Retailers Insurance

How Much Does General Liability Insurance for a Small Retail Business

For a Small Retail business the cost would be around $450 per year. This would be for a basic Commercial General Liability policy with a $1 Million policy limit. I guarantee that is a lot less than you thought it would be.

Retail Business Insurance can include a range of coverages. Most of these coverages are the same as any other commercial enterprise that has customers on their premises. 

Basic Commercial Insurance Coverages

There are basic insurance coverages that every commercial enterprise owners need.

Commercial General Liability Insurance Coverage.

Your Retail General liability insurance coverage will protect you against any third-party claims for bodily injury or damage to property. A General Liability policy will cover you in the event one of your client’s or a visitor is injured. Since a personal injury lawsuit is your largest financial risk, general liability is easily the most important coverage type for Small Retail business owners. An example of claim that would be covered under this policy would be if one of your customers tripped and fell over an item you you had on display. You would have coverage in this case. Another overlooked benefit of a General Liability Insurance for your retail business is that the cost of hiring a lawyer is covered. If you are sued for a covered claim the insurance company will hire attorneys to represent you. These costs are covered under the policy limits. You can easily imagine how costly it would be if you had to hire an attorney. Just think what would happen to your personal financial situation  if someone sued you for an accident on your premises while you had no insurance.

Property Insurance For Retail Business

Retail Business owner’s should have Retail Business Property Insurance. This covers them for loss or damage to their equipment or other items of personal property used to operate the business. If there is a fire and all your equipment and inventory is destroyed you will be covered. It may also cover improvements you made to any rented space. The amount of these coverages varies according to the value of your inventory and equipment.

Worker’s compensation Insurance for Retail Business Owners.

If you have employees most States require you to have Workers Compensation insurance to cover your employees. Your general liability insurance does not cover employees. So if an employee is injured while at work you will be responsible for their medical care and lost wages if you do not have coverage. The rate for Workers Compensation Insurance for Pilates and Yoga Studio Owners is usually less than 2% of payroll. So for example if you had $100,000 in payroll for your employees, your cost for Workers Compensation would be around $2,000 a year.($100,000X2%=$2.000). It is also illegal in most States to  not have coverage for your employees.

Commercial Auto Insurance.

If you use vehicles in the operation of your business you need to have Commercial Auto Insurance. If you do not get this and you are using your vehicle with a personal insurance policy there is a significant chance your claim will be denied if you are involved in an accident. This would leave you responsible for any damages and attorney fees.

Conclusions About Insurance

Whether you run your own studio or teach one class per week, finding affordable coverage you can count on is important. We have plans start at $40 per month. You can get the additional coverages you need quickly. If you find out later you wish to add more coverage this can be accomplished the same day.

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