Why do book or record stores need insurance?
If a fire destroys a bookstore's inventory, or a customer slips and suffers an injury at a record store, it could bankrupt your business. Insurance helps your shop recover quickly from property damage and lawsuits. Beyond being a wise investment, it's often required by laws, leases, and loans.
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With Insureon, booksellers and record store owners can get insurance coverage the same day they apply for quotes.
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What type of insurance is recommended for a book or record store?
These insurance policies cover the most common risks at stores that sell books and music.
Business owner's policy
A business owner's policy, or BOP, is a cost-effective way for owners of bookshops and record stores to buy general liability coverage and commercial property coverage together.
- Slip-and-fall injuries
- Accidental property damage
- Business interruption coverage
General liability insurance
A general liability policy covers third-party lawsuits from injuries and property damage. For example, a customer could sue if they're injured by a sharp edge on a broken record.
- Customer bodily injuries
- Product liability claims
- Advertising injuries, such as copyright infringement
Workers’ compensation insurance
Most states require workers' comp as soon as a book or record business hires its first employee. It also protects sole proprietors from work-related medical bills that health insurance might deny.
- Employee medical expenses
- Disability benefits
- Legal fees from workplace injuries
Cyber insurance
Cyber liability insurance helps bookstores recover financially from data breaches and cyberattacks. It’s recommended for any business that stores customer information.
- Customer notification expenses
- Fraud monitoring services
- Cyber extortion demands
Commercial umbrella insurance
Umbrella insurance boosts coverage on a record store's general liability, employer’s liability, or commercial auto insurance policy once the limit is reached on a claim.
- Customer injury lawsuits
- Employee injury lawsuits
- Auto accident lawsuits
Commercial auto insurance
This type of coverage pays for legal costs if your bookstore's delivery van or other vehicle gets into an accident. Each state has its own requirements for auto liability insurance.
- Injuries caused to another person
- Property damage caused by your vehicle
- Vehicle theft and vandalism
How much does insurance cost for a retail store?
An independent bookstore with only a few employees won't have to pay a lot for business insurance.
Factors that affect the cost of bookstore insurance include:
- Products you sell, such as rare books, vintage records, or gifts
- Services you offer, such as delivery
- Whether you have a brick-and-mortar business or an e-commerce business
- Business operations and income
- Business location
- Policy limits and deductibles
- Claims history
How do I get book or record store insurance?
It's easy to get bookstore insurance or record store insurance if you have your company's information on hand. Our application will ask for basic facts about your shop, such as revenue and number of employees.
You can buy a policy online and get a certificate of insurance with Insureon in three easy steps:
- Complete a free online application.
- Compare insurance quotes and choose policies.
- Pay for your policy and download a certificate.
Insureon's licensed insurance agents work with top-rated U.S. insurance companies to find the right coverage for your business needs, whether you work independently or hire employees.
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FAQs about business insurance for bookstores or record shops
Review answers to frequently asked questions about insurance for stores that sell books, records, and similar items.
Do bookstores or record shops need product liability insurance?
Product liability insurance is crucial for every retail store, including record stores and bookshops.
This policy covers legal costs when a product sold at your store causes a bodily injury or damages someone's property. Product lawsuits are common, which is why every retail store needs this coverage.
If a customer is harmed by a product, the resulting legal bills could bankrupt your small business. Even if you weren't responsible for the product defect that caused the issue, you could still be held liable. That's why retailers, manufacturers, wholesalers, and distributors all need this coverage.
When you buy commercial general liability insurance or a business owner's policy, it usually includes product liability insurance. You might also see this coverage called products-completed operations insurance.
Does book or record store insurance protect against theft?
Yes, you can buy business insurance that protects against losses from theft. These types of insurance provide reimbursement in the event of a burglary or similar incident:
- Commercial property insurance covers theft of books, records, and other products from your store. It also protects against vandalism, fires, storms, and other events that damage or destroy business property. You can save money by bundling it with general liability insurance in a business owner's policy.
- Commercial crime insurance protects against losses related to employee dishonesty, such as cash register theft or check fraud. You can usually add it to your business property insurance.
Property claims cause your premium to go up, which is another reason it's best to prevent theft in the first place. Some insurers even offer a discount when you install an approved security system or take other steps they recommend.
What other types of insurance policies should bookstores or record shops carry?
Record shop and bookstore owners should consider buying additional coverage as part of a comprehensive risk management strategy. That includes:
- Business income insurance: This policy covers employee wages, rent, lost income, and day-to-day expenses when your store is forced to close due to damage from a fire, storm, or other covered event. It's also called business interruption insurance.
- Equipment breakdown insurance: If a point of sale device or other piece of business equipment fails unexpectedly, this policy can help pay to repair or replace it.
- Electronic data processing insurance: This policy protects against financial losses related to data loss on computers, backup drives, operating systems, network storage servers, and other eligible devices.
- Inland marine insurance: Because commercial property insurance only covers items at your business address, you may need inland marine insurance to protect shipments of textbooks and other products while they are in transit or stored off-site.
- Product recall insurance: Product recalls can be expensive. This policy helps cover the cost of removing defective products, along with related PR efforts.
If you have questions or need help finding the right insurance solutions for your risks, chat with a licensed agent today.