How Insurance Protects Your Retail Store
You’ve realized your dream and opened your own store. You’re always working and interacting with the public, which exposes you to many different types of risks.
You need to protect your retail business against theft, product defects, and unforeseen events with the right retail store insurance package.
Ask your Western business insurance expert about what type of retail insurance package you need for your Regina clothing store, bookstore, hardware store, beauty salon, craft store, sporting goods store, florist shop, drug store, among many other retail businesses.
We’ll tailor your retail package to suit your needs.
At Western, we will save you time and money by doing the insurance shopping for you to find a vendor insurance policy that suits you at the right value.
Here’s an insurance check list for retailers:
- Do you have the best business insurance rate for your business?
- Do you have the right amount for your deductible and regularly review to make sure it’s the right amount for your business?
- Is your number of employees up to date?
- Are you using your car to transport your products to a farmer’s market, craft show or trade exhibition?
Why do I need a retail insurance package?
You need a retail insurance package to help protect your Regina business from different types of risks.
Your retail insurance package can provide coverage for risks such as a customer slipping and falling, property damage, equipment breakdowns, or to protect the contents of you store.
Here are insurance coverages recommended for retail stores:
Commercial General Liability (CGL) Insurance: This type of insurance is also known as “slip-and-fall insurance.” Just like its name, it protects your store if a customer should slip and fall on your premises and get injured.
- This policy can help protect your business against any claims of third-party bodily injury or property damage that occur at your place of business.
- Commercial general liability insurance generally covers medical fees, legal expenses, and settlements regardless of the outcome of a lawsuit by a customer against you.
- Your CGL insurance policy should protect you from libel, slander, copyright infringement, and false advertising allegations.
Without commercial general liability insurance, you would be responsible for paying any liability costs out of your own pocket.
Commercial Property Insurance: This coverage protects your retail business and its contents. It can help keep you protected from property losses, such as theft, vandalism, fire, or a flood.
What if there’s a heavy rain and the sewers back up and your business is flooded? You should consider adding sewer backup or overland flood coverage extensions, which standard business insurance policies typically do not cover.
You can also consider adding earthquake insurance.
Creating a contents inventory is necessary if you file a claim for damage or loss due to an insured event.
You’ll also need to do a total inventory of all your business property to determine how much commercial property insurance you will need.
Let your Western business insurance expert explain in detail what is covered with Commercial Property Insurance.
Cyber Liability Insurance: Does your business use e-commerce and take orders and payments online? Do you store client data electronically?
If you use computers for any purpose in your business, you could be at risk for a cyberattack or data breach. These attacks can have serious consequences for your business, both financial and reputational.
If your computer system is hacked, cybercriminals can sell the information. Without cyber insurance, you will have to pay out of your pocket for the cost of restoring your system. You may also be liable for damages to third parties whose information has been stolen and you may have to pay for notification expenses to inform customers affected by a breach.
Ask your Western business insurance expert how cyber insurance can protect your retail business as part of your retail insurance package.
Crime Insurance: Crime insurance provides coverage for events not covered by most property or liability insurance policies.
This type of coverage can protect your retail business from losses due to:
- Employee fraudulent acts, for example: An employee forges your signature and withdraws money from your account
- Theft of money
- Counterfeit money or money orders
- Depositors’ forgery
- Credit card, debit, or automated teller card fraud
Product Liability Insurance: It provides protection against claims alleging third-party property damage or bodily injury caused by a product you sell, distribute, or manufacture.
Damages covered by product liability are usually the result of a defect in the design, manufacturing, or marketing, such as an incorrect label or a lack of safety warnings.
Business Interruption Insurance: Business interruption insurance supports you when your retail store cannot operate due to a covered loss. Being prepared for the unexpected can be the difference between recovering from a loss and closing your business permanently.
There are many losses that can force your business to shut down. Some examples include:
- Damage to your storefront from fire or vandalism
- Damage to a neighboring business
- A major reduction in revenue due to a client/supplier facing losses of their own
- A disruption in your supply chain
Business interruption insurance can help with expenses such as:
- Payroll
- Rent
- Utilities
- Property taxes
- Alarm monitoring
- Relocation of your business
Equipment Breakdown Insurance: This type of insurance provides coverage for property damage from the sudden and accidental breakdown of insured equipment not automatically covered by a standard commercial property policy. You’ll need to have a list of any equipment at your retail store and how much it’s worth.
Commercial Auto Insurance: If you have a business car that you use for your retail operation, it needs commercial auto overage as part of your insurance package. Your personal car or truck insurance usually won’t cover your company vehicles.
How much retail insurance do I need?
It will depend on the size of your retail store and what you are selling.
That means it’s unlikely that all retail outlets would pay the same monthly or annually for their coverage.
Many retail stores owners carry at least $2 million in commercial general liability coverage.
Ask your Western business insurance expert to determine the right level of coverage for your retail business.
What do I do if I have an insurance claim as a retailer?
- Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
- Know your policy so that when you contact your broker you are familiar with what will be covered or not.
- Document the damage. Take photos right away and write down what happened.
- Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
- Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
- Be honest about what your damaged property is actually worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.
Western Insurance has licensed BUSINESS INSURANCE EXPERTS to get your Regina retail store the right retail insurance package. Our experts are available now to help you navigate the business insurance journey to protect your retail store.
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