A successful retail business has many financial factors to consider, and it might seem to an owner or manager as if retail store insurance is just another item on the budget to manage and keep as low as possible.
If you’ve been in the retail business long enough, you’ve learned that there’s a balance between spending and quality. Your customers know it–when a bargain is a real bargain or a situation where you’re getting the value you paid for–and you do, as well, when it comes to inventory.
But your risk management plan is an investment not unlike the one you make in the product you decide to sell; do you go with the lowest retail store insurance and hope you never need it? Or do you think in terms of the coverage and security it can provide, and pay what that is worth?
You need to be prudent with expenses, but you also have to be aware of the risks involved in the retail business and why you need good retail store insurance; even if you operate from your home, putting products out into the world opens you up to a series of liabilities. When you have a physical location where customers, vendors, employees or delivery personnel come in, your exposure is even greater.
In addition to General Liability coverage, which provides for injuries and damages to third parties, you may need Commercial Property insurance, to cover your premises and equipment, and Business Interruption coverage, in case of an event that disrupts your ability to operate. A solid retail store insurance policy should provide all of these. One option is to purchase a “BOP” or Business Owner’s Policy, which combines all of the above coverages into one policy.
When the foundation of a “BOP” is in place, you can add additional endorsements, depending on your store’s unique needs.
- Workers Compensation. Do you have employees? Your retail store insurance should provide coverage for them–be familiar with your state’s laws concerning your responsibility to workers.
- Commercial Auto. Do you use vehicles for delivery? Visiting vendors? Consider adding additional coverage for them to your retail store insurance.
- Business Income from Dependent Properties. Do you rely on third parties for goods or services? Interdependency is standard in the retail business, but you can expand your retail store insurance to mitigate losses when those relationships have events that preclude you from continuing your business.
Consulting with an insurance professional who can guide you in the search for appropriate retail store insurance for your business isn’t wasted time if it helps you understand your store’s risks and the available answers.
Call us today at 1-877-907-5267 and let us help you find the solutions for your particular retail store insurance needs.