Retail Insurance

Retail commercial insurance is a specific type of business insurance designed to protect brick-and-mortar and online retailers from various financial risks associated with their operations. Unlike standard commercial insurance, it addresses the unique challenges and exposures faced by retail businesses.

Base Coverages

The specific coverages included will vary significantly depending on the type of business, its size, location, industry, and specific risks. However, there are some general categories of coverage that are frequently found in many business insurance policies:

General Liability:

• General Liability: This comprehensive coverage forms the cornerstone, protecting against claims of bodily injury, property damage and personal injury to others arising from your business operations, products, or premises. Even if a lawsuit against your business is ultimately found to be invalid, General Liability covers your legal defense costs and includes attorney fees, court costs, and other associated expenses. The most common coverages include: Show More....
  • Bodily injury: Covers medical expenses, lost wages, and other costs associated with bodily injuries sustained by others due to your business activities, on your premises, or by your products.
  • Property damage: If your business activities (including employees, vehicles, or products) damage someone else's property, this covers repair or replacement costs.
  • Personal & Advertising Injury: Covers legal defense costs and damages awarded to others due to non-physical injuries stemming from your business activities, including libel and slander, copyright infringement and wrongful eviction.
  • Products and Completed Operations: Protects against claims alleging injuries or property damage caused by defective products your business manufactures, distributes, or sells. It is essential for businesses that manufacture, distribute, or service products.
  • Hired and Non-Owned Auto: Typically covers liability only coverage arising from rented, leased, or employee-owned vehicles used for business purposes.

Commercial Property:

• Commercial Property Insurance: Covers the repair or replacement costs of your main building, rented offices and any owned structures like garages or storage sheds as well as the furniture, equipment, inventory, and other business belongings inside your building.
• Business Interruption: This can help cover lost income and operating expenses if your business is forced to close or operate at a reduced capacity due to a covered event like a fire, natural disaster, or power outage.

Common Additional Coverages:

• Crime Insurance: Protects against financial losses stemming from fraudulent activities like employee theft, embezzlement, forgery, credit card fraud, or burglary and robbery.
• Cyber Liability: Covers costs associated with data breaches, including legal fees, notification to affected individuals, and credit monitoring. This is especially relevant for businesses that store customer information, like credit cards or other sensitive information online or on-premise.
• Equipment Breakdown: Covers repair or replacement costs for essential business equipment damaged due to mechanical breakdown, wear and tear, or power surges.
• Employment Practices Liability: Protects against lawsuits alleging discrimination, wrongful termination, or other employment-related issues.
• Inland Marine Insurance: While some standard insurance covers property at a fixed location, Inland Marine covers property while in transit, such as goods being shipped or transported. This is sometime referred to as Business Equipment Protection.
• Workers Compensation Insurance: A mandatory insurance program in most states that protects both employees and employer by providing medical care and wage replacement benefits to employees who are injured on the job. The most common additional coverages included are: Show More....
  • Employers Liability: This coverage protects your business if an employee sues you for a work-related injury or illness, alleging that your negligence contributed to their condition. It covers medical expenses, lost wages, and legal defense costs associated with such lawsuits.

Optional Coverages to Consider:

• Commercial Auto Insurance: Covers your business vehicles for collisions, comprehensive damage, liability, and medical payments.
• Event Insurance: A specialized, short-term policy for protecting your business or corporate events, like charitable fundraisers, fairs/festivals, shows (cars, planes, concerts, etc.), company picknicks/BBQs, and much more.
• Excess Liability Insurance: Provides an additional layer of liability protection by kicking in when primary liability insurance limits are exhausted. This is similar to an Umbrella except that it provides additional coverage specifically for a single underlying insurance policy, typically general liability.
• Umbrella Insurance: Provides additional liability coverage beyond the limits of your primary policies. This is similar to Excess Liability except that this provides broader coverage beyond standard business insurance policies, potentially encompassing liability, property damage, and even certain employment-related claims.

Benefits of Retail Commercial Insurance:

• Peace of mind: Knowing you have financial protection against unexpected events can provide significant peace of mind and allow you to focus on running your business.
• Financial protection: Covers potentially devastating costs arising from lawsuits, product liability claims, or business interruptions, safeguarding your financial stability.
• Compliance: Certain types of insurance, like workers' compensation, may be mandatory depending on your location and number of employees.
• Competitive advantage: Demonstrating insurance coverage can enhance customer trust and confidence in your business.

Remember:The specific coverages and limits you need will depend on the size, type, and location of your retail business, as well as your online presence. Consulting with an insurance professional is crucial to assess your individual risks and choose the right coverage options for your business. Regularly reviewing and updating your insurance policy as your business evolves is essential to maintain adequate protection.