Clothing Stores
As the owner of a small retail store, you need to protect your inventory and have safeguards in place for any liability exposures. Here’s an overview of coverages to consider for your business.
Small Retailer Insurance To Protect Property, People and Profits
The retail industry has undergone a major transformation in recent years, with several big-box stores closing shop, downsizing or opting for an online-only presence. Retail sales showed gradual upward movement from July to August 2020, according to the National Retail Federation. Whether online, brick and mortar or a combination of the two, evaluating risk and liability exposure in your small retail business should be at the top of your to-do list.
Commercial Property Insurance
How do you protect your business against the financial damage that could result from vandalism, fires, severe weather or natural disasters? Commercial property insurance is the answer.
This type of policy can help pay for the repair or replacement of covered items, such as:
- Office, manufacturing or processing equipment
- Inventory
- Fencing and landscaping
- Company documents and signs
- Satellite dishes
However, commercial property insurance doesn’t typically cover damage caused by earthquakes or flooding, unless those events are added to your insurance policy.
Income after a disaster
Let’s say your business suffers physical property damage after a disaster and you have to close your facility or rebuild. How do you pay your employees or yourself? Business interruption insurance (also known as business income insurance) can replace lost net income or pay for ongoing expenses, including payroll or the mortgage, as well as relocation expenses, if necessary.
General liability
What if a shelf collapses, a ladder falls or a loose wire causes injury to one of your customers? Can you afford a liability claim against your business? With business general liability insurance in place, you’re well protected against the potential high cost of customer claims.
Cyber liability
It’s also wise to include cyber liability as part of your insurance package. If your computer system is hacked and customer data is compromised, cyber liability can help with the cost of claims, forensic assistance in recovering the stolen data and notifying clients.
Employee theft and crime
Could your employees ever become a liability to your business? Employee theft happens more frequently than you may think. Business crime insurance covers losses stemming from employee robbery, fraud, forgery or theft.
Supply chain liability
Supply chain liability is a broader line of coverage that protects you against perils involving your supply chain.
Contingent business interruption
Another way to protect your supply chain, but the covered perils are more limited and often require that physical property damage occur as part of the covered event.
Understand business-specific coverage
Your insurance professional is a valuable resource in understanding how to secure your retail business and tailoring your coverage to suit your specific needs.