Women's Clothing Store Insurance Policy Information
Women's Clothing Store Insurance. Women's apparel stores work within an industry that plays a crucial part in the global economy. Within the United States alone, this industry is valued at an impressive US$295 billion, and the women's wear market is only projected to grow.
Women's apparel stores can sell a variety of new and used clothing and accessories for women. Some specialize in a particular type of clothing, such as athletic wear, coats, formals, hats, hosiery, lingerie, suits, or wedding dresses.
The shop 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 offered to customers. Some may offer delivery services.
Not only is women's apparel an extremely lucrative business; owning a women's apparel store also provides a stable income stream.
That does not mean, however, that you have nothing to worry about if you own and operate a women's apparel store - or are currently considering whether you can start such a business. Women's apparel stores can be confronted by a wide variety of ruinous events.
Although shop owners can take steps to mitigate some of these risks, nothing you can do guarantees that your store will not face unforeseen circumstances. What types of women's clothing store insurance coverage are required? Read on to discover more.
Women's clothing store insurance protects your female apparel shop 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 women's apparel shop insurance questions:
- What Is Women's Clothing Store Insurance?
- How Much Does Women's Clothing Store Insurance Cost?
- Why Do Women's Clothing Stores Need Insurance?
- What Type Of Insurance Do Women's Clothing Stores Need?
- What Does Women's Clothing Store Insurance Cover & Pay For?
What Is Women's Clothing Store Insurance?
Women's Clothing Store Insurance is a type of insurance coverage that protects a business that specializes in selling women's clothing and accessories. This type of insurance protects the business against financial losses due to unforeseen events such as theft, fire, liability claims, natural disasters, or other unforeseen circumstances.
The coverage may include protection for the physical property, inventory, and equipment, as well as liability coverage for accidents that may occur on the premises. The insurance policy may also cover loss of income and business interruption due to an event that disrupts the operation of the store.
How Much Does Women's Clothing Store Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small women's clothing stores ranges from $27 to $49 per month based on location, size, revenue, claims history and more.
Why Do Women's Clothing Stores Need Insurance?
Not only are women's apparel stores legally required to carry certain types of insurance, they also face significant hazards. Some of these risks are universal in nature, while others are specific to your branch of commerce.
Your store may be impacted by an act of nature, such as a tornado, lightning strike, or earthquake. It may fall victim to vandalism or theft, and accidents, too, are always a potential risk.
In all these cases, the damage to your building, the lost inventory, and the business interruption you will face in the aftermath, can be financially devastating.
Important equipment may suddenly break down and need to be repaired or replaced. An employee, customer, vendor, or other third party may sustain injuries on your premises. A customer who alleges that a product you sold them caused them harm may file a lawsuit, or a large order you placed may be lost in transit.
The list of possible perils is almost endless. Fortunately, with top-quality insurance, women's apparel stores will not have to face the costs alone as their insurer will cover a significant portion of your losses. This makes it possible for women's wear stores to recover from the financial consequences of even the most severe perils.
In addition, certain types of women's clothing store insurance are legally mandated, and failing to meet your jurisdiction's requirements could lead to heavy fines.
What Type Of Insurance Do Women's Clothing Stores Need?
The precise nature of your insurance needs will depend on the individual circumstances of your women's apparel store.
The jurisdiction within which your store is located, the size of the store, your number of employees, and the value of your equipment (such as cash registers, security systems, and HVAC units) will all influence what types of coverage you should acquire.
For this reason, it is crucial to talk to a commercial insurance broker, who can help you craft the best women's clothing store insurance plan for your needs. With that in mind, the following types of insurance are invaluable:
- Commercial Property: Should your women's apparel store be impacted by perils like natural disasters, theft, vandalism, and serious accidents like fires or burst pipes, this form of insurance will cover your repair and replacement costs up to a predefined limit.
- General Liability: Even with health and safety as one of your top priorities, a customer or other third party could be injured within your store. Your store's activities may also lead to accidental damage of third party property. In the event this happens, commercial general liability insurance covers your legal costs, as well as medical bills or repair expenses for the affected third party.
- Product Liability: This form of women's clothing store insurance relates to the products you sell. If a product were to cause harm to a third party, or if a line of clothing has to be recalled for whatever reason, you will not be saddled with unexpected expenses if you have quality product liability coverage.
- Inland Marine: This type of insurance protects you from costs relating to loss of your goods while they are in transit.
- Workers' Compensation: If an employee were to suffer a work-related injury, this type of coverage pays for their medical costs as well as any lost wages.
Because apparel stores may, depending on their individual risk profile, have additional women's clothing store insurance needs, it is essential to consult a commercial insurance broker.
Women'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 moderate. While backup facilities are readily available, sales can be seasonal with replacement stock difficult to obtain quickly for peak times such as prom season or Christmas.
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 Women's Clothing Store Insurance Cover & Pay For?
There are several reasons why women's clothing stores can face lawsuits, including:
Discrimination: If a customer or employee believes they were discriminated against based on their gender, they may sue the store for damages. If the store is sued for discrimination, their Employment Practices Liability Insurance (EPLI) can help cover the cost of legal fees, settlements, and judgments. This insurance typically covers claims related to discrimination, harassment, and wrongful termination.
Personal Injury: If a customer is injured while shopping at the store, they may sue for medical expenses, lost wages, and pain and suffering. If a customer is injured while shopping at the store, the store's General Liability Insurance can help cover the cost of medical expenses, lost wages, and pain and suffering. This insurance also covers property damage and other bodily injury claims.
Intellectual Property Infringement: If the store uses someone else's trademark or copyrighted material without permission, they may face a lawsuit for damages. If the store is sued for using someone else's trademark or copyrighted material without permission, their Intellectual Property Insurance can help cover the cost of legal fees, settlements, and judgments. This insurance typically covers claims related to copyright infringement, trademark infringement, and trade secret misappropriation.
False Advertising: If the store misrepresents its products or services in advertising or marketing materials, they may face a lawsuit from customers who were misled. If the store is sued for false advertising, their Advertising Injury Insurance can help cover the cost of legal fees, settlements, and judgments. This insurance typically covers claims related to false or misleading advertising, defamation, and copyright infringement.
Employment Disputes: If an employee believes they were wrongfully terminated, discriminated against, or harassed in the workplace, they may sue the store for damages. If an employee sues the store for wrongful termination, discrimination, or harassment, their EPLI can help cover the cost of legal fees, settlements, and judgments. This insurance typically covers claims related to discrimination, harassment, and wrongful termination.
Overall, insurance can provide important protection for women's clothing stores facing lawsuits by helping to cover legal fees, settlements, and judgments, which can be a significant financial burden for small businesses.
Commercial Insurance And Business Industry Classification
- SIC CODE: 5621 Women's Clothing Stores, 5632 Women's Accessory and Specialty Stores
- NAICS CODE: 448120 Women's Clothing Stores, 448150 Clothing Accessories Stores
- Suggested Workers Compensation Code(s): 8008 Store - Clothing, Wearing Apparel, or Dry Goods - Retail
Description for 5621: Women's Clothing Stores
Division G: Retail Trade | Major Group 56: Apparel And Accessory Stores | Industry Group 562: Women's Clothing Stores
5621 Women's Clothing Stores: Establishments primarily engaged in the retail sale of a general line of women's ready-to-wear clothing. This industry also includes establishments primarily engaged in the specialized retail sale of women's coats, suits, and dresses.
- Bridal shops, except custom-retail
- Clothing, ready-to-wear: women's-retail
- Dress shops-retail
- Maternity shops-retail
- Ready-to-wear stores, women's-retail
Description for 5632 Women's Accessory and Specialty Stores
Division G: Retail Trade | Major Group 56: Apparel And Accessory Stores | Industry Group 563: Women's Accessory And Specialty Stores
5632 Women's Accessory and Specialty Stores: Establishments primarily engaged in the retail sale of women's clothing accessories and specialties, such as millinery, blouses, foundation garments, lingerie, hosiery, costume jewelry, gloves, handbags, and furs (including custom made furs).
- Apparel accessory stores, women's-retail
- Blouse stores-retail
- Costume jewelry stores-retail
- Foundation garments-retail
- Fur apparel made to custom order-retail
- Fur shops-retail
- Handbag stores-retail
- Hosiery stores-retail
- Lingerie stores-retail
- Millinery stores-retail
Women's Clothing Store Insurance - The Bottom Line
To protect your shop, employees and customers, having the right women's clothing store insurance coverage is vital. To discover the policy options available to you, how much coverage you should have and the cost - speak to a reputable commercial insurance agent.
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.