We’ve said it before and we’ll say it again; every company is unique and your business insurance plan needs to reflect that. There are many risks in operating a retail store, from loss of inventory to interruption of operations and damages from lawsuits. The right retail insurance plan can play a key role in ensuring business continuity and securing your store’s long-term financial security.

When it’s time to choose a new business insurance plan for your store, here are some things every store owner should consider to ensure the best coverage possible:

Start With Your Physical Space

Just like any other business, every retail store needs insurance coverage to protect the physical space you operate in. Whether you own or rent your property will help dictate the exact types of coverage you need, but you need some sort of building coverage nonetheless.

Protect That Inventory

As a retail store, few things can cause more disruption than damage or theft of your stock. Insurance won’t make up for the hassle this can cause but can help compensate for any financial loss from damage or theft of your products or materials.

When deciding on the value of inventory you need coverage for, don’t forget to account for any seasonal variations in the quantity and value of what you have on hand.

Double-check that your business contents insurance includes coverage for theft from employees. It’s unfortunate to have to even think about it but the reality is that it can and does happen, so your insurance coverage should account for this.

Furniture and Equipment Comes Next

Protecting your building and inventory from loss or damages are some of the most important insurance coverages a store needs to have. Beyond your space and products, don’t forget the other assets that help to facilitate your sales and business activities, such as cash registers, phones, computers and furniture.

Business contents insurance is important to protect against damage, theft or loss of this necessary equipment. You may also want to consider coverage in the event of an accidental breakdown of equipment that your business relies on for day to day operations.

Don’t Forget About Customer Possessions

Does your store offer any sort of repairs or services for client goods? If so, those items need to be insured while in your possession. 

Your business contents insurance doesn’t apply here as you don’t actually own the goods, so your store’s insurance policy should include Bailee insurance coverage. If you offer pick up or delivery, this coverage will also apply while the items are in transport.

Dealing With a Forced Closure

If sales make up the bulk or entirety of your revenue, then a forced closure can have serious impacts on your financial security. Consider business interruption coverage when deciding on a retail insurance plan to ensure you can meet your financial obligations if you need to close for recovery from events such as property damage or theft.

If the Lawyers Get Involved

No store owner likes to deal with a lawsuit, but many business owners will have to deal with it at one point or another. Lawsuits can prove costly in both lawyer fees and damages, so commercial general liability insurance is an absolute must. 

Your insurance agent can help you choose the right level of liability coverage needed in case of a lawsuit due to incidents such as accidents or injuries that happen on your property or are caused by your products.

Re-Evaluate Your Coverage On a Regular Basis

Once you’ve settled on a comprehensive insurance plan for your store, don’t get too comfortable. As your business evolves, your insurance coverage needs to evolve with it. Moving to a new location, keeping more inventory on hand, new product or service offerings or significant changes in your revenue can all have an impact on the types and amount of coverage you need. 

When these major changes occur, give your insurance agent a call to make sure your coverage is keeping up. It’s far better to spend the time reviewing your insurance plan and end up keeping things the same than being left in the lurch because of an out-of-date insurance policy.

Reviewing your insurance coverage on a regular basis could also help you save a few dollars! You might be eligible for new discounts or coverages that could lower your premium, or get better coverage for the same price. Why spend more money if you don’t have to?

Running a retail business can be a complex and timely job, but choosing insurance to protect your store doesn’t have to be. Take these considerations into account when working with your local insurance agent to choose a policy suitable for your store’s unique operations, and get the peace of mind knowing you have the coverage you need should problems occur.

Cayuga Mutual Insurance offers a range of commercial insurance products designed specifically for retail stores. Contact our professional agents today and get started with a new retail insurance policy for your store in the Haldimand County, Norfolk County or Binbrook areas.