What Insurance Does a Retail Store Need?

Retail stores face a lot of risks when it comes to day to day operations. Between damages to the store and products as well as possible lawsuits concerning customers, your retail store will need the right type of insurance for protection. 

Commercial Property Insurance  

Commercial property insurance covers the physical property owned by the retail business such as the store and its contents. This insurance covers against damages caused by fire, wind, hail, lightning, smoke, theft, vandalism and more. It can cover equipment, decorations, furniture and other physical assets. 

Part of these policies may also include business income insurance. If the business is unable to operate due to a disaster or government mandate, this insurance can help cover the lost income. 

Commercial Auto Insurance  

Many retail businesses may use vans and other vehicles to transport products. If your business owners or uses vehicles for work purposes, you will need commercial auto insurance. Commercial auto insurance provides coverage for work vehicles such as: 

General Liability Insurance  

General liability insurance is a basic and common type of liability insurance that can cover claims against your retail business concerning bodily injury, property damage and personal or advertising injury. It can cover medical bills if someone is injured on your retail property as well as protect your business in case of a lawsuit. Personal and advertising injury refers to claims concerning libel, slander, copyright infringement, theft of an advertising idea and more. 

Workers Compensation Insurance  

Workers compensation insurance covers incidents in which an employee is injured on the job. If one of your retail employees is injured at work, workers compensation can help with medical bills, wage replacement, disability benefits and, in severe cases, death benefits to the employee’s family in case an employee passes away due to a work-related injury. This insurance is required in most states depending on the industry and number of employees. Whether you are required to carry this insurance or not, it is crucial to keep the employees in your retail business safe and covered in case of an accident. 

Crime Insurance  

While commercial property insurance can cover theft by clients and other third parties, crime insurance is specifically geared to cover acts committed by your employees. If an employee commits theft, embezzlement or forgery against the business’ property, cash, merchandise or other securities, crime insurance can help compensate the business for the losses. This includes coverage for robbery, burglary and fraud. 

Plate Glass Insurance  

Retail businesses generally have a lot of glass in and around the store out of a necessity due to the nature of the business. You may have front and side windows in order for potential customers to look in at your company’s products, for example. Plate glass insurance can cover accidental damage caused to the glass on your business’ premises. If someone accidentally breaks one of your business’ windows, for example, this insurance can provide compensation for repairs or replacements. 

Umbrella Liability Insurance  

An umbrella liability insurance policy serves to fill in the gaps left by your other liability insurance coverages. For example, if your business’ general liability policy reaches its limit for a single claim, umbrella liability insurance can step in to cover the remaining expenses. As an umbrella policy, this insurance can also cover liability in other areas of the business such as the liability under your commercial auto insurance policy. 

Flood Insurance  

It is important to also keep in mind that a single policy doesn’t cover everything. Most commercial property insurance policies will not cover flood damage, so you may need to purchase an additional flood insurance policy to protect your business’ assets from this type of loss. This insurance can compensate for damages to the physical store and items inside in case of a natural flood. 

Be sure to speak with an agent about your retail business’ specific insurance needs. Many retail businesses may benefit from a <business owners policy>, which combines several of the above coverages into a single flexible policy for small businesses.