Bridal Shop Insurance Policy Information
Bridal Shop Insurance. Would-be brides dream of their wedding days since the time they are old enough to play dress-up, and as a bridal shop owner, you're tasked with making part of that day a reality. In your role of providing women with the right gowns and altering those gowns for them, you are tasked with a major duty, and emotions can run high among future brides.
If you are the owner of a bridal shop, then bridal shop insurance is important, since a happy client can quickly turn into a "bridezilla" if something goes wrong to sour her big moment.
An independent insurance agent can help you determine if bridal shop insurance is right for your particular business model, and which types of insurance you need. Let's run down the basics of what you should buy to be covered.
Bridal Shop insurance protects your store 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 bridal shop insurance questions:
- How Much Does Bridal Shop Insurance Cost?
- Why Do Bridal Stores Need Insurance?
- What Type Of Insurance Do Bridal Shops Need?
How Much Does Bridal Shop Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small bridal shops ranges from $47 to $59 per month based on location, size, payroll, sales and experience.
Why Do Bridal Stores Need Insurance?
The bridal shop industry is a huge market that generates roughly $4 billion in revenue every year and employs more than 30,000 people. But what could possibly go wrong in the innocuous environment of a retail store? As it turns out, plenty.
While the loss or destruction of a bride's dress prior to her big day with no means to replace it is a worst-case scenario, this has happened more than once to unsuspecting brides. In the bridal industry, it really is all about the dress.
Brides spend their time pouring over bridal catalogs and magazines, searching for 'the' dress for their special once-in-a-lifetime event. Should that day arrive and the dress is less than expected, the anguish that she feels is hard to measure.
Other reasons that brides may litigate against your shop include: slips and falls and other injuries, failing to get an order ready in time, faulty alterations, poor workmanship, and breach of contract.
Without a doubt, the absolute worst thing that can happen in a bridal shop is an accident or disaster that leads to a lost or destroyed dress just prior to the big day. In this industry, truly, it's all about the dress.
Brides-to-be spend countless hours poring over catalogs, idea books and Pinterest in search of the perfect dress for their wedding day. If that day comes and the dress is not available or as expected, the emotional distress and anguish the bride will feel is immeasurable.
The average wedding runs more than $31,000, as of 2014, making them costly affairs, and anytime money is involved, litigation can become a fast and hard reality. How can you protect yourself as a bridal shop owner?
What Type Of Insurance Do Bridal Shops Need?
If your shop is like most, it is filled to the brim with hundreds of gowns for brides and their bridal parties, accessories, veils, and more. When you opened your business, you likely made a huge investment in inventory, and now you need to protect that inventory in case the unexpected happens. Commercial property insurance is important. Be sure that you own:
- Commercial property insurance. If you are the owner of the building where you do business, then you must buy bridal shop insurance that protects the structure. If you are leasing the building and have spent money on any improvements, such as window treatments or flooring, then make sure that your agent is aware of those improvements too.
- Business property insurance. You need property insurance to cover your inventory, equipment, furnishings, displays, and other items housed inside the store. This coverage should extend to a wide range of potential perils, including fire, theft, vandalism, storm damage, and more.
- Flood coverage. Floods can be devastating, especially if you live in a low-lying or flood prone area. Be sure to buy a separate commercial flood insurance policy.
Liability Insurance for the Bridal Shop Owner
Liability insurance is another must-have policy. Just one lawsuit decided against many bridal shop owners can spell financial disaster and in some cases leave the shop closing its doors.
Buy bridal shop insurance that protects you from judgements and awards in the event you end up on the receiving end of a lawsuit. Your policy should also cover any legal fees for handling your case in court.
You should also purchase commercial general liability insurance coverage. This is a comprehensive package that covers premise liability and product liability. Premises liability takes care of claims arising from injuries or any property damage caused by you or your employees or that occurs on your property.
Product liability protects you if the products you sell and alter cause injury.
Additional Bridal Shop Insurance Policies
Professional liability insurance. Should something go awry when working with a customer and the outcome of your transaction is not as planned, this coverage is invaluable. For example, if you shorten the bride's gown too much, then you're covered for the damage. This is also know as errors and omissions coverage.
Commercial Insurance And Business Industry Classification
- SIC CODE: 5621 Women's Clothing Stores
- NAICS CODE: 448190 Other Clothing Stores
- Suggested ISO General Liability Code(s): 11127, 11128
- Suggested Workers Compensation Code(s): 8008
Description for 5621: Women's Clothing Stores
Division G: Retail Trade | Major Group 56: Apparel And Accessory Stores | Industry Group 562: Women's Clothing Stores
5621 Women's Clothing Stores: Establishments primarily engaged in the retail sale of a general line of women's ready-to-wear clothing. This industry also includes establishments primarily engaged in the specialized retail sale of women's coats, suits, and dresses.
- Bridal shops, except custom-retail
- Clothing, ready-to-wear: women's-retail
- Dress shops-retail
- Maternity shops-retail
- Ready-to-wear stores, women's-retail
Bridal Shop Insurance - The Bottom Line
These are just a few basic types of insurance to consider. Commercial auto, worker's comp, and others may be necessary. Speak to a licensed agent to determine where there are gaps in coverage and devise a plan to cover your business from a 360-degree standpoint.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.
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.
- Adult Novelty
- Antique Dealers
- Appliance & Electronics Store
- Art Gallery
- Bicycle Shop
- Boat Dealers
- Book Store
- Bridal Shop
- Candy Confectionery Store
- Carpet Store
- Clothing Store
- Collectibles Memorabilia Store
- Convenience Store
- Cosmetics Store
- Dry Cleaning
- Equipment Rental
- Funeral Home
- Furniture Store
- Gift Store
- Hardware Store
- Home Improvement Store
- Hotel Motel
- Ice Cream Shop
- Jewelry Store
- Lingerie Store
- Luggage Store
- Music Store
- Office Supply Store
- Paint & Wallpaper Store
- Pawn Shop
- Pet Store
- Pharmacy Liability
- Plumbing Supplies Fixtures Store
- Scrap Metal Dealers
- Sewing Store
- Shoe Store
- Sporting Goods Store
- Stationary Store
- Thrift Store
- Ticket Agency
- Tire Store
- Tobacco Store
- Toy Store
- Travel Agency
- Tuxedo And Formal Wear Rental Store
- Vending Machine Operators
- Wig Store
Retail stores are susceptible to premises liability claims because of customer traffic, but large department and specialty stores are more susceptible than most.
All retail stores have significant property exposures. The on-hand stock represents a considerable investment, but the amount on hand fluctuates seasonally. For this reason, physical damage insurance on this property must be arranged carefully. When the insured occupies a non-owned building, insurance coverage must be arranged for the insured's interest in extensive improvements and betterments made to the premises.
Crime insurance, in the form of employee theft and money and securities coverage, is also very important.
The businessowners policy was designed with retail exposures and operations in mind. For this reason alone, it should always be the first type of package coverage to consider. However, for those risks not eligible for the business owners policy program, the commercial package policy (CPP) is a practical and convenient way to combine a number of coverages into one policy.
Retail businesses generate income through interaction with customers. This interaction is also how a customer can sustain an injury and then sue the retailer for damages. Hazards, exposures and operations both on premises and off are important and must be covered, but liability the retailer may incur because of the merchandise sold must also be considered and insurance protection arranged.
Inventory or stock is the major property exposure for most retail operations. Because stock values tend to fluctuate or have significant peaks at certain times of the year, value reporting or peak season valuation options should be considered. Business income coverage, including business income from dependent properties coverage, may mean the difference between a retail operation staying in business or being forced into bankruptcy following a loss.
When the insured occupies a non-owned building, insurance coverage must be arranged for the insured’s interest in extensive improvements and betterments made to the premises.
Most retail businesses offer endless opportunities for a variety of criminal activities. For this reason, the coverages needed must be carefully evaluated. Holdup and robbery losses may be the most obvious concerns but employee theft, fraud and counterfeit money losses are also serious issues that cannot be dismissed.
Retail businesses are gaining greater exposure to international issues because of the growth in sales via the internet. As these sales increase, the added exposures faced by these retailers must be evaluated. While their operating horizons are expanding so are their potential loss exposures.
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.