Retail Store Business Insurance
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General liability insurance for retail businesses

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General liability insurance

General liability insurance covers common business risks like customer injury, customer property damage, and advertising injury. It protects your small business from the high costs of lawsuits and helps you qualify for leases and contracts.

General liability covers common retail risks

Convenience stores, pharmacies, vape shops, and other retail stores open their doors to customers every day. This traffic increases the chance of someone being injured or their belongings damaged.

General liability insurance covers customer accidents and lawsuits that are commonplace when dealing with the public. This policy offers liability coverage related to:

  • Customer injuries
  • Customer property damage
  • Damage caused by a product
  • Advertising injuries

Increase security and save money with a BOP

If you run a small retail shop, you may be able to bundle general liability insurance with commercial property insurance in a business owner’s policy (BOP). A BOP often costs less than purchasing each policy separately. Retail stores that are eligible for a BOP usually:

  • Have fewer than 100 employees
  • Have a small commercial location
  • Make less than $1 million in annual revenue
  • Operate in a low-risk industry
  • Need less than 12 months of business interruption insurance

Talk to a licensed Insureon agent to find out if a BOP fits your business.

Get free general liability insurance quotes from top U.S. providers

What coverage can general liability insurance provide for retail businesses?

Customer injuries

If a customer or delivery person is injured by an accident at your retail store, such as slipping in a spill, you could be held responsible for the resulting medical bills. If the person files a lawsuit, costs can add up quickly. General liability insurance can help pay for:

  • Medical bills
  • Attorney’s fees
  • Settlements
  • Court-ordered judgments

Note that this policy does not cover employee injuries. For that, you’ll need workers’ compensation insurance.

Customer property damage

Accidents involving customer property can occur at any small retail business. General liability insurance shields you when customer property is damaged.

For example, a customer at your jewelry store might ask you to replace the battery in a watch. If the watch is accidentally scratched during the process, general liability insurance can help cover the cost of repairing or replacing the watch. If the customer decides to sue, this policy can also cover your legal expenses, including the cost of hiring a lawyer.

Damage caused by a product

General liability insurance for retailers usually includes product liability insurance, which protects against customer injuries or other damage caused by a product you sold. For example, if a vape pen explodes and injures a customer, your general liability insurance can cover the customer’s medical bills – or legal fees if the customer sues.

You may see this policy included as part of your products-completed operations coverage, which covers lawsuits over defective products and poor workmanship.

Advertising injuries

If you advertise, your retail business could be susceptible to advertising injury lawsuits. General liability insurance protects your shop when a competitor claims you copied a logo or caused reputational harm. It can help cover lawsuits related to:

  • Defamation, both libel (written) and slander (spoken)
  • Copyright infringement

 If you launch an advertising campaign in a magazine, social media, or other medium, it’s important to protect your small business with this policy.

How much does general liability insurance for retail stores cost?

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Most retail businesses pay a median of less than $45 per month for general liability insurance, but you could pay more or less depending on your risks.

Insurance costs for retail stores are based on a few factors, including:

  • Retail products and services offered
  • Business equipment and property
  • Revenue
  • Location
  • Number of employees

Other important policies for retailers

While general liability insurance covers many common risks, it does not provide complete protection. Employee injuries or damage to inventory can occur at any retail business. Other policies for retailers to consider include:

Business owner’s policy: This policy bundles general liability insurance with commercial property insurance, usually at a lower rate than if the policies were purchased separately.

Workers’ compensation insurance: Workers' comp is required in almost every state for stores that have employees. It covers medical costs for workplace injuries.

Cyber liability insurance: This policy is crucial for retailers who handle credit cards or conduct business online. It helps cover the cost of a data breach or cyberattack.

Liquor liability insurance: If your shop sells alcohol, you likely need this policy to comply with your state's dram shop laws and protect against lawsuits.

Commercial umbrella insurance: Similar to excess liability insurance, this policy boosts coverage on a retailer’s general liability, commercial auto, and employer’s liability insurance once the limit is reached.

Commercial auto insurance: State laws usually require this coverage for business-owned vehicles. It helps cover costs if your retail shop's delivery truck or other vehicle gets into an accident.

Get free quotes and buy online with Insureon

Are you ready to safeguard your retail store with general liability insurance? Complete Insureon’s easy online application today. Once you find the right policy, you can begin coverage in less than 24 hours.

Updated: July 5, 2023
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