Why do general stores need insurance?
Selling a wide range of products is what makes your shop attractive, but every product brings risk. Business insurance covers legal costs if a customer sues over harm caused by a product. It can help your business bounce back from lawsuits, data breaches, injuries, and accidents.
Find affordable insurance
With Insureon, general 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 general stores need?
These insurance policies cover the most common risks at general stores.
Business owner's policy
A business owner's policy, or BOP, is a cost-effective way for owners of general stores and small department 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 lawsuits, such as a slip-and-fall injury in your shop. It typically includes product liability insurance for financial protection against harm caused by your products.
- Customer bodily injuries
- Product liability claims
- Social media lawsuits
Workers’ compensation insurance
Most states require workers' comp as soon as a general 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 general merchandise stores 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 general 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 general 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 general store with only a few employees won't have to pay a lot for business insurance.
Factors that affect your general store insurance cost include:
- Types of products you sell
- Business property and equipment
- Business income
- Business location
- Insurance products purchased
- Coverage limits and deductibles
- Any additional insureds
- Claims history
How do I get general merchandise store insurance?
It's easy to get business insurance for your general store or small department 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 general merchandise store, whether you work independently or hire employees.
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FAQs about business insurance for general stores
Review answers to frequently asked questions about insurance for general stores and small department stores.
Do general stores need product liability insurance?
Yes, every general store should carry product liability insurance. This policy covers legal costs when a product injures a customer or damages their property.
The wide range of products sold at a general store means a greater chance of a product lawsuit. For example, a child could choke on a small toy, or an electronic device 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 general store insurance protect against theft?
Yes, you can buy insurance that provides financial protection against theft, burglaries, vandalism, and other business property losses. 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 general 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 a forged signature. 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 general stores carry?
General 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, and other electronic devices.
If you have questions or need help finding the right coverage for your risks, chat with a licensed agent today.