Cell Phone Store Insurance

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Cell Phone Store Insurance Policy Information

Cell Phone Store Insurance

Cell Phone Store Insurance. Cell phone stores are retailers dedicated to selling cellular telephones, which may be new or refurbished. In today's world, that means most cell phone stores mainly offer smartphones, although cell phone stores will also offer more basic models.

These stores will additionally typically sell ancillary products such as chargers, power banks, and cell phone covers, as well as facilitating the setting up of cell phone contracts with mobile service providers.

Cell phone and other personal communication device stores sell, lease and service a wide range of personal communication devices such as cell phones and mobile phone battery chargers. Many items are sold on a service contract basis.

The store may be independent or part of a regional or national chain that sells personal communication devices online as well as in stores like AT&T Mobility, Verizon Wireless, T-Mobile and others.

While numerous studies have tried to assess the impact of mobile phone radiation on human health from radio-frequency (RF) radiation, no definitive link has yet been consistently shown.

Given the fact that 97 percent of Americans own and use at least one cell phone, cell phone stores play an important role in the economy. These stores have the potential to grow into ventures that provide a consistent profit.

However, keeping in mind the value of the goods they sell, it is crucial for cell phone stores to take the risks they may face into account. Investing in cell phone store insurance is one of the most powerful steps mobile phone shops can take to protect their financial future.

What kinds of coverage do these stores require? Find out more in this brief guide.

Cell phone store insurance protects your mobile phone business 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 mobile phone store insurance questions:


How Much Does Cell Phone Store Insurance Cost?

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small mobile phone stores ranges from $57 to $79 per month based on location, size, revenue, claims history and more.


Why Do Cell Phone Stores Need Insurance?

Kids On Cell Phones

Insurance premiums can represent a financial burden - and for that reason, some small business owners will opt to only carry the basic types of insurance that are mandatory within their jurisdiction.

Because mobile phone stores face numerous risks, both universal risks and those unique to their branch of commerce, it is crucial to carefully consider your options. Having the right insurance plan can save your business from financial ruin if your cell phone store is impacted by a major peril.

A cell phone store may, for instance, fall victim to an act of nature. These large-scale catastrophes, such as earthquakes and tornadoes, can destroy your building, your inventory, and your valuable equipment almost overnight. Theft, vandalism, and accidents all pose serious threats to your property as well.

A third party, like a customer or vendor, may be injured on your premises, and workers, too, may be hurt on the job. Your cell phone store may face a costly lawsuit for any number of reasons, ranging from accidental copyright violations within marketing materials to selling a refurbished cell phone that later turned out to have been stolen.

These are just a few of the many perils that mobile phone stores may encounter. Although these and other risks can all lead to exorbitant costs, armed with the right cell phone store insurance coverage, your shop will be able to recover and continue thriving.


What Type Of Insurance Do Cell Phone Stores Need?

The exact types of coverage that cell phone stores need to carry depend on their individual circumstances and risk profile.

The location of your store, the crime rate in your jurisdiction, whether you exclusively sell new cell phones or also offer refurbished or second-hand cell phones, and your number of workers are all examples of factors that are going to impact your insurance needs.

That is why it is crucial to evaluate your needs together with a skilled commercial insurance broker, who can offer advice tailored to your business. Having said that, the key types of cell phone store insurance required include:

  • Commercial Property - When your physical assets - including your building and your inventory - are damaged in perils such as acts of nature, fire, and burst pipes, this essential form of insurance will shield your business from financial losses.
  • General Liability - This key form of cell phone store insurance protects your store in the event that you face third party bodily injury or property damage claims, generally relating to incidents that took place on your premises. It can cover your attorney fees, settlement payments, and other legal expenses.
  • Product Liability - When a product you have sold (allegedly) causes harm to a third party, you can be held responsible despite the fact that you did not manufacture the product. Product liability insurance helps manage the costs associated with related lawsuits.
  • Workers Compensation - Should an employee suffer a work-related injury, this form of coverage funds their medical bills and any lost wages.
  • Commercial Crime - When your cell phone store falls victim to crimes such as robbery or employee fraud, this type of coverage minimizes your out-of-pocket costs.

Be aware that they may have further cell phone store insurance needs. A commercial insurance broker who is familiar with your industry will be able to advise you further.


Cell Phone Store's Risks & Exposures

Mobile Phone Display

Premises liability exposure is high due to the number of visitors to the store. To prevent slips and falls, there should be good lighting and adequate aisle space. The stock should be on sturdy shelves that are easily accessible to customers so they do not pull items down on themselves.

Flooring should 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.

Enough exits must be provided and be well marked with backup lighting systems in case of power failure. Crowd control may be a concern if the store offers special cut-rate sales during peak seasons. Security must be adequate to prevent injuries. 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. There should be a disaster plan in place for unexpected emergencies.

Personal injury exposure includes allegations of discrimination and from apprehending and detaining suspected shoplifters, which may result in claims of assault and battery, false arrest or detention, unauthorized or intrusive searches, or wrongful ejection from the premises.

The use of closed-circuit camera systems prevents such incidents from evolving into a "he said, she said" situation.

Employees must be trained to deal with such delicate situations properly.

Products liability exposure is normally low unless the store reconditions and sells used items or directly imports any product. Foreign-made items should come from a domestic-based wholesaler. A direct importer should be considered as a product manufacturer.

Repair or reconditioning will add to the exposure. Some types of personal communication devices are incompatible with hearing aids. Employees should be trained on the uses and limitations of products sold.

Workers compensation exposures are moderate due to employees standing for long hours, the use of computers, and restocking which requires lifting. Continual standing can result in musculoskeletal disorders of the back, legs, or feet. Trips, slips, and falls are common.

When work is done on computers, employees are exposed to eyestrain, neck strain, and repetitive motion injuries including carpal tunnel syndrome. Lifting can cause back injury, hernias, sprains, and strains.

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 trips and falls.

Electrical shocks, cuts, and burns are hazards to repair or service employees. In any retail business, hold-ups are possible. Cleaning workers can develop respiratory ailments or contact dermatitis from working with chemicals.

In any retail business, hold-ups are possible. Employees should be trained to respond in a prescribed manner.

Property exposures come from electrical wiring and flammables such as lubricants, oils, degreasers,and solvents used in the repair operations. Wiring must be up to date and meet current codes. Circuitry in some devices can be easily damaged from smoke, water, and heat, resulting in a total loss even with a small fire.

There should be no smoking on the premises. Personal communication devices are small and easy to shoplift. The higher-priced devices become target items because of the demand in the marketplace.

Appropriate security measures should 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.

Crime exposures are from employee dishonesty and theft of money and securities from holdup or safe burglary. Background checks should be conducted on all employees handling money. There must be a separation of duties between persons handling deposits and disbursements and reconciling bank statements.

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.

Shoplifting detection devices in packaging, video surveillance, and requiring customers to leave bags at the front door when entering the store help reduce shoplifting. Two employees should be required to confirm the accuracy of deliveries from vendors.

Inland marine exposures are from accounts receivable if the store offers credit, bailees customers if the store checks bags from customers or offers repairs, computers to transact sales and monitor inventory, and valuable papers and records for customers' and vendor's information.

Backup copies of all records, including computer files, should be made and stored off premises.

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

Commercial Insurance And Business Industry Classification

  • SIC CODE: 3651 Household Audio and Video Equipment
  • NAICS CODE: 443142 Electronics Stores
  • Suggested ISO General Liability Code(s): 12393
  • Suggested Workers Compensation Code(s): 8017

Description for 3651: Household Audio and Video Equipment

Division D: Manufacturing | Major Group 36: Electronic And Other Electrical Equipment And Components, Except Computer Equipment | Industry Group 365: Household Audio And Video Equipment, And Audio

3651 Household Audio and Video Equipment: Establishments primarily engaged in manufacturing electronic audio and video equipment for home entertainment (including automotive), such as television sets, radio broadcast receivers, tape players, phonographs, and video recorders and players. This industry also includes establishments primarily engaged in manufacturing public address systems and music distribution apparatus. Establishments primarily engaged in manufacturing phonograph records and prerecorded audio tapes are classified in Industry 3652; those manufacturing telephone answering machines are classified in Industry 3661; those manufacturing motion picture reproduction equipment are classified in Industry 3861; and those manufacturing phonograph needles and cartridges are classified in Industry 3679. Establishments primarily engaged in manufacturing separate cabinets for home electronic equipment are classified in Major Group 25.

  • Amplifiers: radio, public address, or musical instrument
  • Audio recorders and players: automotive and household
  • Clock radio and telephone combinations
  • Clock radios
  • Coin-operated phonographs
  • Disc players, compact
  • Electronic kits for home assembly: radio and television receiving sets,
  • Home tape recorders: cassette, cartridge, and reel
  • Juke boxes
  • Loudspeakers, electrodynamic and magnetic
  • Microphones
  • Music distribution apparatus, except records or tape
  • Musical instrument amplifiers
  • Phonograph and radio combinations
  • Phonograph turntables
  • Phonographs, including coin-operated
  • Pickup heads, phonograph
  • Pillows, stereo
  • Public address systems
  • Radio and phonograph combinations
  • Radio receiving sets
  • Recording machines, music and speech: except dictation and telephone
  • Speaker systems
  • Tape players, household
  • Tape recorders, household
  • Television receiving sets
  • Turntables, for phonographs
  • Video camera-audio recorders, household
  • Video cassette recorders/players
  • Video triggers (remote control television devices)

Cell Phone Store Insurance - The Bottom Line

To learn more about the types of cell phone store insurance policies available, what limits you should carry and the costs - consult with a reputable broker that is experienced in commercial insurance.

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.

Small Business Information

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 InsuranceWhat 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 InsuranceWhat 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 InsuranceWhat 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 InsuranceWhat 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 InsuranceWhat 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 PoliciesWhat 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 InsuranceWhat 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 BondWhat 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
Small Business Commercial Insurance

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 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

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.


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