Why do toy stores need insurance?
If a child is injured in your toy store, the result could be a costly lawsuit. Business insurance helps pay for legal fees after an accident. It can also cover damaged inventory, data breaches, and harm caused by defective products.
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With Insureon, toy store owners can get insurance coverage the same day they request quotes.
Fill out our easy online application to compare quotes from top-rated providers.
What types of insurance do toy stores need?
These insurance policies cover the most common risks at toy stores.
Business owner's policy
A business owner's policy, or BOP, is a cost-effective way for toy store owners to buy general liability coverage and commercial property insurance together.
- Customer bodily injuries
- Damaged or stolen inventory
- Business interruption insurance
General liability insurance
A general liability insurance policy covers common third-party risks, such as a child who suffers an injury in your toy store. It's often required for a commercial lease or business loan.
- Customer slip-and-fall accidents
- Damaged customer property
- Product liability insurance
Workers’ compensation insurance
Most states require workers' comp for toy retailers that have employees. It also protects sole proprietors from work-related medical bills that health insurance might deny.
- Employee medical expenses
- Disability benefits
- Legal costs from workplace injuries
Cyber insurance
This policy helps toy stores recover financially from data breaches and cyberattacks. It's recommended for any business that handles personal information.
- Customer notification expenses
- Fraud monitoring services
- Cyber extortion demands
Commercial umbrella insurance
Commercial umbrella insurance boosts coverage on your toy shop's general liability, employer’s liability, or commercial auto insurance once the policy limit is reached.
- Bodily injury lawsuits
- Property damage lawsuits
- Auto accident lawsuits
Commercial auto insurance
This policy covers accidents involving your toy store's delivery truck or other vehicle. Most states require this coverage for vehicles owned by a business.
- Damage to another vehicle
- Injuries caused to another person
- Vehicle theft and vandalism
How much does business insurance cost for retail stores?
A small toy store with only a few employees won't have to pay a lot for business insurance.
Factors that affect your toy store insurance cost include:
- Products you sell, such as toys, candy, or art and hobby supplies
- Value of your business property
- Business income
- Business location
- Number of employees
- Types of coverage purchased
- Policy limits and deductibles
- Claims history
How do I get toy store insurance?
It's easy to get business insurance for your toy store 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 a policy.
- 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 toy store, whether you work independently or hire employees.
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FAQs about toy and game store insurance
Review answers to frequently asked questions about toy store insurance.
Do toy stores need product liability insurance?
Yes, product liability insurance is a crucial policy for your toy store. It's typically included in general liability insurance.
Toy-related injuries are fairly common for children, which is why it's important to carry this coverage. For example, a scooter might break while a child is riding it, or a child might choke on a small part in a building set.
If a child is injured by a defective product, or if a product damages someone's property, your business could be held liable. That's true even if your business wasn't responsible for the defect, but only sold the item. The result could be hundreds of thousands of dollars in legal fees or an expensive settlement.
There are several types of product liability claims, including:
- Design defects
- Manufacturing defects
- Lack of warnings
Fortunately, it's possible to reduce the risk of a product liability claim. Examine the toys and other products in your store carefully to make sure there aren't any defects. Claims are costly—and they can also cause your premiums to go up.
Does toy store insurance protect against theft?
Yes, you can insure your toy store against theft and other property losses. A couple of insurance policies help you do this:
- Commercial property insurance, included in a business owner's policy, covers burglaries and theft. It also covers fires, storms, burst pipes, and similar incidents that damage or destroy your business property.
- Commercial crime insurance guards against dishonest employees. This policy cover costs if an employee forges your signature or makes off with a valuable item. You can typically add it to your property policy or BOP.
Some insurance companies offer a discount on your premium if you take steps to prevent theft. For example, your insurer might lower their rate if you install a specific security system or follow other recommendations.
What other types of insurance should toy and game store owners consider?
Toy sellers should consider the following business insurance policies, in addition to those mentioned above:
- Business income insurance helps cover rent, lost profits, and day-to-day expenses when your toy store is forced to close because of damage from a fire, storm, or other covered property claim. It's also 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 for your risks, chat with a licensed agent.