Hardware and Home Improvement Store Insurance
Why do hardware stores need insurance?
If a tool injures someone or damages their property, your shop could be held accountable. Business insurance covers legal costs brought by customers and employees. It can also pay for storm damage, data breaches, and theft.
Find affordable insurance
With Insureon, hardware 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 type of insurance is recommended for a hardware store?
These insurance policies cover the most common risks faced by hardware and home improvement stores.
Business owner's policy
A business owner's policy, or BOP, is a cost-effective way for owners of hardware stores to buy general liability insurance and commercial property coverage together.
- Injuries caused by products
- Damaged or destroyed inventory
- Business interruption coverage
General liability insurance
A general liability policy covers third-party lawsuits from injuries and property damage. For example, a customer could sue if they're injured by a sharp tool in your shop.
- Customer bodily injuries
- Product liability claims
- Libel and other advertising injuries
Workers’ compensation insurance
Most states require workers' comp as soon as a hardware 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 work-related injuries
Cyber insurance
This policy helps hardware stores recover financially from data breaches and cyberattacks. It’s sometimes referred to as cyber liability insurance or cybersecurity insurance.
- Customer notification expenses
- Fraud monitoring services
- Cyber extortion demands
Commercial umbrella insurance
Umbrella insurance boosts coverage on a hardware 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 legal defense costs if your hardware store's delivery van or other vehicle gets into an accident. 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 insurance cost for a hardware store?
A small home improvement shop with only a few employees won't have to pay a lot for business insurance.
Factors that affect the cost of hardware store insurance include:
- Products you sell, such as appliances or plumbing supplies
- Services you offer, such as carpet cleaning or lighting installation
- Whether you have a brick-and-mortar business or an e-commerce business
- Business operations and income
- Business location
- Policy limits, deductibles, and exclusions
- Coverage options, including any additional insureds
- Claims history
How do I get hardware store insurance?
It's easy to get hardware and home improvement store insurance if you have your company'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 agents work with top-rated U.S. carriers to find the right insurance coverage for your hardware store, whether you work independently or hire employees.
Verified business insurance reviews
Hear from customers like you who purchased small business insurance.
FAQs about business insurance for hardware stores
Review answers to frequently asked questions about insurance for hardware and home improvement businesses.
Do hardware stores need product liability insurance?
Many of the items sold at hardware and home improvement stores can be dangerous, which is why your business needs product liability insurance.
This policy covers a wide range of product lawsuits, such as:
- A faulty tool that breaks and injures a customer
- Lack of warning labels or disclaimers on products
- Insufficient safety guards on a product
- A power tool that overheats and causes a fire
Product liability insurance covers legal costs when a product sold at your store causes a bodily injury or damages someone's property. Because tool-related mishaps are fairly common, this is one of the most important policies for hardware stores and other stores that cater to home improvement contractors.
If a customer sues your shop because they cut themselves on a faulty saw, 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 commercial general liability insurance or a business owner's policy it usually includes product liability coverage. It's sometimes also called products-completed operations insurance.
Does home improvement store insurance protect against theft?
Yes, you can buy insurance that provides financial reimbursement for theft at your hardware store. These types of business insurance protect against burglaries and similar incidents:
- Commercial property insurance covers theft of power tools and other items from your store, along with vandalism, fires, storms, and other events that damage or destroy business property. You can save money by bundling it with general liability insurance in a business owner's policy.
- Commercial crime insurance protects against losses related to employee dishonesty, such as cash register theft or check fraud. 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 steps they recommend.
What other types of insurance policies should hardware shops carry?
Hardware store businesses should consider several other types of insurance as part of their risk management plan. That includes:
- Business income insurance: This policy covers employee wages, 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 also called business interruption insurance.
- Equipment breakdown insurance: If a key duplicator, point of sale device, or other piece of equipment fails unexpectedly, this policy can help pay to repair or replace it.
- Electronic data processing insurance: This policy protects against financial losses related to data loss on computers, backup drives, operating systems, network storage servers, and other eligible devices.
- Inland marine insurance: Because commercial property insurance only covers items at your business address, you may need inland marine insurance to protect shipments of tools, fixtures, and other products while they are in transit or stored off-site.
- Product recall insurance: Hardware stores can face significant losses when a product is recalled. This policy helps cover the cost of removing defective products, along with related PR efforts.
If you have questions or need help finding the right insurance solutions for your risks, chat with a licensed agent today.