Retail stores need various types of insurance to protect their business. This includes general liability insurance, property insurance, product liability insurance, cyber insurance, workers’ compensation insurance and more.
Types of Insurance Coverage
General Liability Insurance
General liability insurance covers bodily injury, property damage and personal injury claims. For example, if a customer slips and falls, general liability insurance helps pay for medical bills and legal expenses.
Property Insurance
Property insurance covers damage or loss to the retail space and contents like inventory, fixtures and equipment from events like fire, storms and theft.
Product Liability Insurance
Product liability insurance is crucial for retailers that sell products, to cover costs if a product injures a customer.
Cyber Insurance and Workers’ Compensation
Cyber insurance helps cover data breaches and hacking incidents. Workers’ compensation insurance is required by most states to cover job-related illnesses and injuries to employees.
Additional Insurance Policies
Other types of insurance retail stores may consider are commercial auto insurance, employee dishonesty insurance, natural disaster insurance, and business interruption insurance. Retail spaces have unique risks from significant foot traffic, interactions with customers, inventory management and more. Picking the right insurance tailored to the business ensures proper protection from events that may harm operations.
Costs and Benefits
The cost of retail insurance depends on factors like location, size, types of inventory sold and more. However, most estimates fall between $400 – $1,200 a year. Though insurance costs money, it provides financial stability in case of the unexpected – from accidents to natural disasters. Having correct coverage helps retailers stay resilient to continue serving their community when the unthinkable strikes.
Insurance Needs for Supermarkets
Supermarkets, like other retail spaces, need insurance to protect assets, income, employees and against lawsuits. They often require similar policies such as general liability, property, and workers’ compensation insurance. Supermarkets have additional risks like hazardous materials, and therefore may also require specific coverage to address these.
Public Liability and General Liability Insurance
Public Liability Insurance protects against customer injury claims, which are common due to the high volume of foot traffic. General Liability Insurance covers injuries on the premises, property damage, and product liability, including the common slips and falls in supermarkets.
Cyber Policies and Operational Coverage
Business and retail insurance are tailored to protect both the business and its employees. Cyber policies are important for safeguarding against online threats, as many companies handle sales both online and offline.
Dealing with Claims
In the event of claims, businesses can either settle out of court or choose to fight the suit at trial. Insurance is essential in providing necessary medical care for sickness and injuries and assists in unfortunate events.