It is safe to say that retailers face market competition a little more than other sectors. To work under such pressure and build a profitable business requires smart investment.
Retail businesses are dependent on insurance policies in more than one way. Retail insurance policies protect retailers from unforeseen risks, damages, and losses that could be caused by natural calamities, machines, accidents, cyber-threats, or even theft. Read more about it here.
In this article, we will discuss different retail insurance policies and covers that you can choose from. But first, let’s understand the insurance policies that are relevant to retail businesses.
What type of insurance do retail stores require?
Retail stores, especially small businesses, should invest in general liability insurance policies or business owners’ policies. These policies are made to protect business owners against unforeseen losses and customer disputes. They cover general liabilities of the store and commercial property belongings. It also includes insurance cover of product stocks and shipments, both on and off-premise. Retailers should also invest in insurance policies that cover the loss of income because the retail industry is most prone to go through no-income phases.
Business insurance can assist safeguard businesses from financial losses regardless of the type of store they have. Most businesses need property and liability insurance, and most states require retailers to obtain workers’ compensation insurance if they have employees.
In the event of a lawsuit, umbrella insurance can give an extra layer of liability protection. Workers’ compensation coverage may offer the employee income replacement and medical benefits if they are injured while on the job. Umbrella insurance is even recommended for retailers who already have other insurance policies. Here’s why.
What are the different retail covers?
Retail insurance can be tailored based on the retailer’s needs. Following are some of the insurance covers that retail insurance policies offer.
1. Risk coverage
Risk coverage is a vast concept. It can range from personal cover to employee insurance and business cover. Retailers can opt for tailored risk coverage based on their needs and scale of operation. For example, a clothing store can extend risk coverage to its material stocks and warehouses, whereas, a restaurant can include spoilage coverage for their raw materials and perishable foods. Sometimes, even extreme weather events can cause huge damage to property and goods that should be considered when choosing retail insurance.
Business Owners Policy (BOP) is the most accepted retail insurance. It protects retailers from several risks such as fake money orders and counterfeit money, although owners may want to establish additional limits. The BOP covers the owner’s liability in accidents as well which can extend up to the policy amount.
2. Cyber-security
Today, cyber-security in the retail business is more than just financial protection. Retailers deal with a huge amount of personal data of their customers. Security breaches not only pose a threat to the retailers’ data but can have serious repercussions on the customer’s end as well.
Cyber security cover not only protects retailers against the costs of a breach but also helps them take necessary actions against information leaks. It can assist the retailers in investigating a breach, notifying their consumers, and providing them with a free credit monitoring service. Cyber-security cover depends on the insurance package. Small businesses should especially invest in this insurance cover. To know why; click here.
3. Workers’ compensation
If one of the retailer’s employees gets injured at work, worker’s compensation pays for medical expenses and a percentage of missed wages. The cost of workers’ compensation and the coverage provided to employees differ from carrier to carrier.
4. Employment practices liability
Both full-time employees and short-term staff like casual workers and contractors can claim compensation for injuries or illnesses caused while on the job. To take care of such instances, employment practices liability insurance should be chosen. To know the details of this insurance cover, click here.
5. Public liability coverage
Public liability coverage protects retailers against third-party liability such as injury or property damage claims, for which the business is at fault.
6. Product liability coverage
If the company produces, manufactures, or supplies physical things, whether they sell them or give them away for free, the retailers may require this insurance cover. Because faulty products might result in injury and property damage, this coverage is frequently included in retail insurance policies alongside public liability.
7. Shop premise insurance
It covers both the contents and the property of the shop. Like fire insurance, this is retail insurance for small to medium-sized businesses that cover burglary or any catastrophes caused by natural calamities, unintentional fire, and so on.
What is a Business Owner’s Policy?
A BOP (Business Owner’s Policy) is a single commercial insurance policy that covers both property and liability insurance for a business. BOP insurance safeguards the retailer’s business against claims arising from disasters such as fire, theft, or other covered incidents. Business owner’s insurance also helps to cover claims that may arise as a result of the business’s operations. Personal injury and property damage claims are among them. To know more, click here.
Where can you get retail insurance?
The retail business is one of the oldest industries. It is the foundation of most markets today. Still, it frequently faces significant losses due to the shortcomings in insurance coverage.
When choosing a retail insurance policy, retailers must assess their compatibility with the insurance providers. We at Gonzalez & company understand how crucial insurance coverage is for the retail industry. Even one slow month can lead to the failure of a business. We are a one-stop shop that offers custom policies for businesses of all sizes. Here is how we go the extra mile to get you the best insurance solution.