If you own a retail business, you must take out an insurance policy. This will help to protect you, your employees, and your customers from certain risks.
When choosing retail insurance for your business, there are several factors that you need to consider including what type of coverage you need, how much it will cost, and how to choose the right provider. Find out all of this and more below.
What are the key components of retail insurance?
Retail insurance typically includes the following key components, although you may find that you do not need all of these for your business.
- Property insurance
Property insurance covers your store, its fixtures, inventory, and equipment. When considering property insurance, you need to think about how much your assets are worth.
- General liability insurance
General liability insurance protects you against claims of bodily injury or property damage. When considering general liability insurance, consider the likelihood of accidents or damage.
- Business interruption insurance
Business interruption insurance covers you for unforeseen events that force your retail business to close temporarily. When considering business interruption insurance, think about how long your business could survive without an income.
- Worker’s compensation insurance
Worker’s compensation insurance covers you if your employees become injured or fall ill due to work-related activities. When considering worker’s compensation insurance, think about the cost of medical expenses and lost wages.
- Product liability insurance
Product liability insurance protects you if a product you sell causes harm to one of your customers, which could result in a lawsuit. When considering product liability insurance, think about the potential harm your products could cause.
- Cyber liability insurance
Cyber liability insurance safeguards your business against losses resulting from online data breaches and cyber-attacks. When considering cyber liability insurance, think about how at-risk you are of online attacks.
How much does retail insurance cost?
The cost of retail insurance depends on several factors including:
- The type of retail business you run
- The location of your business
- The condition of the building
- The security measures in place
- Your claims history
- The amount of coverage you need
When deciding on the amount of coverage you need, you need to consider the risk level you are willing to take. If you do not have a lot of savings or money put aside to cover you in the event of a robbery, an employee accident, or a natural disaster, your insurance policy must be able to cover you for these potential occurrences.
How to choose a retail insurance provider
The first thing you are probably going to want to consider when choosing a retail insurance provider is the cost. You can easily compare prices and quotes online, enabling you to find the best deal for your business. When doing this, you may find that independent insurance agents are more affordable than more well-known companies.
Secondly, it can be a good idea to read customer reviews to see their customer service, as you want the claims process to be as straightforward as possible.
Lastly, you may want to see what digital tools they offer, which may make managing your policy quicker and easier for you.