Why do party supply stores need insurance?
If a customer is injured by a party popper or other product, you could be held liable for medical bills and legal expenses. Business insurance helps pay for lawsuits, fires, and accidents that could otherwise bankrupt your business. Some policies, like workers' compensation, may be required by law.
Find affordable insurance
With Insureon, party store owners can compare quotes from top-rated insurance carriers.
A licensed insurance agent will help make sure you get the right coverage at a price you can afford.
What types of insurance do party supply stores need?
These insurance policies cover the most common risks at party stores.
Business owner's policy
A business owner's policy, or BOP, is a cost-effective way for party store owners to buy general liability coverage and commercial property insurance together.
- Injuries caused by party supplies
- Damaged or destroyed inventory
- Business interruption coverage
General liability insurance
A general liability policy covers third-party lawsuits, such as slip-and-fall injuries. It typically includes product liability insurance for financial protection against harm caused by your products.
- Customer bodily injuries
- Product liability claims
- Lawsuits over social media posts
Workers’ compensation insurance
Most states require workers' comp for party supplies stores that have employees. It also protects sole proprietors from work-related injury costs that health insurance might deny.
- Employee medical expenses
- Disability benefits
- Lawsuits from injured workers
Cyber insurance
This policy helps party supply stores recover 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 party shop's general liability, employer’s liability, or commercial auto insurance policy once the limit is reached on a claim.
- Customer injury lawsuits
- Property damage lawsuits
- Auto accident lawsuits
Commercial auto insurance
This policy covers accidents involving a party store's delivery van or other vehicle. Each state has its own auto liability insurance requirements.
- 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 party store with only a few employees won't have to pay a lot for business insurance.
Factors that affect your party supply store insurance cost include:
- Type of business, such as party supply store or party rental business
- Business property and equipment
- Business income
- Business location
- Types of coverage purchased
- Coverage limits and deductibles
- Any additional insureds
- Claims history
How do I get party supply store insurance?
It's easy to get business insurance for your party 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 party supply store, whether you work independently or hire employees.
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FAQs about business insurance for party stores
Review answers to frequently asked questions about party shop insurance.
Do party supply stores need product liability insurance?
Yes, product liability insurance is a must-have for a party store. If a customer is harmed by a product sold at your shop, you could be held liable. That could mean thousands of dollars in legal fees, medical expenses, or repair bills.
Product liability coverage is usually included in general liability insurance. Every business in the supply chain should carry this coverage. That includes:
Though you may not think of your products as unsafe, they could still be involved in an accident. For instance, a piece of confetti could cause an eye injury, or a defective balloon could pop at a birthday party and cause someone to fall.
To avoid these kinds of claims, you can take steps to reduce your product liability risks, such as checking for defects in the products you sell. Claims are costly—and they can also make your insurance rates go up.
Does party supplies store insurance protect against theft?
Unfortunately, theft is a reality for every retailer. Commercial property insurance, included in a business owner's policy, covers financial losses in the event of shoplifting or a burglary at your shop.
To protect against dishonest employees, you should also consider commercial crime insurance. This policy covers costs if an employee forges your signature or steals from the cash register. You can typically add it to your property policy or BOP.
Security systems and cameras can go a long way toward preventing theft. Some insurance companies also offer a reduced premium when you install an approved security system or take other measures that qualify.
What other types of insurance policies should party stores consider?
Party 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.
- 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 options for your risks, chat with a licensed agent.