Carpet and Floor Covering Store Insurance
Why do carpet and floor covering stores need insurance?
If a customer claims that chemicals in a carpet made them sick, the result could be a lawsuit. Business insurance covers legal fees related to products, and can pay to replace carpets and rugs destroyed in a fire or other incident. It's often required by state laws, contracts, and commercial leases.
Find the right coverage
Insureon helps owners of carpet and flooring stores find insurance quotes that match their unique risks.
Get free expert advice and peace of mind knowing you have the right property and liability coverage for your small business.
What type of insurance is recommended for a carpeting and floor covering store?
These insurance policies cover the most common risks at stores that sell rugs, carpets, and other floor coverings.
Business owner's policy
A business owner's policy, or BOP, is a cost-effective way for owners of carpet stores to buy general liability coverage and commercial property coverage together.
- Customers harmed by chemicals in carpets
- Damaged rugs or other inventory
- Business interruption coverage
General liability insurance
A general liability insurance policy covers third-party lawsuits from injuries and property damage. For example, a customer could sue if their asthma was caused by VOCs from a carpet.
- Customer bodily injuries
- Product liability claims
- Libel and other advertising injuries
Workers’ compensation insurance
Most states require workers' comp as soon as a carpet 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
- Lawsuits from work-related injuries
Cyber insurance
This policy helps carpet shops recover financially from data breaches and cyberattacks. It’s recommended for any business that handles credit cards or other customer data.
- Customer notification expenses
- Fraud monitoring services
- Cyber extortion demands
Commercial umbrella insurance
Umbrella insurance boosts coverage on a carpet 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 policy covers legal defense costs if your carpet store'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 carpet and floor covering store?
A carpet store with only a few employees won't have to pay a lot for insurance coverage.
Factors that affect the cost of carpet store insurance include:
- Products you sell, such as rugs, carpets, laminate, or linoleum
- Services you offer, such as delivery or flooring installation
- Whether you have a brick-and-mortar business or an e-commerce business
- Business operations and income
- Business location
- Policy limits and deductibles
- Additional insured endorsements
- Claims history
How do I get carpet store insurance?
It's easy to get insurance for carpet stores and carpet cleaning businesses 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 need flooring contractor insurance or carpet cleaning insurance.
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FAQs about business insurance for carpet and floor covering stores
Review answers to frequently asked questions about insurance for stores that sell carpets and other floor coverings.
Do carpet and floor covering shops need product liability insurance?
Product liability insurance is crucial for every retail store, including your carpet shop.
This policy covers a wide range of product lawsuits, such as:
- Carpets contaminated with PFAS chemicals
- Carpets that off-gas volatile organic compounds (VOCs)
- Faulty installation, such as exposed carpet tacks
- Lack of warning labels on a flammable rug
- Decorative rugs that are a tripping hazard
Product liability insurance covers legal costs when a product sold at your store causes a bodily injury or damages someone's property. Because of recent litigation with chemicals in carpets, this is one of the most important policies for your carpet store.
If a customer is harmed by a faulty product or inadequate warnings, the resulting legal bills or medical costs 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 carpet store insurance protect against theft?
Yes, you can buy business insurance that protects against losses from theft. These types of business insurance provide reimbursement in the event of a burglary or similar incident:
- Commercial property insurance covers theft of carpets, rugs, 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 carpet and floor covering stores carry?
Small business owners should consider several other types of coverage as part of their carpet store's 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 unexpected event. It's also called business interruption insurance.
- Equipment breakdown insurance: If a carpet cleaner, point of sale device, or other machinery fails unexpectedly, equipment insurance 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 your carpets while they are in transit or being installed at a job site.
- Product recall insurance: Carpet stores can face significant losses when a product is recalled. 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 business insurance policies for your risks, chat with a licensed agent today.