Furniture Store Insurance Policy Information
Furniture Store Insurance. Furniture stores sell new, used, unpainted, or naked furniture along with mattresses, decorative items, floor coverings, window treatments, and electrical appliances. Some may offer to repair, strip, reupholster, paint or refinish used or naked furniture; others design and manufacture custom-made items.
Interior design services may be offered, or the store may manufacture and install kitchens, bathrooms, shelving and cabinets. Stores selling larger items may offer delivery, set-up and installation services or may contract these out to others.
As a furniture store owner, it is important for you to maintain insurance that adequately covers any potential liability and claims that may arise from doing business - a step that ensures that you remain profitable, no matter the financial climate.
Work with an independent insurance agent to help you craft a furniture store insurance policy that protects both you and your business from the exposures and perils you face in day-to-day operations.
Furniture store insurance protects your shop 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 furniture store insurance questions:
- What Is Furniture Store Insurance?
- How Much Does Furniture Store Insurance Cost?
- Why Do Furniture Stores Need Insurance?
- What Type Of Insurance Do Furniture Stores Need?
- What Are Furniture Stores Risks & Exposures?
- What Does Furniture Store Insurance Cover & Pay For?
What Is Furniture Store Insurance?
Furniture store insurance is a type of insurance policy designed specifically for businesses that sell furniture. This insurance provides coverage for the furniture store's physical assets such as buildings, inventory, and equipment. It also provides liability coverage for any legal claims that may arise from customer accidents or injuries that occur on the store's premises.
Furniture store insurance can include coverage for theft, fire, natural disasters, and other types of property damage. Additionally, it may also include coverage for loss of income and business interruption if the furniture store is unable to operate due to a covered loss.
How Much Does Furniture Store Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small furniture stores ranges from $47 to $69 per month based on location, type of furniture sold, payroll, sales and experience.
Why Do Furniture Stores Need Insurance?
There nearly 30,000 furniture stores doing business in the U.S. These stores employ nearly 217,000 people. The sector generates roughly $60 billion in revenue total annually across the country. This makes the business a broad one, and the risks faced by owners of these stores are likewise broad.
Because of this, you must have the right furniture store insurance policies in force at all times to prevent your business from financial downfall if you become the target of a lawsuit. Following are some of the most important furniture store insurance coverage types.
What Type Of Insurance Do Furniture Stores Need?
Liability Insurance For Furniture Stores
Nothing can wreck a business' financial outlook like getting hit with a liability claim. If you don't have a liability policy in force when someone is injured at your showroom or in your parking lot, then you can be hit with a major award that can send you into bankruptcy.
The right furniture store insurance policy can provide for legal defense costs, court expenses and financial awards to injured parties. Some types of liability insurance to consider include:
- Commercial General Liability: This covers most common liabilities that you might face such as slip-and-fall claims.
- Product Liability: This furniture store insurance policy provides coverage for property damage or injuries caused by defective or faulty products you sell.
- Advertising Liability: Cover yourself against claims of trademark or copyright infringement with this type of policy.
- Personal Injury: Provide protection for claims of slander and libel with personal liability insurance.
- Commercial Auto: If you have a delivery truck or van, protect it with an auto liability policy that's specifically structured for commercial use.
- Cyber Liability: Protect your clients and customers from cyber attacks with this policy. This coverage provides protection for damage and loss occurred when someone hacks into your system and retrieves credit or other information.
Commercial Property Insurance For Furniture Stores
Your store is likely stocked with a lot of high-quality merchandise. Your business also owns property that you must protect, such as equipment, shelving, fixtures, and more. These items must be protected with insurance. Your independent insurance agent will likely recommend one or all of the following types of coverage for your furniture store business:
Building Insurance - This coverage is important if you own the store in which you do business or if you own the warehouse where you keep your inventory. If you rent your space, you may also need to buy this coverage if the owner does not maintain it for you as part of your lease.
Business Property Insurance - Cover the contents of your furniture store or the warehouse where your furniture is stored with property insurance. This type of furniture store insurance coverage provides protection for hazards like fire, vandalism and heavy winds. This may include protection for things such as light fixtures, computers, furniture, fixtures or even flooring.
Flood Insurance - Provides coverage against flood and water damage from flooding with flood insurance. Flood water can impact your furniture store in a major way. You can supplement your property coverage with a flood insurance policy, which is sometimes available through the National Flood Insurance Program.
Earthquake Insurance - For damage that is caused by earthquakes, earthquake insurance is a must. If you do business within an area of the country where seismic activity is a problem, then a supplemental policy that guards against financial loss from earthquakes can be important.
Other Types of Furniture Store Insurance Coverage
Beyond property coverage and liability coverage, your furniture store might want to consider business income insurance. If your business must close due to a covered peril, then this insurance can provide financial assistance until you can reopen.
Worker's compensation is also a good type of policy to own, and it is required by most states. workers comp protects your employees from loss if they become ill or injured at work.
What Are Furniture Stores Risks & Exposures?
Premises liability exposure comes from slips and falls due to public access to the premises. Aisles must be adequate and free of debris. Floor coverings must be in good condition with 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. Smaller goods should be kept on easily reached shelves so that customers do not pull down items on themselves. As children may climb, jump or play with floor displays, there should be enough employees on duty to supervise activities of customers.
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.
Interior decorators and employees making deliveries, setting up, and installing purchases for customers present a property damage exposure to the customers' premises. If the store recommends independent contractors, certificates of insurance should be maintained to verify that the contractors carry adequate limits of liability.
Products liability exposure is normally moderate unless bedding or children's and infants' furniture is sold or there is direct import of the products. All applicable standards and regulations must be met. If there is customization, the exposure will become closer to that of a manufacturer than a retailer. Foreign-made items should come from a domestic-based wholesaler. Any direct importer should be considered as a product manufacturer.
Workers compensation exposure comes from lifting which can cause back injury, hernias, sprain, and strains, from slips and falls, and from cuts and eye injuries from glass breakage. Employees should be provided with safety equipment, trained on proper handling techniques, and have conveying devices available to assist with heavy lifting. If there are woodworking or repair operations, the workers may be exposed to cuts, punctures, amputations eye injuries, and skin or lung irritation.
Adequate protection using guards and goggles must be required. Housekeeping in storage areas, especially during peak times, is vital in preventing trips and falls. In any retail business, hold-ups are possible. Employees should be trained to respond in a prescribed manner. Drivers of delivery trucks can be injured in accidents, be crushed by heavier objects, or fall on stairs or from tailgates. Installers can fall from heights, be injured by falling objects, or be electrocuted while working on wiring.
Property exposures are from the heavy electrical load due to floor models being plugged into numerous outlets for display. Wiring must be up to date and meet current codes. Furniture and home furnishings are extremely flammable and susceptible to damage from fire, smoke, and water. Flammables, such as paints, varnishes, strippers, degreasers, and solvents used in repair operations must be properly stored, separated, and controlled.
Woodworking and painting operations may take place on premises. Plastics will feed the fire and cause an oily smoke which can permeate items, reducing any salvage opportunities. Wood, fabric and packing materials add to the fire potential. Forklifts used inside the warehouse should be recharged in an area with good ventilation, separated from flammables. There should be no smoking on premises.
Breakage may be a concern if there are glass or other fragile items. If there are high-value items, 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.
Business interruption is a concern as sales may peak at particular times during the year.
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 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.
Inland marine exposures are from accounts receivable if the store offers credit, computers coverage if electronic devices are used to transact sales and monitor inventory, equipment floater if forklifts are used in the warehouse, goods in transit, 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.
Commercial auto exposure comes from both pickup and delivery. Drivers should have a valid license and acceptable MVR. Vehicles must be regularly maintained with full documentation kept.
What Does Furniture Store Insurance Cover & Pay For?
Furniture stores can face various lawsuits, and these can include:
Product liability claims: If a customer is injured or suffers damages due to a faulty or defective furniture item, they may sue the store for product liability. This can happen if the furniture was poorly designed, manufactured, or labeled. Insurance can protect the store by providing coverage for legal fees and compensatory damages that the store may be required to pay to the injured party.
Slip and fall accidents: Customers may also sue furniture stores for slip and fall accidents that occur on their premises. This can happen if the store failed to maintain a safe environment, such as by not cleaning up spills promptly or not fixing broken tiles. Insurance can help the store pay for any damages or settlements that they may be required to pay due to such accidents.
Breach of contract claims: Furniture stores may also face lawsuits for breach of contract if they fail to deliver furniture on time, deliver defective furniture, or fail to honor warranty agreements. Insurance can help cover the costs of legal fees and any damages that the store may be required to pay to the aggrieved party.
Property damage claims: If a store employee damages a customer's property during delivery or installation of furniture, the store may be sued for property damage. Insurance can protect the store by providing coverage for the cost of repairs or replacements.
Employee-related lawsuits: Furniture stores can also face lawsuits filed by their employees, such as claims of discrimination or wrongful termination. Insurance can provide coverage for legal fees and any settlements or judgments that the store may be required to pay in such cases.
In each of these examples, insurance can help protect furniture stores from the financial impact of lawsuits. By having appropriate insurance coverage, a store can mitigate the risk of financial loss and continue operating their business without undue financial strain.
Commercial Insurance And Business Industry Classification
- SIC CODE: 5712 Furniture Stores
- NAICS CODE: 442110 Furniture Stores
- Suggested Workers Compensation Code(s): 8044 Store - Furniture & Drivers
5712: Furniture Stores
Division G: Retail Trade | Major Group 57: Home Furniture, Furnishings, And Equipment Stores | Industry Group 571: Home Furniture And Furnishings Stores
5712 Furniture Stores: Establishments primarily engaged in the retail sale of household furniture. These stores may also sell home furnishings, major appliances, and floor coverings.
- Beds and springs-retail
- Cabinet work on a custom basis to individual order-retail
- Cabinets, kitchen: not built in-retail
- Furniture, custom made-retail
- Furniture, household, with or without furnishings and appliances-retail
- Juvenile furniture-retail
- Mattress stores, including custom made-retail
- Outdoor furniture-retail
Furniture Store Insurance - The Bottom Line
Review your coverage needs with a licensed independent broker to determine if your portfolio contains the right levels and amounts of coverage for your individual needs. With the right insurance in place, you can rest assured that your furniture shop is completely guarded against perils that can and do arise during the course of business operation.
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.
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- Equipment Rental
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- Furniture Store
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- Hardware Store
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- Home Improvement Store
- Infant, Baby & Children's Clothing Stores
- Jewelry Store
- Lamp Stores
- Lingerie Store
- Luggage Store
- Meat Market & Butcher Shop
- Men's Clothing Stores
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- Paint & Wallpaper Store
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- Pharmacy Liability
- Plumbing Supplies Fixtures Store
- Poultry Dealers
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- Stationary Store
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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.