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    Why Retailers Need Store Insurance

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    retail insurance

    As a retail store owner, you’ve got more than enough risks to manage. Having a good store insurance policy can help take the pressure off.

    There’s no shortage of responsibilities you’re required to manage as a retail store owner. From customers and employees to brand image and inventory, there are lots of moving parts to juggle. And like any small business owner, an unforeseen catastrophe could be crippling to your bottom line, possibly even resulting in bankruptcy.

    That’s where having the correct insurance policy is imperative. Even if you’re not at fault, you could be held liable for any bodily injury or property damage that happens in your store. A good insurance policy can help cover legal fees and damages you may be required to pay, keeping you from having to pay potentially large fees out of pocket.

    In this article, we’ll be taking a look at:

    • Why retail store insurance is important for owners, no matter how big or small your business is

    • The five most common types of insurance policies that retail store owners purchase

    • The estimated cost of insurance coverage for a retail store owner

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    The Importance of Retail Insurance

    As with any business, retail stores are prone to risks and accidents that can leave owners in tight financial situations, even if they’re not at fault.

    Paying a small premium for store insurance is well worth the potential savings you could see should you have to make a claim. A good insurance policy will also provide you with peace of mind, knowing that you don’t have to worry about getting hit with any surprising costs.

    While having a good retail insurance policy is vital for avoiding bankruptcy and managing common risks, it’s also often necessary. Depending on where you are, some policies included in retail insurance coverage are legal requirements to opening your business or hiring employees.

    Common Retail Insurance Policies

    While every business is different, here are a few common types of insurance for retail store owners.

    Commercial general liability insurance

    Also known as general liability coverage or business liability insurance, this policy protects you from general claims of damage in your store. For instance, if one of your customers slips and falls on a freshly mopped floor or an employee accidentally damages your inventory, this policy will help cover any associated costs.

    This policy often includes product liability insurance as well, meaning you’re also covered in the event of a faulty product causing property damage or bodily harm.

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    Commercial property insurance

    This insurance coverage protects your business and inventory from any possible external threats, such as vandalism, fire, theft, or wind damage.

    Reletad: Commercial property insurance guide

    Business interruption insurance

    This policy, also known as business income insurance, helps cover your revenue should your store have to shut down for a period of time. For instance, if your business has to close due to a fire, this policy can help cover the cost of rent, lost revenue, and even employee wages.

    Commercial auto insurance

    If your industry requires you to have delivery drivers or employees operate vehicles for commercial purposes, it’s important to have this policy to cover for collisions, damages, and bodily injury.

    Cyber insurance

    This important type of insurance protects against any data breaches or hacks that your company may fall victim to.

    Remember that every retail company is different. Be sure to check with your insurance company to see what kind of coverage is right for you.

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    The Cost of Retail Insurance

    Just like any insurance policy, there’s no cut and dry answer for how much your retail coverage will be. There are a number of factors that will go into determining how much your insurance will cost you, such as:

    • The location of your business

    • What type of business you own

    • What it is you sell

    • Your insurance history

    • How much business you do

    • How many employees you have

    • What type of equipment and machinery you’re using

    Due to the variance in these and other factors, retail insurance policy costs can cost between $500 to upwards of $2,000 a year. However, most small businesses will be on the lower end of this spectrum, as they likely won’t have as many employees or sell as much inventory as larger retail stores.

    Are you looking to purchase business insurance? Start our simplified process to get a free quote within five minutes and have your new policy emailed straight to your inbox.

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    Originally published October 12, 2022, updated August 25, 2023

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    APOLLO Insurance Agency Ltd. (o/a APOLLO Brokerage in the province of Ontario only) is a licensed retail brokerage, offering our clients with a comprehensive set of insurance solutions to meet their individual needs. APOLLO Insurance Agency Ltd. maintains necessary corporate licensing in provinces across Canada. Availability of products and service depends on licensing and product availability. The information that appears on this page is provided for information purposes only. Advertised products and prices are not guaranteed and vary based on insurance provider and/or insurance company's discretion and product availability.

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