Buy Thrift Store Insurance

Thrift store insurance is a type of liability insurance that is specifically designed to protect thrift stores and their owners against potential financial losses. This type of insurance typically covers losses such as theft, damage, or loss of inventory, as well as liability issues that may arise in the course of operating a thrift store.

This may include legal claims made against the store, such as personal injury claims, or claims related to the sale of faulty or damaged goods. Thrift store insurance may also provide coverage for property damage and loss of income due to business interruption, as well as other types of financial losses that may occur during the operation of a thrift store.

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

When choosing an insurer and optional coverages to add to your thrift store insurance policy, these are a few of the many options you can choose from for insurance needs:

You can't look in a crystal ball and predict the problems your business will encounter. But you can think about the complications that might arise when working with customers, have employees, own commercial property, or drive vehicles. Consider asking the following questions to help you assess the risk and find the best fit thrift store insurance policy:

• What type of used merchandise do you sell? Certain items are riskier (e.g., appliances vs. clothing).
• What is your price point? Expensive items like antique furniture may indicate the need for extra coverage.
• What security measures do you take? Risk mitigation keep your premiums low.

Let's take a look at some of the various coverages available:

General Liability - This helps protect your thrift store from certain lawsuits alleging injuries or property damage that occurred as the result of your operations. For example, if a customer slips and falls and is injured at your store or an employee causes damage to a customer's property, this insurance will help cover the legal fees. It even helps cover certain claims of slander and libel.

Products Liability - usually part of the general liability policy, this type of thrift store insurance coverage is especially important. You are in the business of selling used products and if one is faulty or causes injury, you will need protection in your commercial business insurance policy. This will cover expenses for medical care or damages caused by one of your products.

Commercial Auto - Does your thrift store use vehicles to pick-up donated goods? If so, you need a business auto policy that protects the vehicle and others driving on the road. A normal personal insurance policy does usually does not cover a vehicle used for business use.

Stock Insurance - This coverage is straight forward, you are covering the value that you have in stock at the premises - this is the purchase cost, it doesn't include your margin, as nice as it would be insurers won't pay your profits on stock. Thrift store insurance policies usually automatically have a provision for seasonal increase; this is usually for Christmas, Easter and other times of the year where your stock will be increased and therefore have a higher value.

Equipment Breakdown - This thrift store insurance protects against breakdowns caused by power surges, motor burnout and operator error. Equipment breakdown insurance covers all sorts of equipment - mechanical and electrical equipment, computers and communication equipment, air conditioning, etc. This coverage pays for the cost to repair or replace the damaged equipment and the costs for time and labor to repair or replace the equipment.

Commercial Property - Let's say that one night your circuit breaker malfunctions and starts an electrical fire. The fire spreads throughout your location burning your possessions and the building. If you have business property insurance then the rebuilding for these damages are covered. Property insurance will typically cover not only the cost to replace your damaged content but also the cost to clean the debris from the location.

Thrift stores present slightly more complex property insurance coverage needs. This is because the merchandise in the store is owned by someone else, but is in your care, custody and control. The property insurance portion of your business insurance policy will provide coverage for your cash registers, shelving and other store-owned property, but to get coverage for the merchandise itself, you may need to purchase Bailee insurance.

Business Income - Disasters, both natural and man-made, can force your business to close its doors for an extended period of time while repairs are made. Business income insurance provides your thrift store with a continuation of income until normal business operations can recommence. This coverage is typically limited to one year.

Workers' Compensation - In most states, workers comp insurance is a requirement when operating a business with any non owner employees. Ca workers comp pays for injuries and illnesses that are work-related. Assume an employee was carrying a heavy box of shoes into your store. The employee slips and drops the box on his or her foot and the foot breaks. Not only does worker's compensation insurance cover the medical costs; it also includes the costs of lost wages.

Business Crime - One of the biggest risks when owning a thrift shop is the risk of crimes, whether committed by passersby, customer, or employees. These crimes include theft of the expensive items in your store. To protect your business from theft, shoplifting, or vandalism, you need crime insurance. So if a visitor to your shop steals an item, the loss you incur will be covered by the policy.

Thrift stores can face various legal challenges that may result in lawsuits. Here are some common reasons thrift stores are sued and how insurance can protect them:

Personal Injury Claims: Thrift stores may be held responsible for injuries caused by slip and fall accidents, falling objects, or other hazards in the store. A customer may sue the store for medical expenses, lost wages, and other damages resulting from their injury.
Insurance protection: Commercial general liability insurance can help cover the cost of defending against personal injury claims and paying for damages if the thrift store is found liable.

Product Liability Claims: Thrift stores sell used items, which can sometimes be defective or dangerous. Customers may file a product liability claim if they are injured by a faulty product purchased from the thrift store.
Insurance protection: Product liability insurance can protect thrift stores against claims arising from defective products sold in their stores.

Employment Claims: Thrift stores can face lawsuits from employees for various reasons, including discrimination, harassment, wrongful termination, and wage and hour violations.
Insurance protection: Employment practices liability insurance can help cover the cost of defending against employment-related lawsuits and paying for damages or settlements.

Property Damage Claims: Thrift stores can be held responsible for damage to the property of others. For example, a thrift store may be sued for damage caused by a vehicle driven by an employee or for damage caused by a fire that started in the store.
Insurance protection: Commercial property insurance can help pay for damage to the thrift store's property, while commercial auto insurance can help pay for damage caused by the store's vehicles.

Overall, thrift stores can protect themselves from legal challenges by obtaining various types of insurance coverage, such as commercial general liability, product liability, employment practices liability, commercial property, and commercial auto insurance. These insurance policies can help pay for legal defense costs, settlements, or judgments resulting from lawsuits, thereby reducing the financial impact on the thrift store.