Men's Clothing Store Insurance Policy Information
Men's Clothing Store Insurance. The global men's apparel market is worth over US$483 billion, and this industry is valued at more than US $114 billion in the United States alone.
Although diverse types of retailers sell men's wear, dedicated men's apparel stores play a key part in this market, as a go-to destination for men looking to upgrade and refresh their casual, professional, and sports wardrobes.
Men's apparel stores can sell a variety of new and used clothing and accessories for men. A particular store may specialize in athletic wear, coats, hats, hosiery, suits, or ties.
Often jewelry, shirts, undergarments, wallets and other incidentals are available. The store may be independent or part of a regional or national chain that sells online as well as in stores.
Tailoring or alteration services may be provided. Some may offer delivery services.
As such, there is no question that those who own and manage men's apparel stores find themselves in a profitable branch of industry.
While the men's apparel market is only going to continue to grow, business owners can never be complacent. Men's apparel stores are not just wide open to plenty of opportunity, they also face numerous risks.
To protect your shop from the many perils it is vulnerable to, investing in the right insurance is absolutely necessary. What types of men's clothing store insurance are needed, though? Learn more in this brief guide.
"Men's clothing store insurance protects male apparel shops from lawsuits with rates as low as $27/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked male apparel shops insurance questions:
- What Is Men's Clothing Store Insurance?
- How Much Does Men's Clothing Store Insurance Cost?
- Why Do Men's Clothing Stores Need Insurance?
- What Type Of Insurance Do Men's Clothing Stores Need?
- What Does Men's Clothing Store Insurance Cover & Pay For?
What Is Men's Clothing Store Insurance?
Men's Clothing Store Insurance is a type of insurance policy that provides financial protection to retail businesses that sell clothing and accessories specifically for men.
This insurance covers a variety of potential risks and losses that a men's clothing store may face, including property damage, theft, liability claims, and business interruption. The policy may also cover the cost of damages or losses related to fire, natural disasters, and other unforeseen events.
The coverage and specifics of the policy may vary depending on the type of business and its individual needs, but overall, Men's Clothing Store Insurance helps to secure the financial stability of a men's clothing store and its operations.
How Much Does Men's Clothing Store Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small men's clothing stores ranges from $27 to $49 per month based on location, size, revenue, claims history and more.
Why Do Men's Clothing Stores Need Insurance?
Men's apparel stores need to be insured, in the first place, because they face a multitude of industry-specific and universal risks.
While business owners will always hope that their companies will be able to dodge disaster, the reality is that any day could be one that results in devastating financial losses.
Men's apparel stores will, of course, be all too familiar with everyday risks such as theft and the sudden breakdown of important equipment. They could also be struck by larger-scale perils.
Acts of nature, like earthquakes, wildfires, or hurricanes, are one example. Large-scale theft, including cyber theft pertaining to your online store and employee fraud, are others.
Your business could, likewise, be burdened by lawsuits - anyone from customers or employees who may accidentally be injured on your premises or dissatisfied customers, to claims relating to potential copyright violations (even, for instance, relating to prints on t-shirts you may sell) may file a claim. Litigation is always time-consuming and costly, even if the claim is dismissed.
In addition to the fact that these and other perils would, without a comprehensive insurance plan, have the realistic potential to bankrupt your business, certain types of men's clothing store insurance are also compulsory. Besides, lenders will require proof of insurance before doing business with you.
What Type Of Insurance Do Men's Clothing Stores Need?
Although all men's apparel stores will have broadly similar insurance needs, business owners need to keep in mind that their precise insurance needs are dependent on the factors that make their business unique.
Your shop's location, size, number of employees, the range of goods you sell, and even the vendors you do business with all influence the types of coverage your store should have.
Because of that, men's apparel stores should always consult a competent commercial insurance broker. Meanwhile, these key types of men's clothing store insurance are essential include:
- Commercial Property: This form of insurance defends you from financial losses caused by perils that inflict property damage - like acts of nature, accidents, theft, and vandalism. Your store building is protected alongside many of its contents.
- General Liability: Designed to protect you if your store faces a third party property damage or bodily injury claim, this type of men's clothing store insurance coverage is an indispensable part of your legal defense fund. Attorney fees, court costs, and settlement payments can all be covered.
- Product Liability: Should an item of clothing or an accessory that you have sold later cause injury to a third party, product liability coverage protects you from the financial fallout. In cases of product recall, it also helps you manage the costs.
- Workers' Compensation: When an employee is injured on your premises, you can expect heavy expenses. Workers' compensation insurance pays for such employee's medical bills as well as reimbursing any lost wages while they are recovering.
- Inland Marine: This form of insurance has your ordered goods covered while they in transit. Should an accident lead to the loss of your goods, for instance, the costs are covered by inland marine insurance.
Apparel shops will be protected from the most common risks when they invest in these types of coverage. Owners and managers should, however, be aware that they may also require other kinds of men's clothing store insurance. To find out more, talk to a competent commercial insurance broker.
Men's Clothing Store's Risks & Exposures
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. All goods should be kept on easily reached clothing rods or shelves so customers do not pull items down on themselves. The stock dropped on floors by customers must be retrieved promptly.
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. 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 exposures include allegations of discrimination, invasion of privacy in dressing rooms, and from apprehending and detaining shoplifters, which may result in claims of assault and battery, false arrest or detention, unauthorized or intrusive searches, or wrongful ejection from the premises.
Shoplifting procedures must be fully understood and utilized by all employees.
Products liability exposure is normally low. Direct importing of clothes and tailoring can increase the exposure. Foreign-made items should come from a domestic-based wholesaler. Any direct importer should be considered as a product manufacturer.
Workers compensation exposure is moderate due to employees standing for long hours, the use of computers, and restocking which requires lifting and placing items on clothing rods or on shelves. 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.
If tailoring services are offered, injuries due to sewing and cutting injuries are possible. Cleaning workers can develop respiratory ailments or contact dermatitis from working with chemicals. In any retail business, hold-ups may occur. Employees should be trained to respond in a prescribed manner.
Property exposures are low because ignition sources are limited to electrical wiring and heating and cooling systems. These should be maintained and meet current codes for the occupancy. Should a fire occur the stock and its packaging materials provide a combustible fire load that is highly susceptible to water and smoke damage.
Individual items may be shoplifted. High-value or designer items may be stolen in larger quantities after hours. Appropriate security measures should be in place 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 exposures are generally low as backup facilities are readily available.
Crime exposures are from employee dishonesty and theft of money and securities either 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.
Inland marine exposures are from accounts receivable if the store offers credit, computers to transact sales and monitor inventory, and valuable papers and records for customers', employees', and vendors' information. Backup copies of all records, including computer files, should be made and stored off premises.
If the store alters or repairs items for customers, there will be a bailees exposure. High-end stores may have fine arts such as paintings or sculpture. There may be goods in transit between stores or if the store delivers items.
Business auto exposure is generally limited to hired and non-owned for employees running errands. If the store delivers items to customers, only company vehicles should be used. Drivers must have a valid license and acceptable MVR. Vehicles must be regularly maintained with records kept.
What Does Men's Clothing Store Insurance Cover & Pay For?
Men's clothing stores can face various lawsuits for a variety of reasons. Some of the common reasons why men's clothing stores are sued include:
Slip and Fall Accidents: If a customer slips and falls on the store's premises due to a wet or slippery floor, the store can be held liable for any injuries sustained by the customer. If a customer slips and falls on the store's premises, the store's CGL insurance can cover the costs of any medical bills and legal fees associated with the lawsuit.
Defective Products: If a customer is injured by a product sold by the store, the store can be held liable for any damages caused by the defective product. If a customer is injured by a defective product sold by the store, the store's product liability insurance can cover the costs of any legal fees and settlement costs.
Discrimination: If a customer feels that they have been discriminated against on the basis of their gender, race, religion, or other protected characteristic, they may file a discrimination lawsuit against the store. If a store is sued for discrimination, their employment practices liability insurance (EPLI) can provide coverage for legal expenses and any damages awarded to the plaintiff.
Intellectual Property Infringement: If a store uses copyrighted images or logos without permission, they may be sued for intellectual property infringement. If a store is sued for intellectual property infringement, their CGL insurance can provide coverage for legal expenses and any damages awarded to the plaintiff.
Employment Disputes: Men's clothing stores may also face lawsuits related to employment disputes, such as discrimination, harassment, or wrongful termination. If a store is sued by an employee for wrongful termination, discrimination, or harassment, their EPLI insurance can cover the costs of legal fees and any damages awarded to the plaintiff.
In summary, men's clothing stores can face various types of lawsuits, but purchasing insurance can help protect them against these risks by providing coverage for legal expenses, settlements, and judgments.
Commercial Insurance And Business Industry Classification
- SIC CODE: 5611 Men's and Boys' Clothing and Accessory Stores
- NAICS CODE: 448110 Men's Clothing Stores
- Suggested Workers Compensation Code(s): 8008 Store - Clothing, Wearing Apparel, or Dry Goods - Retail
Description for 5611: Men's and Boys' Clothing Stores
Division G: Retail Trade | Major Group 56: Apparel And Accessory Stores | Industry Group 561: Men's And Boys' Clothing And Accessory Stores
5611 Men's and Boys' Clothing and Accessory Stores: Establishments primarily engaged in the retail sale of men's and boys' ready-to-wear clothing and accessories.
- Apparel accessory stores, men's and boys'-retail
- Clothing stores, men's and boys'-retail
- Haberdashery stores-retail
- Hat stores, men's and boys'-retail
- Men's wearing apparel-retail
- Tie shops-retail
Men's Clothing Store Insurance - The Bottom Line
To protect your shop, employees and the customers, having the right men's clothing store insurance coverage is important. To see the policy options available to you, how much coverage you should invest in and the premiums - speak to a reputable commercial insurance broker.
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.
- 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.