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Adult Novelty Insurance Policy Information

Adult Novelty Insurance

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Adult Novelty Insurance. Also known as adult novelty liability, it is a specialized product liability insurance service offered to the manufacturers, wholesalers and/or retailers of specialty adult products.

It is designed to cover the holders of adult novelty insurance policies against possible legal action resulting in the failure of their products causing someone injury.

Adult novelty insurance protects your business from lawsuits with rates as low as $47/mo. Get a fast quote and your certificate of insurance now.

Below are some answers to commonly asked adult novelty insurance questions:

What Is Adult Novelty Stores Insurance?

Adult novelty stores insurance is a type of insurance that specifically covers businesses that sell adult-oriented products and services, such as adult toys, lingerie, and adult films.

This type of insurance typically includes coverage for liability, property damage, and loss of income due to unexpected events or accidents that may occur within the store or on the store's property. It may also include coverage for employee theft or dishonesty, as well as product liability for any defects or issues with the products sold.

How Much Does Adult Novelty Insurance Cost?

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small adult novelty businesses ranges from $47 to $69 per month based on location, products sold, payroll, sales and experience.

Depending on the exact nature of the product you sell, you may end up paying slightly higher premiums than the shoe store next door or the factory producing tissue paper. Annual premiums are very dependent on your location, gross sales, product mix etc.

Why Do Adult Novelty Stores Need Insurance?

Adult novelty stores need insurance for several reasons. These include:

Liability: Adult novelty stores can be sued for various reasons, such as product liability if a customer is injured by a product, or if a customer claims that a product caused them harm. Insurance can provide protection against these types of claims.

Property Damage: Adult novelty stores can experience damage to their physical property, such as fire, theft, or natural disasters. Adult novelty insurance can provide coverage for these types of events.

Business Interruption: If a store is forced to close due to a covered event, insurance can provide coverage for lost income during the period of interruption.

Employee Injury: If an employee is injured on the job, workers' compensation insurance can provide coverage for medical expenses and lost wages.

Cybersecurity: Adult novelty stores may also need cybersecurity insurance to protect against data breaches and other cyber threats.

Some of the most popular adult novelties include:

  • Anal beads
  • Anal vibrator
  • Aneros
  • Arab strap
  • Ben Wa balls
  • Borghild Project
  • Bread dildo
  • Butt plug
  • CandyGirl
  • Cock ring
  • Dildo
  • Double penetration dildo
  • Erotic electrostimulation
  • Erotic furniture
  • French tickler
  • G-Spot vibrator
  • Genital jewellery
  • Hitachi Magic Wand
  • Love egg
  • MysteryVibe
  • Nipple clamp
  • OhMiBod
  • Orgasmatron
  • Passion Dust
  • RealDoll
  • Roxxxy
  • Sex dice
  • Sex doll
  • Sex machine
  • Sex pillow
  • Sex robot
  • Sex swing
  • Sinulator
  • Strap-on dildo
  • Sybian
  • Tantus
  • Teledildonics
  • Vibrator
  • Violet wand
  • Virtual reality sex
  • other adult related paraphernalia

Overall, adult novelty stores need insurance to protect their business and assets from potential risks and liabilities.

What Type Of Insurance Do Adult Novelty Businesses Need?

Adult businesses need adult novelty insurance just like any other type of business does. The first step is to register the business and then obtain insurance. Any type of adult novelty business has to go through vigorous licensing requirements when it is being set up.

But in general there are three different types of adult novelty store (sex shop) insurance you will need to get:

General Liability: Every business no matter what needs this type of insurance. This policy provides you with defense should you, your employees or your products cause harm or damage to any third parties, along with other coverages that you will need.

GL protects your business from 3rd party's claims of bodily injury, associated medical costs and damage to property.

Worker's Compensation: This will cover your business should any of your employees or you get injured while working on the job. workers comp is required for any non-owner or partner employees.

Data Breach: As you can imagine, privacy extremely important in the adult novelty business. This type of business will more than likely be storing sensitive information about its clients and this type of adult novelty insurance coverage will provide protection in the event of data being leaked out or going missing.

It can be the difference between an easy solution and a large and expensive lawsuit.

Adult Novelty Store's Risks & Exposures


Premises liability exposure comes from slips and falls due to public access to the premises. Floor coverings must be in good condition, no frayed or worn spots on carpet, and no cracks or holes in flooring. Steps and uneven floor surfaces should be prominently marked. Sufficient exits must be provided and be well marked, with backup lighting systems in case of power failure. All goods should be kept on easily reached shelves so that customers do not pull down items on themselves.

Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls. If the business is open after dark, there should be adequate lighting and appropriate security for the area.

Personal injury exposures are from apprehending and detaining shoplifters. Shoplifting procedures must be fully understood and utilized by all employees.

Products liability exposure is normally low. Direct import of foreign products can be a concern, particularly as it relates to adult toys. Foreign-made items should come from a domestic-based wholesaler. Any direct importer should be considered as a product manufacturer.

Workers compensation exposures are from lifting that can cause back injury, hernia, sprains, and strains, and from slips and falls. Employees should be provided with safety equipment, trained on proper handling techniques, and have conveying devices available to assist with heavy lifting. Shelves should be easily accessible for storage. Stepladders should be available. Housekeeping in storage areas, especially during peak times, is vital in preventing trip and falls. In any retail business, hold-ups may occur. Employees should be trained to respond in a prescribed manner.

Property exposures are low since ignition sources are limited to electrical wiring, heating and cooling systems. The material, fabrics and plastic goods on hand can create a tremendous fire load and be extremely susceptible to damage by fire, smoke and any type of moisture. If high-value items are carried, theft may be a concern. Appropriate security measures must be taken, including physical barriers to prevent entrance to the premises after hours and an alarm system that reports directly to a central station or the police department. Breakage is a concern as items may be made of glass or pottery.

Business interruption is a concern since sales may peak at particular times during the year.

Crime exposures are from employee dishonesty and theft of money and securities either from holdup or safe burglary. Background checks should be conducted on all employees handling money. There must be separation of duties between persons handling deposits and disbursements and handling bank reconciliation. Money should be regularly collected from cash drawers and moved away from the collection area, preferably to a safe on premises. Bank drops should be made throughout the day to prevent a buildup of cash on the premises.

Inland marine exposures are from accounts receivable if the store offers credit, computers to transact sales and monitor inventory, and valuable papers and records due to customers' and vendors' records. Backup copies of all records, including computer records, should be made and stored off premises.

Business auto exposure is generally limited to hired and non-owned liability for employees running errands.

What Does Adult Novelty Insurance Cover & Pay For?

Adult Novelty Insurance Claim Form

There are several reasons why adult novelty stores may be sued. Some common examples include:

Product Liability: Adult novelty stores may sell products such as sex toys, lubricants, and other adult-oriented merchandise. If a customer claims that a product purchased from the store caused them harm, such as an allergic reaction or an injury, they may sue the store for product liability. Insurance can protect the store by providing coverage for legal defense costs and settlement or judgment expenses in case of a lawsuit related to product liability.

Premises Liability: If a customer or visitor is injured on the premises of an adult novelty store, they may file a lawsuit for premises liability. For example, if a customer slips and falls in the store due to a wet floor or other hazardous condition, they may sue the store for negligence. Insurance can help cover the legal costs and potential damages associated with premises liability claims.

Copyright or Trademark Infringement: If an adult novelty store sells products that infringe upon someone else's copyright or trademark, the affected party may file a lawsuit for intellectual property infringement. For example, if the store sells merchandise with unauthorized images or logos, they may be liable for copyright or trademark infringement. Insurance can provide coverage for legal defense costs and damages related to intellectual property infringement claims.

Employee-related Claims: Adult novelty stores may face lawsuits related to employment practices, such as wrongful termination, discrimination, or sexual harassment. If an employee or former employee files a lawsuit against the store, insurance can help cover the legal costs and potential damages associated with employment-related claims.

Advertising and Marketing Claims: Adult novelty stores may engage in advertising and marketing campaigns that could potentially lead to claims of false advertising, defamation, or violation of privacy rights. For example, if a store's advertising is deemed misleading or if they use someone's image or personal information without proper consent, they may face lawsuits. Insurance can provide coverage for legal defense costs and damages related to advertising and marketing claims.

In all these scenarios, insurance coverage such as General Liability Insurance, Product Liability Insurance, Professional Liability Insurance, and Employment Practices Liability Insurance can help protect adult novelty stores by providing coverage for legal defense costs, settlement or judgment expenses, and damages associated with the lawsuits, up to the policy limits.

It's essential for adult novelty store owners to carefully review their insurance policies and work with an experienced insurance professional to ensure they have appropriate coverage for their specific needs and risks.

Commercial Insurance And Business Industry Classification

5199: Nondurable Goods, Not Elsewhere Classified

Division F: Wholesale Trade | Major Group 51: Wholesale Trade-non-durable Goods | Industry Group 519: Miscellaneous Non-durable Goods

5199 Nondurable Goods, Not Elsewhere Classified: Establishments primarily engaged in the wholesale distribution of non-durable goods, not elsewhere classified, such as art goods, industrial yarns, textile bags, and bagging and burlap.

  • Advertising specialties-wholesale
  • Art goods-wholesale
  • Artists'materials-wholesale
  • Bags, textile-wholesale
  • Baskets: reed, rattan, willow, and wood-wholesale
  • Broom, mop, and paint handles-wholesale
  • Burlap-wholesale
  • Candles-wholesale
  • Canvas products-wholesale
  • Cats-wholesale
  • Chamois leather-wholesale
  • Charcoal-wholesale
  • Christmas trees, including artificial-wholesale
  • Clothes hampers-wholesale
  • Cotton yarns-wholesale
  • Curios-wholesale
  • Dogs-wholesale
  • Felt-wholesale
  • Fish, tropical-wholesale
  • Foam rubber-wholesale
  • Furs, dressed-wholesale
  • Gifts and novelties-wholesale
  • Glassware, novelty-wholesale
  • Greases, animal and vegetable-wholesale
  • Hairbrushes-wholesale
  • Ice, manufactured or natural-wholesale
  • Industrial yarn-wholesale
  • Jewelry boxes-wholesale
  • Leather and cut stock-wholesale
  • Leather goods, except footwear, gloves, luggage, and
  • Lighters, cigar and cigarette-wholesale
  • Linseed oil-wholesale
  • Matches-wholesale
  • Novelties, paper-wholesale
  • Oils, except cooking: animal and vegetable-wholesale
  • Oilseed cake and meal-wholesale
  • Pet supplies, except pet food-wholesale
  • Pipes, smokers'-wholesale
  • Plant food-wholesale
  • Plastics foam-wholesale
  • Rayon yarns-wholesale
  • Rennet-wholesale
  • Rubber, crude-wholesale
  • Sawdust-wholesale
  • Sheet music-wholesale
  • Silk yarns-wholesale
  • Smokers'supplies-wholesale
  • Sponges-wholesale
  • Statuary-wholesale
  • Vegetable cake and meal-wholesale
  • Wigs-wholesale
  • Wood carvings-wholesale
  • Woolen and worsted yarns-wholesale
  • Worms-wholesale
  • Yarns-wholesale

Adult Novelty Insurance - The Bottom Line

To find out exactly what type of adult novelty insurance you need and how much coverage you should have, speak to an experienced insurance agent to go over your options as this industry has a limited market of available insurers.

Additional Resources Retail Insurance

Read valuable small business retail insurance policy information. In a retail business, you need to have the right type of commercial insurance coverage so that your store, employees, and inventory are protected.

Retail Insurance

The retail industry is a vital sector of the economy, providing goods and services to consumers across the globe. It is also a sector that is constantly evolving, with new technologies and trends emerging on a regular basis.

Despite its importance, the retail industry is not without its risks. Retail businesses face a variety of threats, including theft, damage to property, and liability issues. These risks can have significant financial consequences for retail businesses, which is why commercial insurance is so important.

Insurance can provide retailers with protection against financial loss resulting from unforeseen events. For example, if a retail store is damaged by a natural disaster, insurance can help cover the cost of repairs and help the business get back on its feet. Similarly, if a retail employee is injured on the job, insurance can help cover their medical expenses and any lost wages.

In addition to protecting against financial loss, commercial insurance can also help retail businesses protect their reputation. If a retail business is sued or faces other legal challenges, insurance can provide financial support and legal representation. This can help to protect the business's reputation and maintain customer trust.

Overall, insurance is an essential component of a successful retail business. It helps to safeguard against financial loss and protect against potential legal challenges, which can be especially important for smaller businesses that may not have the resources to absorb these types of losses.

By investing in business insurance, retail businesses can ensure that they are well-equipped to handle the many challenges that come with operating in this dynamic industry.

Minimum recommended small business insurance coverage: Business Personal Property, Business Income and Extra Expense, Equipment Breakdown, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits, Umbrella, Hired and Non-owned Auto & Workers Compensation.

Other commercial insurance policies to consider: Building, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Computer Fraud, Forgery, Bailees Customers, Goods in Transit, Jewelers Block, Cyber Liability, Employment-related Practices, Business Auto Liability and Physical Damage and Stop Gap Liability.

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