Retail Business Insurance Cost


As a retail business owner, you face a number of risks every day when you open up shop. A customer could slip and fall in your store. An employee could get injured on the job while stocking shelves. Or, a natural disaster could force you to close temporarily, meaning lost income. It’s important that you have the proper insurance set up to protect yourself from these situations and more. But just how much is all this insurance going to cost you? Let’s take a look.

Types of Insurance a Retailer Needs

Two of the most important policies a retail business should have in place are a Business Owners Policy, or BOP, and Workers Compensation.

A Business Owners Policy is an affordable bundled insurance option available to most small businesses with less than 100 employees. It combines general liability, property, and business interruption coverages. General liability protects you from third party claims of injury or damage – such as the aforementioned slip and fall case – while property damage protects the physical property and equipment you need to operate. Business interruption insurance will reimburse you for lost income and the cost of temporary relocation if you’re forced to close due to a disaster like a fire or vandalism.

If you have employees, it’s likely you’ll need Workers Compensation insurance – 49 states require it. Workers Compensation reimburses employees for lost wages and pays medical bills due to job-related injuries or sickness. It also protects your business from being sued.

Let’s take a look at some of the risk factors affecting the cost of these policies for retailers.

Risk Factors Affecting the Cost of Retail Insurance

There are number of details about your retail business that can impact the cost of insurance. A few you’ll have to provide when getting a quote, or cost estimate, may include:

  • Company size
  • Geographic location
  • Store square footage
  • Type of work performed by employees
  • Previous insurance claims
  • Amount of property to insure
  • Age of equipment and other property
  • Safety and security systems

Cost Examples

Now let’s take a look at some examples of prices found using CoverWallet’s insurance assessment tool, to get a sense of the range in costs:

  • An eyeglass shop with 10-19 employees in Chicago: average annual premiums of about $4,900 for general liability, $2,500 for commercial property, and $1,600 for workers compensation.
  • A home furnishings store in Queens, New York with 20-49 employees: average annual premiums of about $145,000 for general liability, $110,000 for commercial property, and $107,000 for workers compensation.
  • A convenience store in Columbus, Ohio with 1-4 employees: average annual premiums of about $5,700 for general liability, $1,800 for commercial property, and $3,000 for workers compensation.
  • A bookstore in Glendale, Arizona with 10-19 employees: average annual premiums of about $2,700 for general liability, $2,200 for commercial property, and $1,100 for workers compensation.

As you can see, factors like the location and number of employees significantly impact the premiums for a given business. Combining general liability and commercial property insurance into a BOP can help to lower costs. While these are just examples, to find out how much insurance will cost your business you can request a quote.

 

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