Specialty Retail Stores Insurance

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The Specialty Retail Stores Insurance Guide

Retail Stores Insurance

Retail Stores Insurance. This guide provides information on excess, surplus and specialty lines small business insurance policies and risks.

Here you can find basic descriptions of the specific industry risks or specialty coverage types available for Retail Stores Insurance.

For certain types of small businesses, particularly new ones - it is often very hard to know what types of commercial insurance is needed, what the risks are that should be covered - and where to find coverage.

We wanted to provide reference for specialty commercial insurance to help our readers get a better understanding of Retail Stores Insurance policies they might need to do business.

Learn about Specialty Retail Stores Insurance to better understand common risks, exposures and the types of commercial insurance coverage available to protect your small business and it's operations.

Retail Stores Insurance Types

Click on the links below to learn more about Specialty Retail Stores Insurance types and coverages:



What Type Of Insurance Do Adult Book Stores Need?

Adult book stores are difficult risks to place because of the nature of their operations and the merchandise carried. They sell a wide variety of X-rated books, magazines, movies, videos, sex objects and devices. Most are located in run-down, inner-city areas or near highways, far from suburban shopping malls. Stores are usually congested, dark, have poor housekeeping, and cater to an unsavory clientele. The burglary and theft exposure is greater than for most retail classes. Rates are usually surcharged.


What Type Of Insurance Do Auction Houses Need?

Auction houses are considered nonstandard fire risks due to factors such as poor water supply, distance from a public or volunteer fire department, poor housekeeping, and often below-average building construction. Establishing appropriate insurance to value on consigned personal property for which an auction house may be legally liable is often difficult and limits the number of markets available to provide appropriate personal property coverage.


What Type Of Insurance Do Bicycle Dealers Need?

Bicycle dealers require coverage for their property and liability exposures. Major property coverages needed include direct damage, theft, business income, and extra expense. Transit and automobile coverages are important if the dealer delivers. Other liability exposures may include bicycle rental, service, and repair. Products coverage similar to that provided to a manufacturer may be required if the dealer imports bicycles directly from foreign manufacturers.


What Type Of Insurance Do Bicycle Manufacturers Need?

Bicycle and bicycle parts manufacturers have significant product liability exposures which most standard markets will not write. In addition, bicycle wholesale and retail operations that import bicycles directly from foreign manufacturers are usually underwritten as manufacturers when that foreign manufacturer does not have a U.S. insurance policy.


What Is Commercial Credit Insurance?

Commercial credit insurance covers the insured's loss when a credit customer becomes insolvent or refuses to pay its account. Manufacturers, wholesalers, distributors, and certain service businesses are eligible. Retail operations are not eligible.


What Type Of Insurance Do Convenience Stores Need?

Convenience stores are usually a combination of a grocery store, variety store, and gas station. Many standard markets provide property and general liability coverages. Liquor liability, underground storage tank (UST) liability, crime, and workers compensation coverages may only be available in a specialty market.


What Type Of Insurance Do Farmers Markets Need?

Farmers markets are open-air markets where farmers and others display and sell their goods. While the primary draw is the fresh produce, vendors may sell baked goods, fresh fish and meat, prepared items, and crafts. Food concessionaires may also sell various types of restaurant food and drinks. The local market committee and local regulations determine the type of vendors that are permitted.


What Type Of Insurance Do Food Street Vendors Need?

Cities, towns, and municipalities license food vendors to sell food from mobile units on sidewalks or along streets and roads. These vendors sell a wide variety of food, including hot dogs, tacos, egg rolls, various ethnic sausages, and other ready-to-eat foods. Insurance packages are tailored to the vendor's needs and usually cover property, inventory, supplies, general and products liability, and auto liability.


What Type Of Insurance Do Furriers Need?

Furriers require two types of coverage on furs. One is traditionally referred to as furriers' block and covers the retailer, wholesaler, or manufacturer's owned stock of furs. The other is usually referred to as the furrier's customer's policy. It covers customers' furs while in the insured's custody. Programs are available that offer both coverages under a single policy. Coverage is written subject to specific limits for on-premises, off-premises, transit, and per-customer item and is usually subject to significant deductibles.


What Is An Installment Sales Floater?

Retail stores that sell merchandise on time payments or on deferred payment plans have an insurable interest in the merchandise until the customer makes the last payment. If such merchandise is damaged and the customer stops making payments the store sustains a loss. Installment sales coverage indemnifies the store for the unpaid or outstanding balance owed on the merchandise that was damaged. Coverage may be written on a single-interest basis to cover only the store's interest or on a dual-interest form that covers the interests of both the store and the customer. This coverage is used less frequently than in the past because many retail stores no longer offer in-store financing.


What Is Jewelers Block Insurance?

Jewelers block coverage is not limited to only retail jewelers. Any risk that has jewels, jewelry, or precious metals in its inventory needs this coverage because standard commercial property policies significantly limit theft coverage on such property. Every market for this coverage requires detailed applications, known as proposals that become part of the policy. Security systems with maintenance agreements are required and a warranty on the policy requires that both remain in proper operating service throughout the policy's term.


What Type Of Insurance Do Medical Marijuana Dispensaries Need?

A number of states have approved the use of physician prescribed medical marijuana. These dispensaries attempt to fill those prescriptions. They have exposures similar to pharmacies or liquor stores because the commodity they sell is both very attractive and controlled by a government authority. The product exposure is more difficult because there are no Food and Drug Administration (FDA) guidelines that address the drug. Employee dishonesty and theft exposures are significant because all sales must be conducted with cash. Products, particularly from edibles, and/or professional exposures are also concerns.


What Type Of Insurance Do Nutriceuticals Businesses Need?

Health foods are becoming increasingly popular as the nation grows more concerned about potential problems with foods grown using a variety of pesticides, herbicides, and other chemical compounds. In addition, foods preserved with chemicals are thought to be (or may be) linked to cancer. Property and casualty insurance programs, including important products liability coverage with high limits, are available to manufacturers, distributors, wholesalers, and retailers involved with a wide range of health products, including natural foods, organic foods, food supplements, and personal care products.


What Type Of Insurance Do Pawnshops Need?

Pawnshops provide secured loans for their clients. When the client does not satisfy the secured loan, the collateral becomes the property of the pawnshop, which then sells the items. Many pawnshops also purchase used property from customers and sell it in the store. Property coverage available is on an "all risks" basis, including the transit exposure. Theft coverage is the primary exposure and may apply at bank vaults or in transit from the store premises to the vault. Most shops have significant amounts of gold, silver, platinum, diamonds, and other precious gemstones and metals which require using jewelers' block proposal and coverage forms. Property of others is a significant exposure for items pawned that must be kept secure until the owner reclaims them.


What Is Political Risk Insurance?

Political turmoil throughout the world makes United States investors and business firms aware of the threat that their assets in foreign nations where they do business may be expropriated. A firm may be exposed to loss from any of three broad categories of political risk: seizure of assets, currency inconvertibility, and interference with contractual performance. Confiscation, expropriation, nationalization, deprivation and, in some cases, terrorist and war risk coverages may be written under political risk insurance programs.


What Type Of Insurance Do Retail Fireworks Sales Operations Need?

Fireworks sales occur year-round, not just the period around the Fourth of July. Some outlets are year-round retail operations that expand into temporary kiosks or tents prior to the Fourth of July holidays. Others operate only during the weeks leading up to the Fourth. All lines of business are considered hazardous.


What Type Of Insurance Do Sales Redemption Campaigns Need?

This insurance coverage may be arranged for businesses that conduct sales redemption campaigns as part of their marketing and sales promotion activities. Such campaigns may exceed projected goals or fail to reach desired results and this insurance eventually responds to either. The business may sustain a significant loss if more than the projected number of coupons is redeemed. This coverage is available for promotions such as collect-and-win games, collect proofs of purchase and receive a free gift, or money-off coupons. Under-redemption occurs when fewer buyers than projected take advantage of an offer, such as when a fast food restaurant offers giveaway items that accompany children's meals. If the promotion achieves lower than expected sales, the restaurant is left with an overabundance of these giveaways.


What Type Of Insurance Do Shopping Centers Need?

Malls: Shopping centers may qualify as a specialty insurance risk if the property limits are extremely high. High concentrations of building and contents values, extremely large undivided floor areas, windowless buildings, exposures from hazardous occupancies, and exterior exposures are some property-related considerations that must be weighed and evaluated. Shopping malls may include supermarkets, restaurants, bowling centers, and motion picture theaters that must be underwritten carefully. Public liability exposures related to crowd control inside the building and parking lot incidents outside the building are significant.

Strip Malls: A strip shopping center may have only one tenant or may have multiple tenants, but all tenants areas are entered from the parking lot or sidewalk. There is no common interior area that is the shopping center owner's responsibility. Some strip shopping center owners own multiple centers, which usually makes the overall property schedule more attractive due to the spread of risk. Parking lot exposures and vacancy are the two most difficult issues to address.


What Type Of Insurance Do Supermarkets Need?

Supermarkets are retail grocery stores that have more than 5,000 square feet of floor area. They have large open areas without fire cut-offs and extremely combustible or highly damageable contents with blank wall construction. This makes it difficult to fight fires from outside the building except from the front. There are extensive electrical requirements that place extreme demands on the electrical wiring. Another hazard in most supermarkets is large amounts of trash and waste materials that accumulate. Liability hazards are less serious than fire hazards but issues such as congested aisles, overstacked displays or shelves, poor lighting, and the physical condition of parking areas and sidewalks are present. The products liability hazards of foreign objects in prepared foods and spoilage of food in dairy and refrigerated areas must be considered.


What Type Of Insurance Do Video Rental Stores Need?

The major exposures for these operations are theft and damage to expensive equipment such as DVD players, video game systems, computers, and televisions. Insurers use deductibles to avoid numerous small claims from customers failing to return rented items. These programs include property and liability coverages as well as loss of business income and employee dishonesty coverages.


Retail Stores Insurance - The Bottom Line

We hope that the Retail Stores Insurance helps you to better understand the some of the specialty small business commercial insurance policies available for your business. To find out what types of coverage your unique business needs, speak to a professional commercial broker with experience in insuring businesses like yours.

Specialty Small Business Insurance Guide By Industry, Risk Or Policy Type



Types Of Small Business Insurance - Requirements & Regulations

Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.

Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.

Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.

Small Business Information

Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.

Small Business Insurance Information

In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.

The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.

Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.

According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.

Types Of Small Business Insurance

Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:

  • What type of business am I running?
  • What are common risks associated with this industry?
  • Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
  • Does my state require me to carry this type of insurance?
  • Does my lender or do any of my investors require me to carry this type of policy?

A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:

Business Insurance Policy Type What Is Covered?
General Liability InsuranceWhat is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.
Workers Compensation InsuranceWhat is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.
Product Liability InsuranceWhat is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.
Commercial Property InsuranceWhat is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.
Business Owners Policy (BOP)What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.
Commercial Auto InsuranceWhat is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.
Commercial Umbrella PoliciesWhat is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.
Liquor Liability InsuranceWhat is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.
Professional Liability (Errors & Omissions)What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.
Surety BondWhat is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).


Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.

Business Insurance Required by Law
Small Business Commercial Insurance

If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.

Your insurance agent can help you check applicable state laws so you can bring your business into compliance.

Other Types Of Small Business Insurance

There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:

  • Business Interruption Insurance
  • Commercial Flood Insurance
  • Contractor's Insurance
  • Cyber Liability
  • Data Breach
  • Directors and Officers
  • Employment Practices Liability
  • Environmental or Pollution Liability
  • Management Liability
  • Sexual Misconduct Liability

Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.

Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.

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