Why Do You Need Cell Phone Store Insurance?
I read a news article a few years ago about the owner of a cell phone store who, on the trip home from picking up the newest models of cell phones, stopped to get something to eat. When he returned to his car, the phones were gone. I remember wondering whether he had insurance to cover that loss.
Whether you are the owner of a cell phone store franchise, authorized dealer, part of a large chain, an independent cell phone store owner, or even a cell phone repair business, you are going to need specialized cell phone store insurance to protect you from risks.
Consider a Business Owners Policy
Cell phone stores can choose from several business insurance policies to protect their store, such as a business owners’ policy (BOP). A BOP typically includes the following three insurance coverages.
General Liability Insurance
General liability insurance protects cell phone stores if they’re accused of third-party bodily injury or property damage (i.e. a customer gets injured while shopping for a new cell phone). It can help cover their medical costs as well as any cost associated with court costs, attorney fees, and any settlement you must pay. Most CGL policies also include coverage for advertising injuries such as libel, slander, and copyright infringement.
Commercial Property Insurance
Commercial property insurance protects the physical building your store is located in, as well as any contents—cell phones, computers, expensive equipment, and even furniture. Covered losses can include property damage caused by fire, smoke, theft, vandalism, or other covered perils. Earthquakes, floods, volcanoes, and some other perils are often excluded, so you may need to obtain specialty coverage.
- Flood Insurance: If your business is in a flood zone, your cell phone store will need flood insurance. If you don’t get this coverage and your store is damaged by rising waters, you will likely have to pay replacement costs out of pocket.
- Volcano Insurance: Do you live in Hawaii or the Pacific Northwest? If you live in an area with active volcanoes, make sure your commercial property policy includes an endorsement for volcano-related damage.
- Earthquake Insurance: If you live in an area that’s frequented by earthquakes, you need commercial earthquake insurance to cover any damage to your property.
You can’t skip on this important coverage and it doesn’t matter whether you own or lease the building.
Business Interruption Coverage
If your commercial property is damaged and you can’t operate your business, business interruption coverage comes into play. This insurance policy can help cover payroll, lost profits, taxes, debt repayment, and other operating expenses until you’re up and running again.
What Can Cell Phone Store Insurance Include?
Other insurance policies that a cell phone store should include in their insurance package for their small business include:
Cyber Liability Insurance
If your cell phone store is the target of a cyber attack or subject of a data breach, cyber liability insurance can protect your business. Cyber liability can help notify impacted customers, provide them with credit monitoring, and even pay ransom demands when necessary. If your store includes online sales, this insurance is a necessity.
Commercial Umbrella Insurance
Commercial umbrella insurance is a great way to boost the coverage of underlying policies without a hefty price-tag. Purchasing a commercial umbrella policy can be more affordable than raising the limits of an underlying policy. Some umbrella policies can also cover exclusions from underlying insurance. Check with your insurance agent to see if this is something you should consider.
Employment Practices Liability Insurance
If a current or former employee sues you (as their employer) for any type of discrimination or harassment, employment practices liability insurance (EPLI) can help cover the cost of an attorney, legal fees, and settlements.
Additional Cell Phone Store Insurance Coverage(s) to Consider
While not required, there are some insurance coverages that you can consider as a supplement.
- Inland Marine Insurance: This will cover your merchandise if it is damaged during transport or temporarily stored offsite.
- Business money insurance: This policy covers your cell phone store if it loses money while it is open or while in transit — like the owner in the top paragraph of this post. This coverage will also protect after-hours losses, whether you have the items in a safe or elsewhere in the store, and loss of non-negotiable forms of payment.
- Commercial Crime Insurance: Burglary and robbery insurance covers you if you should be robbed or burglarized. It often includes employee dishonesty coverage, which will reimburse you if you have an employee who embezzled money or pocketed a few smartphones.
- Electronic Data Processing Coverage: Electronic data processing insurance can insure your business against costs incurred because you have to recover or replace software or digital files.
- Workers’ Compensation Insurance: If you hire employees, you’re required to obtain workers’ compensation insurance to protect your employees if they’re injured at work. IT can cover their medical bills and lost wages.
These are only a few of the more specialized insurance coverages you might need for your cell phone retail store. A visit with your licensed insurance professional will set your mind at ease and ensure that you have all the protection you need.
How Much Does Cell Phone Insurance Cost?
The cost of cell phone store insurance varies depending on these factors:
- Do you have multiple physical locations? Or just one?
- Do you have a physical store and an online marketplace?
- Where is your business located? Are you at risk for earthquakes, volcanoes, or flooding?
- How many employees do you have?
- What is your annual revenue?
- How much inventory do you have on hand? What is it worth?
These are just a few of the questions an insurance agent will ask to get you a proper quote for cell phone store insurance.
Get a Free Cell Phone Store Insurance Quote
If you’re in the market for cell phone store insurance, let us help you get a quote! We specialize in helping small businesses get the coverage they need. You can complete the form at the top of the page and someone will reach out. Or, you can call us at 877-907-5267.
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