From commercial property insurance to workers’ compensation, learn how to understand and purchase the right insurance for your retail store business. Check out our comprehensive articles and resources to discover how you can protect and grow your business.
Retail Store Business Insurance Basics
Types of Retail Store Business Insurance
What retail store businesses need insurance?
Every retail store could benefit from some basic forms of commercial insurance. From small mom-and-pop shops to large online retailers, business insurance can protect your company from myriad risks. If your business is involved in any of the following, consider researching commercial insurance policies or talking to an agent:
- You own or lease commercial property, including retail locations or warehouses
- Members of the public visit your business property
- Your retail location depends on functioning equipment, including point-of-sale systems or HVAC systems
- You store valuable inventory or money on your business premises
- You own or lease company vehicles
- You drive a personal vehicle for work purposes
- You hire employees
- You run an e-commerce site that handles credit card transactions and stores customer information
- You sell products that have the potential to harm your clients
Retail Store Business Insurance by Profession
Why is retail store business insurance important?
Accidents and injuries that happen on your business property can bring third-party lawsuits.
Benefits: For many retail stores, foot traffic is incredibly important to the success of the business. But as more customers visit your store, there is a higher likelihood that an accident could occur and a customer could be injured on your property. With general liability coverage, however, you can protect your business against any lawsuits or damages that may arise from third-party bodily injury or property damage.
Risks: Without insurance, a single accident or injury could put your entire business at risk. If your business is unable to come up with the funds to pay for damages or pay the legal fees necessary to defend your business, you may need to sell your business assets or declare bankruptcy.
Owning or leasing a retail space opens your business up to a number of risks.
Benefits: A retail store’s physical space and inventory are incredibly important. Business insurance can protect your business in case anything happens to this business property. If you own or lease a retail space, commercial property insurance can provide funds to repair or replace property that is damaged by a covered peril, including fire, theft, vandalism, and more. If your business needs to shut down temporarily due to property damage, business interruption insurance can provide funds to cover lost income and operational expenses.
Risks: If your business heavily relies on property or inventory, not having property coverage can put your company at severe risk. If a natural disaster occurs or if your commercial space is burglarized, you may have difficulty recovering financially on your own. Without insurance, you will be picking up the entire cost of repairing or replacing damaged or lost property, and if your business is forced to shut down temporarily, you will need to pay out of pocket to keep your business going.
Certain types of business insurance may be required in your state.
Benefits: In most states, companies are required by law to carry workers’ compensation insurance. Even in the safest conditions, accidents can happen, which is why insurance is a necessary solution. If an employee is injured while working for you, insurance will cover you financially as well as make your business compliant with the law.
Risks: Without workers’ compensation, your organization is wide open to financial loss should a worker get injured or sick as a direct cause of working for you. Moreover, multiple injuries could lead to financial losses that ruin your business. As many states have made carrying workers’ compensation part of the law, avoiding the coverage can land you in legal trouble resulting in penalties, fines, and in some cases, imprisonment.
