Why do luggage stores need insurance?
If a suitcase breaks open and damages a customer’s belongings, the result could be a lawsuit. Business insurance helps cover costs if a customer sues your business. It provides peace of mind and financial protection in the event of a fire, data breach, burglary, or auto accident.
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With Insureon, owners of small luggage stores can get insurance coverage the same day they apply for quotes.
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What type of insurance is recommended for a luggage store?
These insurance policies cover the most common risks at luggage stores.
Business owner's policy
A business owner's policy, or BOP, is a cost-effective way for owners of luggage stores to buy general liability coverage and commercial property coverage together.
- Injuries caused by suitcases and other products
- Damaged luggage or other 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 corner on a carry-on suitcase.
- Customer bodily injuries
- Product liability claims
- Libel and other advertising injuries
Workers’ compensation insurance
Most states require workers' comp as soon as a luggage business hires its first employee. It also protects sole proprietors from work-related medical bills that health insurance might deny.
- Employee medical expenses
- Partial lost wages while disabled
- Lawsuits from work-related injuries
Cyber insurance
This policy helps travel stores recover financially from data breaches and cyberattacks. It’s recommended for any business that handles credit cards or other customer data.
- Customer notification expenses
- Fraud monitoring services
- Cyber extortion demands
Commercial umbrella insurance
Umbrella insurance boosts coverage on a luggage 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 luggage 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 retail stores?
A luggage store with only a few employees won't have to pay a lot for business insurance.
Factors that affect the cost of luggage store insurance include:
- Products you sell, such as suitcases, backpacks, or leather goods
- Services you offer, such as delivery or trip booking
- Whether you have a brick-and-mortar business or an e-commerce business
- Business location
- Business operations and income
- Coverage limits, deductibles, and exclusions
- Additional insureds and other coverage options
- Claims history
How do I get business insurance for a luggage store?
It's easy to get luggage store insurance if you have your company's information on hand. Our application will ask for basic facts about your shop, 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. insurance companies to find the right coverage for your business needs, whether you work independently or hire employees.
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FAQs about business insurance for luggage stores
Review answers to frequently asked questions about insurance for stores that sell suitcases, backpacks, and other supplies for travelers.
Do luggage stores need product liability insurance?
Product liability insurance is crucial for every retail store, including your luggage shop.
This policy covers a wide range of product lawsuits, such as:
- A suitcase that tips over and injures a child
- Luggage that breaks in transit, damaging the contents
- A sharp edge on hard shell luggage that causes an injury
- Damage caused by a broken spinner wheel
- Lack of warning labels on a piece of luggage
- Errors in instructions that cause an injury
Product liability insurance covers legal costs when a product sold at your store causes a bodily injury or damages someone's property. Because luggage is heavy and contains valuable items, this is one of the most important policies for your travel store.
If a customer is harmed by a faulty product or inadequate warnings, 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.
When you buy commercial general liability insurance or a business owner's policy, it usually includes product liability insurance. You might also see this coverage called products-completed operations insurance.
Does luggage store insurance protect against theft?
Yes, you can buy business insurance that protects against losses from theft. These types of business insurance provide reimbursement in the event of a burglary or similar incident:
- Commercial property insurance covers theft of suitcases and other products 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 business property insurance.
Property claims cause your premium to go up, which is another reason it's best to prevent theft in the first place. Some 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 luggage stores carry?
Small business owners should consider several other types of coverage as part of a luggage store's risk management strategy. 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 unexpected event. It's also called business interruption insurance.
- Equipment breakdown insurance: If a point of sale device or other piece of business 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 suitcases and other products while they are in transit or stored off-site.
- Product recall insurance: Luggage 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.