, generally, the following are a few example scenarios that may be covered by different types of shop insurance:

 

  • If you are forced to close your business after a fire, fire insurance coverage may pay for repairs to the building (whether you rent or own it) and business income coverage may provide an income for you while the business is closed for repair or relocation.

  • If your store is robbed and computers or merchandise are stolen, a business crime policy may pay for replacements; this type of insurance may also offer additional consulting services that could help you strengthen your security and reduce the risk of employee theft and robbery.

  • If a customer slips and falls in your store and suffers a serious injury, a business liability policy may pay for legal and medical expenses associated with a lawsuit. Umbrella insurance can add liability protection if the injuries and/or damages are extensive.

  • If you have a delivery van or use your personal vehicle for business errands and have an accident, auto coverage may pay to repair damage or other losses.

  • If hackers steal customer credit card information from your business, cyber liability coverage may pay for theft monitoring services, which can alert your customers to theft associated with the security breach.

  • If an employee is hurt while they're on the clock–such as a back injury from carrying heavy boxes or a fall down stairs–workers' compensation coverage may provide your employee income replacement and medical benefits, and it may provide you coverage for defense costs if a lawsuit occurs.


Because no two retail operations are exactly alike, it's important to think about your particular business needs. Shop insurance policies aren't one-size-fits-all, so let us know if we can help you create a plan with coverage that fits your unique business needs.