South Dakota Bicycle Shop Insurance Policy Information
South Dakota Bicycle Shop Insurance. Bicycle shops assemble and sell bicycles without motors. Related items such as clothing, shoes, helmets, safety equipment, novelties, and other biking gear may also be offered to customers. Some stores will offer rentals, repair services and delivery. Some sponsor competitions, excursions, events, or tours.
The most likely risks a cycling store faces include injuries to a customer taking a test ride on a bicycle, as well as damage to your property or inventory from situations like natural catastrophes, theft or severe weather patterns. Getting South Dakota bicycle shop insurance will safeguard your business against these and other risks you face on a daily basis.
South Dakota bicycle shop insurance protects your cycling store from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
Types Of Bicycle Shop Insurance
To protect their business, a bicycle store should be covered by the following South Dakota bicycle shop insurance policies:
Commercial General Liability: General liability insurance protects your cycling store from another person's claims of bodily injury, medical costs and property damage. An example would be a customer got injured while taking a test ride (the retailer should make sure they have a properly drafted Release of Liability and rental/test ride agreement), or a customers brakes failed after you did a tune up. General liability also protects you against 'slip and fall' type claims.
Product Liability: As a bike store owner, as the seller - you can held liable for placing a defective product into the hands of a consumer. If you have responsibility for a product defect that causes injury, you can be sued along with manufacturer.
Business Property Insurance: This will protect your SD bike store from damage to your bikes, accessories, fixtures, inventory and more from destruction which can be caused by storms, theft or severe weather. This coverage option is going to protect your business from such costs you would otherwise be paying out of pocket to repair or replace.
Commercial Crime: Crime insurance covers you bike store's money, securities and other property against a variety of criminal acts, such as employee theft, robbery, forgery, extortion and computer fraud. This South Dakota bicycle shop insurance is very important if you are in a high crime zip code.
SD Commercial Auto: If you use vehicles for your business to pick up or deliver, commercial auto insurance is an important coverage. If you or an employee is sued following a serious accident in a car or truck you own, liability insurance helps pays for the injuries or damages.
Business Owners Policy: A business owner's policy, or BOP, combines business property and general liability insurance and business income in one policy. A BOP bundles these and other useful coverage for small business into one affordable South Dakota bicycle shop insurance policy.
Workers' Compensation: Workers comp is required in most states for any non-owner or partner employees. Employees can get hurt on the job. If they do, SD workers comp will protect you, and pay for medical bills, lost wages, time off, and even pending lawsuits if a former or disgruntled employee tries to make false claims about an injury. This is extremely beneficial if an employee has to miss time off work due to an injury, as this optional coverage will pay their wages while they aren't able to work in the store.
Commercial Umbrella - Also called excess liability coverage when added to your South Dakota bicycle shop insurance policy. This is for the bike store owner who wants a higher level of protection. If lawsuits take place, if you have to go to court, if there is major damage or injuries which occur in your shop - this policy will cover any costs which exceed the level of coverage you purchased with your liability protection.
Cyber Liability - This South Dakota bicycle shop insurance policy covers your liability for a data breach where your customers' personal information, such as Social Security or credit card numbers, is exposed or stolen by a hacker or other criminal.
South Dakota Bicycle Shop's Risks & Exposures
Premises liability exposure comes from slips and falls due to public access to the premises. Bicycles are unstable and can easily overturn when hit. Supervision of customers as they "try out" the bicycles is important to prevent falls. Floor coverings should be in good condition, with 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 equipment is rented, it must be reconditioned before it is rented again. If vendors provide services, the store should require certificates of insurance verifying appropriate limits of liability.
Any exposure to competitions, excursions, tours, or events, particularly sponsorship of events held outside the United States, needs careful evaluation as the shop can incur substantial liability from off-premises operations.
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, especially if there is a "test area" for customers to use. If the business is open after dark, there should be adequate lighting and appropriate security for the area.
Personal injury exposure can come from apprehending and detaining shoplifters. Shoplifting procedures must be fully understood and utilized by all employees.
Products liability exposure is normally high since the shop provides assembly and repair of bicycles. Compliance with all manufacturers' instructions is critical. Direct importing and customizing will increase exposure to that 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. The assembly, repair and customization may introduce metalworking that will require eye protection. If employees participate in activities such as competitions or excursions off premises, proper training and use of safety equipment is critical to prevent injury.
Property exposures are due to flammables such as lubricants, oils, degreasers, and solvents used in assembly and repair operations. They must be properly stored, separated, and controlled. Theft can be a concern due to the street market and high value of bicycles. These thefts are often from younger criminals who may vandalize the premises during a burglary. 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 or other off-premises events, 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.
Business auto exposure can be high if delivery services are provided. Anyone who uses a vehicle must have a valid license and acceptable MVR. Vehicles should have regular maintenance with records kept. If there is no delivery service, the exposure will be limited to hired and nonownership liability for employees running errands.
SD Bicycle Shop Insurance
As a bike shop owner, you need to consider all policy options when choosing an insurance provider for your South Dakota bicycle shop insurance policy.
South Dakota Economic Data, Regulations And Limits On Commercial Insurance
When thinking about opening a business, there are a lot of factors that need to be taken into consideration. Of these factors, location is one of the most crucial. In order for your business to thrive, the area where you set up shop must offer a favorable economy and a market that will benefit from the products and/or services you provide.
Assessing the unemployment rate and the top industries that are thriving in a particular state can help you determine if a particular location will be beneficial for your venture. Additionally, it's important to have an understanding of the types of commercial insurance policies you'll need to carry to protect yourself and others you interact with, as well as to ensure you are complaint with the law.
If you're thinking about starting a business in South Dakota, read on for an overview of the economic trends and commercial insurance requirements in the Mount Rushmore State.
Economic Trends For Business Owners In South Dakota
According to the Bureau of Labor Statistics, the unemployment rate in South Dakota was 3.2% in December of 2019. While this is marginally higher than the 2.9% of July, 2019, it is still .03% lower than the national average, which was 3.5% in the last month of the year.
The low unemployment rate indicates that the state offers healthy conditions for prospective business owners who are considering establishing a company in the Mount Rushmore State.
There are several areas within the state that are seeing a spike in business development, including large metropolitan areas, as well as some smaller cities and suburban regions. The best places to open a business in South Dakota include:
- Rapid City
- Sioux Falls
Compared to the large, open expanses that South Dakota is famous for, the above-mentioned areas are easily accessible and more densely populated; hence why they're ideal for business endeavors.
There are several industries that are seeing significant gains in SD. Some of the largest industries include:
- Agriculture, fishing, and forestry
- Casino gaming
- Hospitality and tourism
- Services and labor
Commercial Insurance Requirements In South Dakota
The South Dakota Division of Insurance regulates insurance in SD. South Dakota mandates very few forms of insurance coverage by law. They enforce worker's compensation.
South Dakota requires you to have worker's compensation insurance if you hire even one employee on a regular basis. This includes part-time employees, family members, minors, and immigrant employees. It is not required for independent contractors or domestic employees, though you should check to make sure any contractors you have are true contractors, and not employees.
South Dakota also requires all business-owned vehicles to be covered by commercial auto insurance. Other types of business insurance that business owners should carry depend on the specific industry.
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
- Appliance & Electronics Store
- Art Gallery
- Bicycle Shop
- Book Store
- Bridal Shop
- Candy Confectionery Store
- Carpet Store
- Clothing Store
- Collectibles Memorabilia Store
- Convenience Store
- Cosmetics Store
- Dry Cleaning
- Equipment Rental
- Funeral Home
- Furniture Store
- Gift Store
- Hardware Store
- Home Improvement Store
- Hotel Motel
- Ice Cream Shop
- Jewelry Store
- Lingerie Store
- Luggage Store
- Music Store
- Office Supply Store
- Paint & Wallpaper Store
- Pet Store
- Pharmacy Liability
- Plumbing Supplies Fixtures Store
- Scrap Metal Dealers
- Sewing Store
- Shoe Store
- Sporting Goods Store
- Stationary Store
- Thrift Store
- Ticket Agency
- Tobacco Store
- Toy Store
- Travel Agency
- Wig Store
Retail stores are susceptible to premises liability claims because of customer traffic, but large department and specialty stores are more susceptible than most.
All retail stores have significant property exposures. The on-hand stock represents a considerable investment, but the amount on hand fluctuates seasonally. For this reason, physical damage insurance on this property must be arranged carefully. When the insured occupies a non-owned building, insurance coverage must be arranged for the insured's interest in extensive improvements and betterments made to the premises.
Crime insurance, in the form of employee theft and money and securities coverage, is also very important.
The businessowners policy was designed with retail exposures and operations in mind. For this reason alone, it should always be the first type of package coverage to consider. However, for those risks not eligible for the business owners policy program, the commercial package policy (CPP) is a practical and convenient way to combine a number of coverages into one policy.
Retail businesses generate income through interaction with customers. This interaction is also how a customer can sustain an injury and then sue the retailer for damages. Hazards, exposures and operations both on premises and off are important and must be covered, but liability the retailer may incur because of the merchandise sold must also be considered and insurance protection arranged.
Inventory or stock is the major property exposure for most retail operations. Because stock values tend to fluctuate or have significant peaks at certain times of the year, value reporting or peak season valuation options should be considered. Business income coverage, including business income from dependent properties coverage, may mean the difference between a retail operation staying in business or being forced into bankruptcy following a loss.
When the insured occupies a non-owned building, insurance coverage must be arranged for the insured’s interest in extensive improvements and betterments made to the premises.
Most retail businesses offer endless opportunities for a variety of criminal activities. For this reason, the coverages needed must be carefully evaluated. Holdup and robbery losses may be the most obvious concerns but employee theft, fraud and counterfeit money losses are also serious issues that cannot be dismissed.
Retail businesses are gaining greater exposure to international issues because of the growth in sales via the internet. As these sales increase, the added exposures faced by these retailers must be evaluated. While their operating horizons are expanding so are their potential loss exposures.
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.
Request a free South Dakota Bicycle Shop insurance quote in Aberdeen, Antelope, Arlington, Ashland Heights and Alcester, Aurora, Baltic, Belle Fourche, Beresford, Blackhawk, Box Elder, Brandon, Britton, Brookings, Canton, Centerville, Chamberlain, Clark, Clear Lake, Colonial Pine Hills, Crooks, Custer, Dakota Dunes, De Smet, Deadwood, Dell Rapids, Eagle Butte, Elk Point, Eureka, Flandreau, Fort Pierre, Fort Thompson, Freeman, Garretson, Gettysburg, Goodwill, Green Valley, Gregory, Groton, Harrisburg, Hartford, Hill City, Hot Springs, Howard, Huron, Ipswich, Kyle, Lake Andes, Lake Madison, Lead, Lemmon, Lennox, Madison, Manderson-White Horse Creek and Philip, Marion, Martin, Milbank, Miller, Mission, Mitchell, Mobridge, North Eagle Butte, North Sioux City, North Spearfish, Oglala, Parker, Parkston, Parmelee, Piedmont, Pierre, Pine Ridge, Platte, Porcupine, Rapid City, Rapid Valley, Redfield, Rosebud, Salem, Scotland, Shindler, Sioux Falls, Sisseton, Spearfish, Springfield, Sturgis, Summerset, Tea, Tyndall, Vermillion, Viborg, Volga, Wagner, Wall, Wanblee, Watertown, Webster, Wessington Springs, Whitewood, Winner, Worthing, Yankton and all other cities near me in SD - The Mount Rushmore State.
Also learn about South Dakota small business insurance requirements for general liability, business property, commercial auto & workers compensation including SD business insurance costs. Call us (605) 205-5099.