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Bicycle Shop Insurance Policy Information

Bicycle Shop Insurance

Bicycle Shop Insurance. Bicycle shops assemble and sell bicycles without motors. Related items such as clothing, shoes, helmets, safety equipment, novelties, and other biking gear may also be offered to customers.

Some stores will offer rentals, repair services and delivery. Some sponsor competitions, excursions, events, or tours.

The most likely risks a cycling store faces include injuries to a customer taking a test ride on a bicycle, as well as damage to your property or inventory from situations like natural catastrophes, theft or severe weather patterns.

Getting bicycle shop insurance will safeguard your business against these and other risks you face on a daily basis.

Bicycle shop insurance protects your cycling store from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.

Below are some answers to commonly asked bicycle shop insurance questions:

What Is Bicycle Shop Insurance?

Bicycle shop insurance is a type of insurance coverage specifically designed for businesses that sell, repair, or rent bicycles. This insurance provides protection against various types of risks and losses that a bicycle shop might face, such as theft, damage to bikes, accidents, or lawsuits.

It typically covers the shop's property, inventory, and liability. The specific coverage options available under bicycle shop insurance will depend on the policy, but they may include business interruption, equipment breakdown, cyber liability, and employee dishonesty, among others.

How Much Does Bicycle Shop Insurance Cost?

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small bicycle shops ranges from $37 to $59 per month based on location, size, payroll, sales and experience.

Why Do Bicycle Shops Need Insurance?

Bicycle shops, like any other business, face a variety of risks that can lead to financial losses. Insurance provides protection and peace of mind for the following reasons:

Property damage or theft: Bicycle shops are susceptible to theft and damage caused by natural disasters, such as fire, storm, and floods. Insurance coverage can help recover losses and repair or replace damaged or stolen property.

Liability coverage: Bicycle shops can be held responsible for accidents or injuries that occur on their premises. Insurance coverage can help cover the cost of medical expenses and legal fees if a customer or employee is hurt.

Business interruption coverage: If a natural disaster or other unexpected event causes the shop to close temporarily, insurance coverage can help cover lost income and expenses.

Product liability coverage: Bicycle shops may be held liable if a product they sell causes harm to a customer. Insurance coverage can help cover the cost of lawsuits and settlements.

In conclusion, insurance is a critical component of any successful business, and bicycle shops are no exception. It protects the business owner and the assets they have invested in and helps to ensure their long-term stability and success.

What Type Of Insurance Do Bicycle Shops Need?

To protect their business, a bicycle store should be covered by the following bicycle shop insurance policies:

Commercial General Liability: General liability insurance protects your cycling store from another person's claims of bodily injury, medical costs and property damage.

An example would be a customer got injured while taking a test ride (the retailer should make sure they have a properly drafted Release of Liability and rental/test ride agreement), or a customers brakes failed after you did a tune up. General liability also protects you against 'slip and fall' type claims.

Product Liability: As a bike store owner, as the seller - you can held liable for placing a defective product into the hands of a consumer. If you have responsibility for a product defect that causes injury, you can be sued along with manufacturer.

Business Property Insurance: This will protect your bike store from damage to your bikes, accessories, fixtures, inventory and more from destruction which can be caused by storms, theft or severe weather.

This coverage option is going to protect your business from such costs you would otherwise be paying out of pocket to repair or replace.

Commercial Crime: Crime insurance covers you bike store's money, securities and other property against a variety of criminal acts, such as employee theft, robbery, forgery, extortion and computer fraud. This bicycle shop insurance is very important if you are in a high crime zip code.

Commercial Auto: If you use vehicles for your business to pick up or deliver, commercial auto insurance is an important coverage. If you or an employee is sued following a serious accident in a car or truck you own, liability insurance helps pays for the injuries or damages.

Business Owners Policy: A business owner's policy, or BOP, combines business property and general liability insurance and business income in one policy. A BOP bundles these and other useful coverage for small business into one affordable bicycle shop insurance policy.

Workers' Compensation: Workers comp is required in most states for any non-owner or partner employees. Employees can get hurt on the job. If they do, workers comp will protect you, and pay for medical bills, lost wages, time off, and even pending lawsuits if a former or disgruntled employee tries to make false claims about an injury.

This is extremely beneficial if an employee has to miss time off work due to an injury, as this optional coverage will pay their wages while they aren't able to work in the store.

Commercial Umbrella - Also called excess liability coverage when added to your bicycle shop insurance policy.

This is for the bike store owner who wants a higher level of protection. If lawsuits take place, if you have to go to court, if there is major damage or injuries which occur in your shop - this policy will cover any costs which exceed the level of coverage you purchased with your liability protection.

Cyber Liability - This bicycle shop insurance policy covers your liability for a data breach where your customers' personal information, such as Social Security or credit card numbers, is exposed or stolen by a hacker or other criminal.

Bicycle Store's Risks & Exposures

Bicycle Store

Premises liability exposure comes from slips and falls due to public access to the premises. Bicycles are unstable and can easily overturn when hit. Supervision of customers as they "try out" the bicycles is important to prevent falls. Floor coverings should be in good condition, with no frayed or worn spots on carpet and no cracks or holes in flooring.

Sufficient exits must be provided and be well marked, with backup lighting systems in case of power failure. If equipment is rented, it must be reconditioned before it is rented again. If vendors provide services, the store should require certificates of insurance verifying appropriate limits of liability.

Any exposure to competitions, excursions, tours, or events, particularly sponsorship of events held outside the United States, needs careful evaluation as the shop can incur substantial liability from off-premises operations.

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, especially if there is a "test area" for customers to use. If the business is open after dark, there should be adequate lighting and appropriate security for the area.

Personal injury exposure can come from apprehending and detaining shoplifters. Shoplifting procedures must be fully understood and utilized by all employees.

Products liability exposure is normally high since the shop provides assembly and repair of bicycles. Compliance with all manufacturers' instructions is critical. Direct importing and customizing will increase exposure to that of a manufacturer. Foreign-made items should come from a domestic-based wholesaler.

Workers compensation exposure is from lifting which can cause back injury, hernias, 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. Equipment used in repair operations should be appropriately maintained to prevent injury.

In any retail business, hold-ups can occur. Employees should be trained to respond in a prescribed manner. The assembly, repair and customization may introduce metalworking that will require eye protection. If employees participate in activities such as competitions or excursions off premises, proper training and use of safety equipment is critical to prevent injury.

Property exposures are due to flammables such as lubricants, oils, degreasers, and solvents used in assembly and repair operations. They must be properly stored, separated, and controlled. Theft can be a concern due to the street market and high value of bicycles. These thefts are often from younger criminals who may vandalize the premises during a burglary. Appropriate security measures should be present 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.

Crime exposures are from employee dishonesty and loss 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 reconciliations. 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, bailees customers if the store accepts customers' items for repair, computers to transact sales and monitor inventory, exhibitions and goods in transit if the store takes goods to trade shows or other off-premises events, and valuable papers and records for vendors' and customers' records. Backup copies of all records, including computer records, should be made and stored off premises.

Business auto exposure can be high if delivery services are provided. Anyone who uses a vehicle must have a valid license and acceptable MVR. Vehicles should have regular maintenance with records kept. If there is no delivery service, the exposure will be limited to hired and nonownership liability for employees running errands.

What Does Bicycle Shop Insurance Cover & Pay For?

Bicycle Shop Insurance Claim Form

There are several reasons why bicycle shops may face lawsuits, including:

Accidents or injuries: Bicycle shops may be held liable if a customer or third party suffers an accident or injury due to a defective bicycle or bicycle component sold or serviced by the shop. For example, if a customer falls off a bicycle due to a faulty brake system that was installed or serviced by the shop, the shop may be sued for damages.
How insurance can help: General liability insurance can protect bicycle shops by covering the costs of legal defense and settlement or judgment if they are found liable for accidents or injuries caused by defective bicycles or bicycle components.

Negligence: Bicycle shops may be sued for negligence if they fail to provide proper maintenance, repairs, or assembly of bicycles, resulting in injuries or accidents. For example, if a bicycle shop fails to tighten the handlebars properly, leading to a customer crashing and getting injured, the shop may be held liable for negligence.
How insurance can help: Professional liability insurance, also known as errors and omissions (E&O) insurance, can provide coverage for bicycle shops in case of claims arising from negligence or mistakes in providing maintenance, repairs, or assembly services. It can cover legal defense costs, settlements, or judgments.

Product liability: Bicycle shops may face lawsuits related to product liability if they sell bicycles or bicycle components that are defective or unsafe, causing injuries to customers or third parties. For example, if a bicycle shop sells a bicycle with a defective frame that breaks while the customer is riding, resulting in injuries, the shop may be held liable for product liability.
How insurance can help: Product liability insurance can provide coverage for bicycle shops in case of claims related to defective or unsafe products. It can cover legal defense costs, settlements, or judgments.

Property damage: Bicycle shops may be sued for property damage if they cause damage to a customer's property or other third-party property while providing maintenance or repair services. For example, if a bicycle shop accidentally scratches a customer's bicycle while performing repairs, the shop may be held liable for property damage.
How insurance can help: General liability insurance can provide coverage for property damage claims, including the cost of legal defense and settlements or judgments.

Slip and fall accidents: Bicycle shops may face lawsuits if a customer or third party slips and falls on their premises, resulting in injuries. For example, if a customer slips on a wet floor in a bicycle shop and suffers injuries, the shop may be held liable for the slip and fall accident.
How insurance can help: General liability insurance can provide coverage for slip and fall accidents, including legal defense costs, settlements, or judgments.

In each of these examples, insurance can help bicycle shops by providing financial protection against the costs of legal defense, settlements, or judgments. It's essential for bicycle shops to carry appropriate insurance coverage to safeguard their business and assets from potential lawsuits and financial losses. However, it's important to note that insurance policies and coverage may vary, and it's recommended to consult with an insurance professional to understand the specific terms and conditions of the insurance coverage.

Commercial Insurance And Business Industry Classification

5941: Sporting Goods Stores and Bicycle Shops

Division G: Retail Trade | Major Group 59: Miscellaneous Retail |Industry Group 594: Miscellaneous Shopping Goods Stores

5941 Sporting Goods Stores and Bicycle Shops: Establishments primarily engaged in the retail sale of sporting goods, sporting equipment, and bicycles, bicycle parts, and accessories. Retail establishments primarily engaged in selling motorized bicycles are classified in Industry 5571, and those engaged in the retail sale of athletic footwear are classified in Industry 5661. Establishments primarily engaged in repairing bicycles are classified in Services, Industry 7699, and those renting bicycles are classified in Industry 7999.

  • Ammunition-retail
  • Backpacking, hiking, and mountaineering equipment-retail
  • Bait and tackle shops-retail
  • Bicycle and bicycle parts dealer except motorized-retail
  • Bowling equipment and supplies-retail
  • Camping equipment-retail
  • Exercise apparatus-retail
  • Firearms-retail
  • Fishing equipment-retail
  • Golf goods and equipment-retail
  • Golf professionals operating -retail stores
  • Gymnasium equipment-retail
  • Hunters'equipment-retail
  • Playground equipment-retail
  • Pool and billiards table stores-retail
  • Riding goods and equipment-retail
  • Saddlery stores-retail
  • Skiing equipment-retail
  • Skin diving and scuba equipment-retail
  • Sporting goods stores-retail
  • Tennis goods and equipment-retail

Bicycle Shop Insurance - The Bottom Line

As a bike shop owner, you need to consider all policy options when choosing an insurance provider for your bicycle shop insurance policy.

Additional Resources For 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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