Sporting Goods Store Insurance Policy Information
Sporting Goods Store Insurance Sporting goods store owners can benefit from a specific type of insurance that's designed specifically for their needs.
Athletic goods stores may limit their inventory to sports clothing and shoes, may specialize in a specific sport, such as skiing or hunting, or may offer clothing, equipment and accessories for a wide range of sporting, hunting and fishing activities. Some will offer equipment rentals, repair services, trade-ins and used equipment sales.
Classes may be offered for training in specific sports, such as golf or archery, along with ranges for archery or shooting. The store may arrange excursions such as fishing, scuba, or camping trips. Athletic competitions, exhibitions and special events may be offered or sponsored, both on-site and off-premises.
Commercial general liability insurance policies may not cover all of the needs of a sporting good store, so it's best to investigate available sporting goods store insurance options.
Sporting goods store insurance protects your shop 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 sporting goods store insurance questions:
- What Is Sporting Goods Store Insurance?
- How Much Does Sporting Goods Store Insurance Cost?
- Why Do Sporting Goods Stores Need Insurance?
- What Type Of Insurance Do Sporting Goods Stores Need?
- What Does Sporting Goods Store Insurance Cover & Pay For?
What Is Sporting Goods Store Insurance?
Sporting goods store insurance is a type of insurance coverage specifically designed for businesses that sell sporting equipment, gear, and clothing.
This insurance provides protection against a variety of potential risks and losses faced by sporting goods stores, including liability, property damage, theft, loss of income, and more. The coverage typically includes general liability, property insurance, workers compensation, business interruption, and product liability.
The policy may also include coverage for specific types of sports equipment, such as bicycles or firearms.
How Much Does Sporting Goods Store Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small sporting goods stores ranges from $37 to $59 per month based on location, size, payroll, sales and experience.
Why Do Sporting Goods Stores Need Insurance?
Here are the reasons why Sporting Goods Stores need insurance:
Protection against theft or loss: Sporting goods stores often contain expensive and valuable items, making them vulnerable to theft and loss. Insurance helps protect against these types of losses and covers the cost of replacing stolen or lost items.
Liability coverage: Sporting goods stores are responsible for ensuring the safety of their customers and employees, and liability insurance can help protect against the financial impact of any accidents or injuries that occur on the premises.
Product liability: If a product sold in a sporting goods store causes harm to a customer, the store can be held liable for any resulting damages. Product liability insurance can help cover the costs of any legal expenses or settlements that may arise from such incidents.
Damage to property: Natural disasters, fires, or other unexpected events can cause significant damage to a sporting goods store. Insurance can help cover the costs of repairs or rebuilding.
Overall, sporting goods stores need insurance to protect their business and assets, as well as to ensure they can provide a safe and secure environment for customers and employees.
What Type Of Insurance Do Sporting Goods Stores Need?
Due to the nature of sporting goods, possible risks include employee and customer injuries, damage to property during demonstrations, theft of popular sports clothing or goods, and fire robbing you of your stock and your livelihood - particularly when you're not part of a big chain of stores who can easily rebuild and restock the store and reallocate staff.
Following are some of the most common sporting goods store insurance policies available:
Commercial General Liability - This type of sporting goods store insurance protects the store from liability from third party bodily injury and property damage claims. It will cover things like slip and fall accidents, or customers getting hurt while in the store. It will also protect you from lawsuits that might arise from issues in the store. This type of insurance is flexible and can be adjusted along with the growth of your business. If you add new stores, bring in new services or offer new products, your general liability can expand to meet the new demand
General liability gives you protection against injuries that people sustain in your store and any damage to their personal property. This kind of insurance would cover any medical bills that you had to pay as a result of these problems arising in the sporting goods store. This sporting goods store insurance can also cover things like product liability, where a product accidentally injures someone that has bought it. The General Liability cover is suitable for any lawsuits that might result from the incident.
Business Owners Policy - This type of insurance known as BOP automatically includes the coverage described in the general liability section above. It also helps to protect your other parts of your business too. A BOP is flexible and can be created to suit the needs of your particular store. BOP could include things like:
- The physical building
- The contents of that building
- Any essential electronic data
- Newly built premises
- The fallout of employees' dishonest practices
Consider for instance, how long its taken you to build your email or physical marketing lists. If that data was corrupted or lost, you'd really be in trouble. Protecting electronic data is just one of the types of BOP cover that you could get for your sports store.
Loss of Income Coverage - This type of sporting goods store insurance coverage protects your business income should your operations be suspended due to accidental damage or loss to your businesses premises. It can pay for up to a year to you move back on or relocate.
Physical Indoor or Outdoor Signage - This type of commercial insurance covers the theft or damage to signage that is attached to the exterior or found internally.
Flood Insurance - Flood insurance is not included in other business insurance policies. If your store is in a flood zone, you will need commercial flood insurance to protect your inventory and building if you own it.
Commercial Auto - Sporting goods businesses may have very different needs when it comes to vehicles. If you deliver, and your vehicle was damaged, it could easily cause harm to your livelihood. Equally, business insurance for vehicles could pay for any damage done to people or property in a car accident involving your vehicle.
Workers Compensation - Many states require that you provide worker comp for your employees. If any of your employees becomes injured while working for you, or if they become ill due to something that happened at work, you become responsible for them. workers comp pays for costly medical care bills.
Commercial Umbrella - This type of sporting goods store insurance is designed to go above and beyond your existing liability insurance limits. It is an excess liability policy that gives a higher level of protection should a lawsuit exhausts your underlying policy limits.
Professional Liability Insurance - There are times when negligence or bad advice could leave your store open to a lawsuit. Professional liability provides coverage when a business is found liable for negligence that causes damages or harm.
Athletic Good Store's Risks & Exposures
Premises liability exposure comes from slips and falls due to public access to the premises. All stock should be on sturdy shelves that are easily accessible to customers. Floor coverings should be in good condition, no frayed or worn spots on carpet and no cracks or holes in flooring. Sufficient exits must be provided and be well marked, with backup lighting systems in case of power failure.
If there are archery or shooting ranges on premises, safety equipment should be provided to participants. If firearms or ammunition are sold, the store must adhere to all state or local requirements and scrupulously keep records of transactions. If equipment is rented, it must be reconditioned before it is rented again.
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 premises are open after dark, there should be adequate lighting and appropriate security for the area.
If vendors provide services, the store should require certificates of insurance verifying appropriate limits of liability.
Personal injury exposures are from dressing rooms, which must be well maintained with privacy carefully guarded, and from apprehending and detaining shoplifters. Shoplifting procedures must be fully understood and utilized by all employees.
Products liability exposure is limited unless there is reconditioning, repair or direct importing of foreign-made equipment. In any of these cases the retailer can assume the responsibility of a manufacturer. Foreign-made items should come from a domestic-based wholesaler.
Workers compensation exposure is from lifting which can cause back injury, hernias, sprains, and strains, and 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. Equipment used in repair operations should be appropriately maintained to prevent injury.
In any retail business, hold-ups can occur. Employees should be trained to respond in a prescribed manner. If classes or demonstrations are held or if employees participate in activities in other ways, proper training and use of safety equipment is critical to prevent injury.
Property exposures can be high due to the value and combustibility of stock along with numerous ignition sources. All wiring should be well maintained and meet current codes for the occupancy. Aerosols and plastics add to the fire potential. Any down-filled or fabric items are highly susceptible to damage from water, smoke and fire. Firearms and ammunition should be stored away from flammables and in an area inaccessible to customers. If LPG tanks are sold or exchanged, they should be stored in a locked, secure area outside the building.
Theft is a major concern because of the street market for athletic shoes and other high-value sporting equipment. Appropriate security measures should be present 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 reconciliations. 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, bailees customers if the store accepts customers' items for repair, computers to transact sales and monitor inventory, exhibitions and goods in transit if the store takes goods to trade shows, and valuable papers and records for vendors' and customers' records. Backup copies of all records, including computer records, should be made and stored off premises.
Commercial auto exposure is generally limited to hired and nonwnership liability for employees running errands. Anyone who uses a vehicle must have a valid license and acceptable MVR. Vehicles should have regular maintenance with records kept.
What Does Sporting Goods Store Insurance Cover & Pay For?
Sporting goods stores may be sued for a variety of reasons. Here are some examples:
Product liability: If a customer is injured by a product purchased at a sporting goods store, the store may be held liable. For example, if a customer is injured by a defective treadmill sold at the store, they may sue the store for damages.
Insurance protection: Product liability insurance can help protect the store against claims of injury or damage resulting from a product sold or manufactured by the store.
Premises liability: If a customer is injured on the premises of a sporting goods store, the store may be held liable. For example, if a customer slips and falls on a wet floor in the store, they may sue the store for damages.
Insurance protection: General liability insurance can help protect the store against claims of bodily injury or property damage that occur on the store's premises.
Negligence: If a sporting goods store fails to properly maintain their premises, fails to warn customers of potential hazards, or fails to properly train employees, they may be held liable for any resulting injuries.
Insurance protection: General liability insurance can help protect the store against claims of negligence resulting in bodily injury or property damage.
False advertising: If a sporting goods store makes false or misleading claims about their products, they may be sued for false advertising. For example, if a store claims that a particular supplement will improve athletic performance, but there is no scientific evidence to support this claim, they may be sued for false advertising.
Insurance protection: Advertising injury liability insurance can help protect the store against claims of false advertising.
In all of these cases, insurance can help protect the sporting goods store from financial loss by covering the costs of legal defense, settlements or judgments against them. However, it's important to note that insurance policies can vary, and not all policies cover all types of claims. Therefore, it's important for sporting goods stores to work with their insurance provider to ensure that they have the appropriate coverage for their business.
Commercial Insurance And Business Industry Classification
- SIC CODE: 5941 Sporting Goods Stores and Bicycle Shops
- NAICS CODE: 451110 Sporting Goods Stores
- Suggested Workers Compensation Code(s): 8017 Store - Retail NOC
5941: Sporting Goods Stores and Bicycle Shops
Division G: Retail Trade | Major Group 59: Miscellaneous Retail |Industry Group 594: Miscellaneous Shopping Goods Stores
5941 Sporting Goods Stores and Bicycle Shops: Establishments primarily engaged in the retail sale of sporting goods, sporting equipment, and bicycles, bicycle parts, and accessories. Retail establishments primarily engaged in selling motorized bicycles are classified in Industry 5571, and those engaged in the retail sale of athletic footwear are classified in Industry 5661. Establishments primarily engaged in repairing bicycles are classified in Services, Industry 7699, and those renting bicycles are classified in Industry 7999.
- Backpacking, hiking, and mountaineering equipment-retail
- Bait and tackle shops-retail
- Bicycle and bicycle parts dealer except motorized-retail
- Bowling equipment and supplies-retail
- Camping equipment-retail
- Exercise apparatus-retail
- Fishing equipment-retail
- Golf goods and equipment-retail
- Golf professionals operating -retail stores
- Gymnasium equipment-retail
- Playground equipment-retail
- Pool and billiards table stores-retail
- Riding goods and equipment-retail
- Saddlery stores-retail
- Skiing equipment-retail
- Skin diving and scuba equipment-retail
- Sporting goods stores-retail
- Tennis goods and equipment-retail
Sporting Goods Store Insurance - The Bottom Line
It is important for sporting good shop owners to understand what is covered, what isn't, and what additional or optional sporting goods store insurance policy protections should be considered when choosing a policy.
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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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.