Hardware Store Insurance

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Hardware Store Insurance Policy Information

Hardware Store Insurance

Hardware Store Insurance. Hardware stores sell a variety of merchandise for professional or do-it-yourself maintenance and repair projects for homeowners, renters, handymen, and contractors. Products offered include tools, building materials and supplies, lumber, plumbing, heating, air conditioning and electrical fixtures. Some also sell sporting goods, bicycles, gardening supplies, lawnmowers, prepackaged fertilizers, insecticides, pesticides, outdoor furniture, plants, clothing, toys, and automotive supplies.

Some operations fill and refill LP gas for campers and grills or provide a pickup and dropoff point for an LP gas dealer. Many hardware stores provide for the rental of various types of equipment from carpet cleaners to yard and garden machinery, to chainsaws or other equipment.

Most hardware stores offer repair services for the items they carry. Some offer window glass and screen replacement services if the customer brings the frame to the store. Delivery and contracting services for interior design, painting, wallpapering, flooring installation, or other building projects may be available, either through their own employees or through independent contractors.

As the owner of a hardware store, you offer your customers and your community a necessary service. But are you also considering the liabilities you face - the same liabilities that all business owners face in today's economy? We live in an increasingly litigious society; there is a subsect of people who are continually on the lookout for reasons to be offended or to claim injury or damage.

And there are also many real perils involved in business operation that can cause injury or damage to those that you deal with on a daily basis. For these reasons, it is important to purchase the right level of hardware store insurance for your business.

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

How Much Does Hardware Store Insurance Cost?

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

Why Do Hardware Stores Need Business Insurance?

As of 2014, there are around 16,000 hardware stores doing business in the U.S., providing jobs for upwards of 140,000 people. The hardware store industry accounts for around $24 billion each year in revenue. As you can see, this lucrative business leaves lots of room for potential liabilities that can cripple your business and leave you reeling financially.

Although any hardware store seems like a pretty innocuous place, the truth is that perils lurk around every corner. Some of these potential mishaps can really threaten your hardware store's finances and leave you in a bad position. For instance:

  • A customer may slip and fall on a freshly mopped floor, becoming injured when they collide with the sharp edges of shelving, fixtures, or other items.
  • Costly computer equipment may become inoperable because of a power surge or operator error.
  • Your employee may cause a serious automobile accident while out making a delivery, and you'd be left on the hook for any damages arising as a result.

These are just a few of the examples of potential problems that could result in liability or damage claims against you. Discussing your potential hazards with a licensed agent makes senses. Your agent can review your individual risks and risk tolerance to determine which types of liability and property policies as well as other hardware store insurance your hardware store may need.

Property Insurance for Hardware Stores

A commercial insurance policy is a necessary purchase for all hardware store owners. This hardware store insurance policy is typically sufficient to provide the full coverage your store needs for its inventory and all of your equipment, including your computers, fixtures, shelving, cash registers, and more. Because inventory changes over time, it is invariably a good idea to sit down with an agent and review your existing coverage every few years to make sure you are still protected to the fullest.

Chances are good that your hardware store owns several pieces of expensive machinery such as paint shakers and key-cutting equipment. For this reason, protecting that valuable property with a supplemental hardware store insurance policy known as equipment breakdown insurance makes sense. This type of coverage, sometimes referred to by the name "boiler and machinery coverage" can compensate you for any breakdown in this equipment. Air conditioning, fuse boxes, and other types of mechanical equipment in the store can be covered by this policy as well. It may even compensate you for the income you lose if this machinery is on the fritz and being repaired.

Bear in mind that almost all hardware store insurance policies have an exclusion for flood damage. If your business lies in a flood-prone region, look into a supplement for commercial flood insurance.

Liability Insurance for Hardware Stores

A main component of any hardware store insurance policy is commercial general liability coverage. This is a type of coverage that provides coverage for legal defense costs and any financial awards associated with bodily injury claims or property damage claims against your business. A common claim is 'slip and fall'. In addition, if your business is sued because of selling a product that causes property damage or bodily injury, this policy also usually offers product liability coverage.

Although a general liability policy is quite sufficient for some businesses, it does not cover all potential events that may lead to claims. You may need to buy some supplemental coverage types along with your hardware store insurance insurance. Some to consider:

Pollution Liability Coverage: If your store sells a lot of chemicals, including fertilizers and other chemicals, you may need to look into pollution liability coverage.

Commercial Auto: Protect your company-owned vehicles with commercial auto coverage.

Hired and Non Owned Autos: If you rent trucks or if employees use personal autos in the course of doing business for you, this policy provides protection against any liabilities, damages, and injuries that may result.

Additional Policy Types

Beyond the purchase of property and liability policies, you may want to discuss your need for the following additional policy types with your agent. These include:

Worker's Compensation - Workers comp is required in most states by law for any non-owner or partner employees. workers comp pays lost wages and medical costs when an employee becomes injured or ill due to a work-related peril.

Business Income - If you experience a business stoppage due to a covered peril, then this hardware store insurance provides income while you rebuild, move, or otherwise get your business up and running again.

Employment Practices Liability Insurance (EPLI) - Avoid the damage when someone claims you were unfair in your employment practices with this coverage.

Hardware Store's 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. Flooring 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. 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.

If employees make deliveries or install purchases for customers, there could be 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 low unless there is direct import of products or assembly and repair of equipment and bicycles. Foreign-made items should come from a domestic-based wholesaler. Any direct importer should be considered as a product manufacturer.

Environmental impairment exposure comes from the mixture of paints, disposal of insecticides or pesticides, and any potential for used oil, degreasers, solvents, and batteries. All disposal must meet EPA standards.

Workers compensation exposure is from lifting that can cause back injury, hernias, sprains, and strains, and also 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. Housekeeping in storage areas, especially during peak times, is vital in preventing trips and falls.

If employees are involved in processing, repair work or lumberyard operations, there is the exposure to cuts, puncture wounds, burns and eye injuries. Safety measures such as goggles must be in place. In any retail business, hold-ups are possible so employees should be trained to respond in a prescribed manner. Drivers of delivery trucks can be injured in accidents. Installers can suffer knee and foot injuries, and eye, skin and lung irritations from exposure to adhesives and other chemicals.

Property exposures can be high due to large amounts of combustible materials and the operations performed on premises, which can include repair services and LP gas filling, refilling, or storage. All flammables must be properly stored, separated, and controlled. If the store sells ammunition or loads black powder, the exposure increases significantly. Proper controls must be in place.

The electrical load may be heavy if electrical lighting, equipment and machinery is sold due to floor models being plugged into numerous outlets for customers to try out prior to purchase. Wiring must be up to date and meet current codes. There should be no smoking on premises.

If there are high-value or target items such as bicycles, sporting equipment, guns, ammunition and machinery, 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.

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 to transact sales and monitor inventory, equipment floater if forklifts are used in the warehouse, goods in transit if deliveries are made, 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 can be high if delivery services are provided. Drivers should have a valid license and acceptable MVR and be trained in handling unwieldy loads that may shift during transport. Vehicles must be regularly maintained with full documentation kept.

Commercial Insurance And Business Industry Classification

  • SIC CODE: 5251 Hardware Stores - Retail
  • NAICS CODE: 444130 Hardware Stores
  • Suggested ISO General Liability Code(s): 13716
  • Suggested Workers Compensation Code(s): 8010

Hardware Store Insurance

These are just a few of the types of coverage you may need. Talk to your agent to get a full picture of the needs you have and how to best meet those needs when devising the right hardware store insurance package for your store.

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.

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

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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