Retail Store Business Insurance

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Recommended business insurance policies for retail stores

From smoke shops to electronics stores, retail shops are susceptible to theft, fires, injuries, and lawsuits. Insureon helps retail business owners secure the policies they need for their unique risks.

Business owner’s policy icon

Business owner’s policy

A BOP bundles commercial property insurance and general liability insurance in one plan. It's often the most cost-effective type of business insurance for retailers.

  • Customer injuries
  • Damaged business property
  • Business interruption incidents
General liability insurance icon

General liability insurance

This policy covers common retail shop risks, such as a customer slipping in a spill at a grocery store. Bundle with commercial property insurance for savings in a BOP.

  • Advertising injuries
  • Damage to a customer's personal property
  • Product liability insurance
Workers’ compensation insurance icon

Workers’ compensation insurance

Most states require workers' comp for retail businesses that have employees. It also protects sole proprietors from work bodily injury costs that private health insurance might deny.

  • Employee medical expenses
  • Disability benefits
  • Lawsuits over employee injuries
Cyber insurance icon

Cyber insurance

Also known as cyber liability insurance, this policy helps retail stores survive data breaches and cyberattacks. It's recommended for any shop that handles credit card numbers or other sensitive information.

  • Customer notification expenses
  • Fraud monitoring services
  • Cyberextortion demands
Umbrella / excess liability insurance icon

Commercial umbrella insurance

Umbrella insurance boosts coverage on a retailer's general liability insurance, employer’s liability, or commercial auto insurance once the policy reaches its limit.

  • Customer injury lawsuits
  • Customer property damage lawsuits
  • Employee injury lawsuits
Commercial auto insurance icon

Commercial auto insurance

Most states require commercial auto insurance for business-owned vehicles. This policy covers accidents involving a retailer's delivery van or other vehicle.

  • Damage to another vehicle
  • Injuries caused to another person
  • Repairs due to vandalism or weather
Looking for different coverage? See more policies.

How much does insurance cost for retail stores?

A retailer applying for insurance quotes on a laptop.

Several factors contribute to the cost of insurance coverage including:

  • The types of retail products and services offered, including grocers and thrift stores
  • Business equipment and property
  • Your annual business revenue
  • Where your business operates
  • Number of full-time, part-time, and seasonal employees
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How do I get retail store insurance?

It’s easy to find insurance for retail store businesses. Whether you’re a small bridal shopflorist, or pet store operator, you’ll need to have some basic information about your business available.

Our application will ask you for your annual revenue and payroll, among other details. You can buy a policy online and get a certificate of insurance with Insureon in three easy steps:

  1. Complete a free online application.
  2. Compare free quotes and choose a policy.
  3. Pay for your policy and download a certificate for proof of insurance.

Insureon's licensed insurance agents work with top-rated U.S. providers to find the right insurance plan for your retail store business, from franchise locations to e-commerce retailers.

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Common questions about retail business insurance

If I have to temporarily close my store, am I covered by insurance?

If damage to your building, equipment, or inventory could force your business to close, business interruption insurance should be an essential part of your risk management plan.

Business interruption insurance, also known as business income insurance, compensates small business owners for their normal operating expenses, as well as other associated costs if a fire or other commercial property insurance claim forces you to temporarily close your doors.

Specifically, it can help pay for:

  • Loss of income
  • Rent or lease payments
  • Relocation costs
  • Employee wages
  • Taxes
  • Loan payments

This policy typically offers up to 12 months of lost income coverage, which means you can keep your employees even if it takes your business a year to rebuild. However, it is important to read your policy carefully to know exactly how long your benefits last.

Do retailers need product liability insurance?

Faulty goods can impact retailers. If your store sells a product that turns out to be harmful or defective, you can be liable for any damage it causes.

When a product is deemed dangerous, anyone involved in the journey from manufacturer to consumer can be held liable, including the design company, materials vendors, distributor, and all retailers that sold the product. 

However, understanding what causes product liability lawsuits and taking the proper steps to manage those risks can ensure public safety, as well as potentially save your small business a fortune.

One of the most important steps is carrying the proper insurance to shield your business from potential lawsuit costs. Consider investing in these retail insurance policies:

  • Product liability insurance: If your general liability insurance policy excludes damages caused by products, ask to add a product liability insurance rider to your coverage. In exchange for a higher premium, a product liability rider offers your small business the extra protection that a general liability policy wouldn't normally cover.
  • Product recall insurance: Covers the costs of notifying customers and disposing of faulty items. This is usually an endorsement you can add to your general liability policy.

Are stores insured against shoplifting?

When it comes to shoplifting, it's not if but when it will happen. And while there's no way to 100% safeguard your business, you can take steps to protect your assets and minimize the damage.

In the event of an incident, the following types of small business insurance policies can help your business recover from the financial losses of stolen items and reputational damage:

What other insurance policies should commercial retailers carry?

To fully protect your retail store business from all risks and liabilities, you may need additional types of coverage. For certain locations and landlords, your retail store might be required to carry liability insurance before you can even sign a lease.

Some of the above types of insurance can be added to a BOP for additional coverage, as well as savings. Learn about other ways you can save money on small business insurance.

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