Home Improvement Store Insurance Policy Information
Home Improvement Store Insurance. Home improvement stores carry everything you would need to make commercial property and home upgrades. It includes electrical supplies, plumbing supplies, hand & power tools, appliances, supplies for gardening and yard work, flooring, windows, doors, toilets, sinks, paint, fixtures and many more accessories and supplies.
While you might have a profitable business selling many products, you're also at the risk of shoplifting, customer slip and fall accidents and other many other liabilities. To be on the safe side, you can protect your business from such risks with home improvement store insurance.
Home improvement store insurance protects your shop from lawsuits with rates as low as $57/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked home improvement store insurance questions:
- What Is Home Improvement Store Insurance?
- How Much Does Home Improvement Store Insurance Cost?
- Why Do Home Improvement Stores Need Insurance?
- What Type Of Insurance Do Home Improvement Stores Need?
- What Does Home Improvement Store Insurance Cover & Pay For?
What Is Home Improvement Store Insurance?
Home improvement store insurance is a type of liability insurance that covers home improvement stores against potential claims and lawsuits arising from damages caused by products sold at the store.
This insurance provides protection against claims related to property damage, personal injury, and product defects. It also covers legal expenses, settlements, and judgments, as well as the cost of defending against lawsuits.
This insurance is important for home improvement stores, as they are often held liable for damages caused by their products, even if they did not manufacture the products themselves.
How Much Does Home Improvement Store Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small home improvement stores ranges from $57 to $79 per month based on location, size, payroll, sales and experience.
Why Do Home Improvement Stores Need Insurance?
Home improvement stores need insurance to protect against potential losses and liabilities. These stores deal with a large volume of products, equipment, and customers, and any one of these elements can create a risk of liability or loss. Some common risks that home improvement stores may face include:
Property damage: The store building and its contents may be damaged due to natural disasters, theft, fire, or other events.
Product liability: If a product sold in the store causes harm to a customer, the store may be liable.
Employee injuries: Employees may be injured while working in the store, which could result in workers' compensation claims.
Customer injuries: Customers may slip, trip, or fall while shopping in the store, and the store may be held liable for their injuries.
Cyber attacks: Home improvement stores may store sensitive customer data, making them vulnerable to cyber attacks and data breaches.
Having insurance coverage can help home improvement stores manage these risks and protect their business from financial losses.
What Type Of Insurance Do Home Improvement Stores Need?
Due to various risks you might be exposed to, you need to choose multiple home improvement store insurance coverages. Consider the following home improvement store insurance:
Commercial General Liability - The insurance policy you purchase should have none of these excluded; products liability, completed operations and premises liability. Product liability is for damage from the goods you sold, while premises liability is for the injuries to customers in your store.
Completed operations entail coverage for the services you provide such as tile flooring or installing counter tops. General liability is an essential home improvement store insurance you should not be without.
Product Liability Insurance - Product liability should be included in your general liability policy - but be careful - many carriers exclude it by default. It protects you from either legal or medical cost since the products you sell can either cause loss or damage.
For instance, a consumer may purchase paint from your store that contains chemicals that could make a person ill. Even though you didn't manufacture the products, you might be drawn in on a lawsuit by the plaintiff's attorney for medical plus legal costs.
Commercial Auto - If you or your workers use personal vehicles for business operations, consider getting commercial auto insurance. This policy covers property damage, vehicle damage as well as body injury for any person in the car accident. Many home stores offer delivery and thus need commercial vehicle insurance.
Business Property - Business property insurance is imperative since accidents or some events could occur with little or no warning. Calamities such as flood, fire, natural disaster or severe weather conditions cause serious damage to your property.
When this happens, there is nothing you can do rather than wait until the repairs are complete. However, with the business property insurance, you can get help replacing the merchandise destroyed as well as having assistance make the repairs required. Note that flood is different policy not included on commercial property policies.
Cyber Liability Insurance - This home improvement store insurance policy will protect you against cyber crimes such as hackers who steal customer financial information, a person paying for goods with stolen debit cards or getting a virus on your site. All of these crimes plus others are covered by the cyber liability insurance.
Workers Compensation - Your employees are putting themselves at risk with the products you sell such as; box cutters, lifting heavy machines or get injured while stocking shelves. Most states require you have workers comp for any non partner or owner employees.
This policy will assist in paying for medical costs for your workers if they come across work related injury. For example, if an employee is stocking shelves with the gardening supplies and a tool falls on him or her causing a body injury, workers comp pays for all the medical care they need. If they're unable to work, it covers lost wages.
Crime Insurance - Crimes such as vandalism, theft and shoplifting can affect your cost of doing business and income. While you cannot totally prevent them from happening, you can protect your store with the crime insurance coverage.
Commercial crime helps manage the loss exposures and replace merchandise or money that was stolen and/or damaged during the event of a crime.
What Does Home Improvement Store Insurance Cover & Pay For?
Home improvement stores can be sued for a variety of reasons, including but not limited to:
- Slip and fall accidents: Customers may slip and fall on a wet or slippery floor, or on a piece of debris left on the floor. In such cases, the store may be held liable for the injuries sustained by the customer.
- Product liability: Home improvement stores sell a wide range of products, including power tools, building materials, and electrical equipment. If any of these products are defective and cause harm or injury to the customer, the store may be sued for product liability.
- Negligence: Home improvement stores have a duty of care to ensure the safety of their customers. If they fail to fulfill this duty of care and a customer is injured as a result, the store may be held liable for negligence.
- Contract disputes: Home improvement stores often engage in contracts with customers for the sale and installation of home improvement products. If there is a breach of contract, the customer may sue the store for damages.
Insurance can help protect home improvement stores from lawsuits by providing coverage for:
General liability: This type of insurance provides coverage for slip and fall accidents, property damage, and bodily injury claims. If a customer is injured on the store's premises, general liability insurance can help cover the costs of medical expenses, legal fees, and other damages.
Product liability: This type of insurance provides coverage for claims arising from defective products sold by the store. If a customer is injured by a defective product, product liability insurance can help cover the costs of legal fees, settlements, and judgments.
Professional liability: This type of insurance provides coverage for claims arising from professional errors or negligence. If a store employee makes a mistake during the installation of a product, professional liability insurance can help cover the costs of legal fees and settlements.
Contract liability: This type of insurance provides coverage for claims arising from breach of contract. If a customer sues the store for breach of contract, contract liability insurance can help cover the costs of legal fees, settlements, and judgments.
Overall, insurance provides a critical layer of protection for home improvement stores, as it helps cover the costs of legal fees, settlements, and judgments in the event of a lawsuit. Without insurance, home improvement stores could face significant financial losses and damage to their reputation.
Commercial Insurance And Business Industry Classification
- SIC CODE: 5251 Hardware Stores
- NAICS CODE: 444110 Home Centers
- Suggested Workers Compensation Code(s): 8010 Store - Hardware
5251: Hardware Stores
Division G: Retail Trade | Major Group 52: Building Materials, Hardware, Garden Supply, And Mobile Home Dealers | Industry Group 525: Hardware Stores
5251 Hardware Stores: Establishments primarily engaged in the retail sale of a number of basic hardware lines, such as tools, builders'hardware, paint and glass, housewares and household appliances, and cutlery.
- Builders' hardware-retail
- Door locks and lock sets-retail
- Hardware stores-retail
- Tools, power and hand-retail
Improvement Store Insurance - The Bottom Line
To protect your store and ensure that you're always on the safe side, you need to secure adequate coverage by protecting various risks your operation faces daily.
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
- Army Navy Surplus Stores
- Art Dealers
- Art Gallery
- Arts & Crafts Supply Stores
- Bicycle Shop
- Boat Dealers
- Book Store
- Bridal Shop
- Candy Confectionery Store
- Carpet Store
- Cell Phone Stores
- Clothing Store
- Collectibles Memorabilia Store
- Consignment Stores
- Convenience Store
- Cosmetics Store
- Costume Stores
- Dry Cleaning
- Embroidery Services
- Equipment Rental
- Fabric Stores
- Fish Markets
- Flea Markets
- Funeral Home
- Furniture Store
- Gift Store
- Greeting Card Stores
- Hardware Store
- Harness & Saddle Shops
- 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
- Music Store
- Office Supply Store
- Paint & Wallpaper Store
- Pawn Shop
- Pet Store
- Pharmacy Liability
- Plumbing Supplies Fixtures Store
- Poultry Dealers
- Rent To Own Stores
- Scrap Metal Dealers
- Sewing Store
- Shoe Store
- Sporting Goods Store
- Stationary Store
- Thrift Store
- Ticket Agency
- Tire Store
- Tobacco Store
- Toy Store
- Travel Agency
- Trophy Stores
- Tuxedo And Formal Wear Rental Store
- Vending Machine Operators
- Wig Store
- Women's Clothing Stores
- Specialty Retail Stores
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.