Commercial Insurance for Your Retail Business

Insuring Your Retail Business

It's no secret that as a retailer, you operate in an unpredictable business climate. You're not just running a store; you're maintaining a brand and your hard-earned reputation. Whether your customers come to you for clothing, furniture, or auto parts, they depend on your store for your products and your expertise.

You own your store; you own your brand.  You also own the responsibility for protecting your inventory, property, employees and customers’ payment information.   Make sure you have the protection you need if something goes wrong.

Read on to understand what kind of insurance you may need.

What Insurance Do Retailers Need?

There are over one million retail stores operating in the U.S. today and the types of insurance coverage you will need varies depending upon a number of factors, including what you sell and where your store is located. We can help you with the basics and assist you through any specific coverage so that you can ensure that you get the types of insurance that you need.

Liability Insurance

Covers your business from property damage claims, bodily injury claims, and/or personal and advertising injury claims that could put your business’s assets at risk.  If you sell a product or service, you should have liability, as soon as you begin selling so that you can protect yourself and your business from those risks.

BOP or Business Owner’s Policy

Many carriers bundle together several different insurance policies into one product that allow you to customize your coverage. Typically, a Business Owners Policy will include general liability and property insurance.  Depending on the nature of your retail business, other coverages that may be appropriate to add to your BOP include:

  • Spoilage: If you sell items—such as cut flowers or food—that must be kept under controlled temperature conditions to avoid spoiling or perishing, you can add spoilage coverage for the value of property spoiled as a result of a breakdown of the temperature control system due to conditions beyond your control.
  • Food Contamination: If you sell food, there is a risk that it could cause food poisoning or transmit a communicable disease from an employee of your business. You can cover this risk with a Food Contamination Endorsement.
  • Mechanical Breakdown: This option provides coverage for mechanical or electrical breakdown to your boilers, pressure vessels, refrigeration systems, piping and mechanical and electrical machines, and apparatus that generate, transmit or use mechanical or electrical power.
  • Outdoor Signs: The basic BOP doesn’t cover an outdoor sign not attached to the building, but you can add this coverage as a separate endorsement.

Workers Compensation

Workers compensation insurance covers medical costs and a portion of lost wages for an employee who becomes injured or ill on the job. Workers compensation insurance also protects companies from being sued by employees for workplace conditions that can cause an injury or illness.

For some states, it is required that you obtain a workers compensation plan. If you are an operating business and it is required by your state to have this type of policy, it is important to get one as soon as you have an employee.

If your state does not require this type of insurance coverage, you may still want to consider it so you can protect the business from this type of lawsuit and protect your business reputation.

Commercial Auto Insurance

Commercial Auto Insurance, also known as business auto insurance, helps your business cover the financial costs resulting from an auto accident if you or an employee is found at fault. Commercial auto insurance helps pay for damaged property and medical expenses – even in the event of a fatal accident.

Cyber Liability Insurance

When a data breach occurs, quick action is important to help restore the public’s confidence if you’re a business victimized by a cyber-attack. Cyber liability insurance and data breach insurance help cover costs like notification, identity protection solutions, public relations, legal, liability and more depending on the coverage you choose. 

At, we shop all the major A+ rated insurance companies so you don’t have to, connecting you with the right policy for your small business. Let us help you make an informed decision about your business insurance needs.  Our licensed agents specialize in helping small businesses obtain the best coverage at the best price, give us a call today at 888-834-8619.

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