Several factors affect the cost of retail business insurance, including your store’s specialty, size, and inventory. Cost estimates are sourced from policies purchased by Insureon customers.
Business owner’s policy costs for retail stores
Retail businesses pay a median premium of about $65 per month, or $790 per year, for a business owner’s policy. This policy combines general liability insurance with commercial property insurance, typically at a lower rate than if the policies were purchased separately.
A BOP protects against third-party injuries and property damage, along with damage to your own business property. Because of its increased coverage and affordability, it’s the policy most often recommended by Insureon’s licensed agents.
Learn how to save money on your policy, which coverage limits to choose, and more on Insureon's business owner's policy cost analysis page.
The cost of a BOP depends on the value of your business property
Among retail businesses that purchase a business owner’s policy with Insureon, 31% pay less than $600 per year and 39% pay between $600 and $1,200 per year. The cost increases with the value of your business property.
Which business owner’s policy limits do retail companies choose?
Most retail businesses (93%) choose a business owner’s policy with a $1 million per-occurrence limit and a $2 million aggregate limit.
Your store’s size, specialty, and inventory affect the cost of a BOP for retail businesses
Retail businesses with large premises, such as drug store with two floors, typically pay more for a business owner's policy than a small store, like a mom-and-pop pet shop. Your store’s specialty and inventory will also affect your premium.
The annual median cost for a convenience store is $1,800, while the median for a pet shop is about $690 – or less than $35 a month. As you can see, the cost varies significantly across professions.
General liability insurance costs for retail stores
Retail storeowners pay a median premium of less than $45 per month, or $500 per year, for general liability insurance. This policy provides protection for third-party bodily injuries, property damage, and advertising injury.
Insureon’s licensed agents typically recommend a business owner’s policy over a standalone general liability policy. A BOP combines general liability insurance with commercial property insurance to protect your retail business against accidents, oversights, and lawsuits. This policy costs less than purchasing each policy separately.
Learn how to save money on your policy, which coverage limits to choose, and more on Insureon's general liability insurance cost analysis page.
The cost of general liability insurance depends on your industry risk
Among retail businesses that purchase general liability with Insureon, 32% pay less than $400 per year and 51% pay between $400 and $800 per year. High-risk retail businesses tend to pay more for this policy.
Common general liability policy limits for retail businesses
Policy limits determine how much your insurer will pay on covered claims. A per-occurrence limit is the maximum your insurer will pay for a single incident, while an aggregate limit is the maximum your insurer will pay on any claims during your policy period, typically one year. Higher limits cost more – and provide better coverage.
Most retail businesses choose general liability policies with a $1 million per-occurrence limit and a $2 million aggregate limit. As your small business grows, you may need to expand your policy limits.
Workers’ compensation insurance costs for retail stores
To meet your state’s requirements and avoid penalties, retail businesses with employees typically must purchase workers’ compensation insurance. This policy helps cover medical bills and partial lost wages when an employee suffers a work-related injury or illness. With a median premium of less than $90 per month, or $1,070 per year for retail companies, policy cost is determined by your number of employees and occupational risk, among other factors.
Learn how workers' comp premiums are calculated and more on Insureon's workers' compensation insurance cost analysis page.
The cost of workers’ comp depends on the number of employees
Among retail businesses that purchase workers’ compensation insurance with Insureon, 25% pay less than $700 per year and 39% pay between $700 and $1,400 per year. The cost increases with the size of your workforce.
Umbrella / excess liability insurance costs for retail stores
Pet supply stores, clothing stores, and other retail businesses pay a median premium of less than $65 per month, or $760 per year, for umbrella insurance. This policy provides extra liability coverage for the most expensive lawsuits. Once an underlying policy’s limit is reached, umbrella insurance boosts coverage on your company’s general liability or employer’s liability insurance.
Learn how to save money on your policy, which coverage limits to choose, and more on Insureon's umbrella insurance cost analysis page.
Compare quotes from trusted carriers with Insureon
Insureon’s retail business insurance agents work with top-rated U.S. carriers to find affordable coverage that fits your business. Apply today to compare multiple quotes with one free online application. Work with an account manager specializing in the unique risks of convenience stores, electronics stores, smoke shops, and pet stores.