Thrift Store Insurance Policy Information
Thrift Store Insurance While thrift shops have always been a big part of American commerce, the 2008 recession brought them to unprecedented prominence - even hipness. And while the increasing popularity was good news for thrift shops financially, it also meant that these shopping hubs now faced greater risk exposure than ever before.
Even now, thrift stores are finding themselves very busy with more walk-in than average. That is why having thrift store insurance is important.
Thrift store insurance protects your business 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 thrift store insurance questions:
- What Is Thrift Store Insurance?
- How Much Does Thrift Store Insurance Cost?
- Why Do Thrift Stores Need Insurance?
- What Type Of Insurance Do Thrift Stores Need?
- What Does Thrift Store Insurance Cover & Pay For?
What Is 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.
How Much Does Thrift Store Insurance Cost?
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.
Why Do Thrift Stores Need Insurance?
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.
What Type Of Insurance Do Thrift Stores Need?
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.
What Does Thrift Store Insurance Cover & Pay For?
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.
Commercial Insurance And Business Industry Classification
- SIC CODE: 5932 Used Merchandise Storess
- NAICS CODE: 541211 Offices of Certified Public Accountants, 541213 Tax Preparation Services, 541214 Payroll Services, 541219 Other Accounting Services
- Suggested Workers Compensation Code(s): 8017 Store - Retail NOC
Description for 5932: Used Merchandise Stores
Division G: Retail Trade | Major Group 59: Miscellaneous Retail | Industry Group 593: Used Merchandise Stores
5932 Used Merchandise Stores: This industry includes stores primarily engaged in the retail sale of used merchandise, antiques, and secondhand goods, such as clothing and shoes; furniture; books and rare manuscripts; musical instruments; office furniture; phonographs and phonograph records; and store fixtures and equipment. This industry also includes pawnshops.
- Antique stores-retail
- Book stores, secondhand-retail
- Building materials, used-retail
- Clothing stores, secondhand-retail
- Furniture stores, secondhand-retail
- Furniture, antique-retail
- Glassware, antique-retail
- Home furnishing stores, secondhand-retail
- Home furnishings, antique-retail
- Manuscripts, rare-retail
- Musical instrument stores, second-hand-retail
- Objects of art, antique-retail
- Phonograph and phonograph record stores, secondhand-retail
- Shoe stores, secondhand-retail
Thrift Store Insurance - The Bottom Line
Wouldn't it be nice if your thrift shop could be entirely protected from lawsuits by the honorable nature of your work? Sadly, that's just not the world we live in. If you run a thrift store, you could be sued if things don't quite go as planned. Luckily, commercial insurance can help to protect your store, and your own assets, against such sticky situations.
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.