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Many people dream of one day owning a store, and for those who’ve succeeded in this endeavor, it’s become a way of life. With this new business venture, these store owners need to invest in ways to safeguard all they’ve accomplished. Investing in protection against the devastating financial impacts of situations like injuries to employees or guests, property damage, lawsuits, or sudden loss of business income is vital to ensuring that your livelihood remains intact. Here's a look at three must-have insurance policies for retail businesses. 

1. Worker's Compensation for Retail Businesses 

This type of insurance covers the medical expenses and lost wages of employees injured while working in the retail store. Investing in worker's compensation provides immunity to most liability related to employee injuries, but some exceptions vary by state. In instances where you are not protected from liability, the employer’s liability section of worker's compensation insurance may cover the defense costs if your business is sued. This is a critical policy to protect your business and ensure your staff members are well taken care of.

2. Commercial Auto Insurance 

It can be easy to overlook commercial auto insurance for retail business owners, but if you or your staff perform any business-related driving, such as making deliveries or attending sales meetings, it’s a vital policy to have. This policy protects your business’ vehicles from losses relating to physical damage and your company from liability associated with property damage, bodily injury, and personal injury in the event of an accident. For instance, if your employee is delivering an online order to a customer and runs a stop sign, thereby hitting another car, commercial auto insurance coverage will kick in to help. 

3. A Retail Business Owners Policy

Home decor retail storeA business owners policy is the most common type of business-related insurance and is a great option for any retail company. This policy offers various protections, such as general liability, personal injury, property damage, and more. Coverages can be tailored to suit the needs of your brick-and-mortar or online store, but these are some of the broad protections included in this policy: 

  • Commercial Property: This coverage will protect your storefront and other retail assets from covered entities such as fire, severe storms, theft, and vandalism. 
  • Product Liability: Your customers can be harmed by how your products are manufactured, marketed, designed, or used incorrectly. In such cases, this coverage will help cover the costs of the fallout, including lawsuits or medical expenses.
  • General Liability: General liability insurance will protect your business from legal liability when it comes to lawsuits associated with bodily injury claims, medical expenses, property damage, or personal or advertising injuries such as libel or slander.
  • Employment Practices: If an employee or third-party claims discrimination, harassment, wrongful termination, or other damaging acts for which you would be considered liable, employment practices coverage will cover your defense costs. 

Contact your insurance agent to discover what other coverages your business owner's insurance can offer your retail business. 

These must-have insurance policies for retail businesses can help you keep your doors open and your finances protected in the event of a disaster or setback. As a retail business owner, you want to ensure your investment is protected against whatever's thrown your way. World Insurance agents can help you obtain the best protections, making sure your store is well looked after.



This article is not intended to be exhaustive, nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.

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