Furniture Store Insurance

Several factors affect insurance premiums for furniture retailers during the underwriting process, such as:

• Services and products offered: The products you sell, such as home decor, curtains, or carpets, will affect how much you pay for coverage. Insurers will also consider whether you offer services like installation, delivery, or interior design.
• Business operations. Insurance rates are typically higher for businesses that have a storefront than sellers on e-commerce platforms, such as Wayfair.
• Business property and equipment: It costs more to insure brand-new luxury couches and hydraulic furniture movers than used couches at a thrift shop and furniture dollies.
• Annual revenue: Furniture stores that bring in more revenue usually have greater exposure to liability claims and other losses, which increases your insurance rates.
• Business location: Insurance premiums vary based on property values, litigation trends, crime rates, risk of severe weather, and other regional factors.
• Coverage limits and deductibles: Higher policy limits provide coverage for more expensive claims at a higher cost, while choosing a higher deductible lowers your premium. Remember, your policy won't activate until you pay the deductible.
• Claims history: Shops with previous insurance claims can expect higher rates than those with a clean history of claims.
• Number of employees: Each additional staff member increases your insurance premiums because they each bring the risk of an injury or lawsuit.

The specifics of what you need to open a furniture store depend on the regulations in your location. You'll need to do a little research as some states, such as California, have strict standards in terms of fire safety and the chemicals used in furniture.

Here's what your store likely needs to open its doors:

• Business license. In most regions, your store will need a business license or registration with your state, county, or city. This is true for any type of business.
• Seller's permit. Your store will need a seller's permit or sales tax permit in order to sell goods and collect taxes. You can get a permit from your state's tax or revenue agency.
• Building permit. If you need to build or renovate your shop, or install new doors or signs, then you may need a permit from your local building or planning department.
• Business insurance. If your store has employees or a company-owned vehicle, you'll need to comply with your state's laws for workers' compensation insurance and commercial auto insurance.

Your business must also comply with local ordinances, zoning laws, and Occupational Safety and Health Administration (OSHA) regulations, such as keeping exit routes clear and ensuring furniture is safely moved and stacked.

Shoplifting and burglaries are big risks when you have a storefront. That's especially true if you sell expensive home decor items like small sculptures, picture frames, or candles.

There are a couple of crime insurance policies that can help you recover your financial losses, including:

• Commercial property insurance: This policy covers destroyed, damaged, and stolen property, including shoplifted items. It's also called business hazard insurance.
• Employee dishonesty coverage: Also called a fidelity bond, this coverage provides reimbursement for employee theft from your store or your customers.

Security systems and other loss control measures can help prevent theft, and can even save you money on your property insurance. Check with your insurance company to see if they offer a discount on your premium for certain precautions.

Keep in mind, seeking reimbursement for shoplifting will affect your claims history and may raise your insurance rates. Most shop owners report only larger burglaries to avoid a premium increase.

Yes, you can buy insurance that provides financial protection if an employee gets into an auto accident. Furniture wholesalers, distributors, and retailers that offer delivery all need to properly insure their vehicles.

There are two types of auto insurance for delivery vehicles:

• Commercial auto insurance is required in most states for vehicles owned by a business. It includes coverage for bodily injury liability and property damage liability, with physical damage coverage available as an option.
• Hired and non-owned auto (HNOA) insurance provides liability coverage for personal, rented, and leased vehicles used by your business, but it won't pay for damage to the insured vehicle.

Personal auto insurance won't cover any business driving beyond a commute, which is why you may need additional coverage. If you drive to deliver furniture, meet clients, or pick up supplies for your store, then you'll need commercial coverage for your vehicle.

It's easy to find affordable retail business insurance with Insureon. Our easy online application lets you compare quotes from trusted insurance companies to find policies that fit your budget and your unique risks.

Other ways for furniture store owners to save money on insurance include:

• Bundle policies. You can often save money when you purchase two or more types of coverage together from the same provider.
• Pay the annual premium. Insurance companies usually offer a discount when you pay the annual premium in full instead of making monthly payments.
• Customize your coverage options. Choose lower limits or a higher deductible to reduce your premium, but make sure your coverage is sufficient to cover a claim and that you can afford to pay the deductible in a crisis.
• Avoid accidents and claims. Policyholders can prevent employee injuries and customer accidents that lead to claims by training employees, installing a security system, and implementing other risk management strategies. A clean claims history helps keep your premium low.

Our insurance agents can help you find the right insurance solutions for your business, whether you sell sofas, recliners, tables, chairs, upholstery, antiques, or appliances.