Why do cell phone stores need insurance?
Selling mobile devices, laptops, and other electronic devices can bring a crowd to your cell phone store, but that also brings risk. Cell phone insurance covers legal fees if a customer sues over a product defect in your smartphones. It also protects against other liabilities, like data breaches.
Find affordable insurance
With Insureon, cell phone store owners can compare quotes from top-rated insurance companies.
A licensed insurance agent will help make sure you get the right coverage at a price you can afford.
What types of insurance do cell phone stores need?
These insurance policies cover the most common risks at cell phone stores.
Business owner's policy
A business owner's policy, or BOP, is a cost-effective way for owners of cell phone stores to buy general liability coverage and commercial property insurance together.
- Injuries caused by defective products
- Damaged or destroyed inventory
- Business interruption coverage
General liability insurance
This policy covers third-party customer injury and property damage lawsuits. This includes accidental damage to a customer's mobile device caused by an employee at your store, such as a cracked screen or liquid damage.
- Customer bodily injuries
- Product liability claims
- Social media lawsuits
Workers’ compensation insurance
Most states require workers' comp as soon as a cell phone store 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 injured workers
Cyber insurance
This policy helps cell phone shops recover financially from data breaches and cyberattacks. It’s sometimes called cyber liability insurance or cybersecurity insurance.
- Customer notification expenses
- Fraud monitoring services
- Cyber extortion demands
Commercial umbrella insurance
Umbrella insurance boosts coverage on a cell phone 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 accidents involving a cell phone store's delivery van or other vehicle. 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 business insurance cost for retail stores?
A small cell phone store with only a few employees won't have to pay a lot for business insurance.
Factors that affect your cell phone store insurance cost include:
- Types of cell phones you sell (Apple iPhones, Samsung Androids, etc.)
- Type of phone protection plans and repair options you offer (warranties, in-store cell phone repair, screen repair, tech support, etc.)
- Business income
- Location
- Policy limits and deductibles
- Coverage options, including any additional insureds
- Claims history
How do I get cell phone store insurance?
It's easy to get business insurance for your cell phone store if you have your shop's information on hand. Our application will ask for basic facts about your business, 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. providers to find the right insurance coverage for your cell phone store, whether you work independently or hire employees.
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FAQs about cell phone store insurance
Review answers to frequently asked questions about insurance for cell phone stores.
Do cell phone stores need product liability insurance?
Yes, every cell phone store should carry product liability insurance. This policy covers legal costs when a product injures a customer or damages their property.
The intricate gadgets and accessories sold at a cell phone store means a greater chance of a product lawsuit. For example, a cell phone charger could overheat and cause a fire. 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.
Fortunately, when you buy general liability insurance or a business owner's policy it typically includes product liability insurance.
Does cell phone store insurance protect against theft?
Yes, you can buy insurance that provides financial protection against theft, burglaries, vandalism, and other business property losses, helping you avoid out-of-pocket expenses. Here are the most common types of insurance that protect against theft:
- Commercial property insurance covers financial losses in the event of a smash-and-grab burglary or other theft at your cell phone store. It also covers damage from fires, storms, and vandalism. Consider bundling it with general liability insurance in a business owner's policy to save money.
- Commercial crime insurance protects against losses caused by dishonest employees, such as cash register theft or stolen property. You can usually add it to your property policy or BOP.
Property claims cause your premium to go up, which is another reason it's best to prevent theft in the first place. Sometimes insurers even offer a discount when you install an approved security system or take other recommended steps.
What other types of insurance policies should cell phone stores carry?
Cell phone store owners should consider the following types of coverage, in addition to those mentioned above:
- Business income insurance helps cover 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 property claim. It's sometimes called business interruption insurance.
- Equipment breakdown insurance covers equipment that fails unexpectedly, such as a sudden malfunction of your point of sale devices or other machines you depend on.
- Electronic data processing insurance protects against financial losses related to data loss on computers, backup drives, operating systems, network storage servers, and other eligible devices.
If you have questions or need help finding the right insurance plans for your risks, chat with a licensed agent today.