Every year, thousands of tourists flock to Arizona to visit sites such as the Grand Canyon, the Petrified Forest, and the Desert Botanical Garden. Often, people like to bring a memento of their trip back with them and will stop in a local gift shop.
If you are among the many gift shop owners in Arizona, you have likely invested a lot in your business. You can protect that investment with a suitable gift shop insurance policy. Independent insurance agents can help you find great coverage at a competitive price. Contact an insurance agent near you to learn more.
What Could Go Wrong at a Gift Shop?
Major disasters at gift shops are not commonplace, but they do happen. Consider how your business would handle expenses if the following incidents happened.
- Your gift shop is broken into overnight and lots of inventory and some cash was stolen.
- A customer in your gift shop slipped on a wet floor and suffered a serious back injury.
- A major storm blew through town breaking the front window of your shop and destroying thousands of dollars worth of inventory.
- An employee that you had to fire claims wrongful termination and hires a lawyer who takes you to court.
- The building where your gift shop is severely damaged in a fire and you are unable to reopen for business for several weeks.
These are all hazards that a good gift shop insurance policy can protect you against.
What Is Gift Shop Insurance?
Local independent insurance agents can help you review your gift shop’s coverage needs to ensure that the coverage you purchase is appropriate and comprehensive.
How Much Does Gift Shop Insurance Cost in Arizona?
The cost insurance for your gift shop can range from as little as $25 a month to several hundred dollars a month depending on several different factors such as the following.
- The size and location of your gift shop
- Whether you own or rent the space where your shop is located
- The value of your gift-shop’s assets, including inventory and décor
- Your gift shop’s expected annual revenues
- The number of workers you employ
- The coverage options you are including in your policy
- The amount of your deductible
Every insurance company has its own way of assessing risk and calculating rates, so requesting customized quotes from a few competing providers can help you be sure that the policy you purchase is offered at a reasonable price.
Independent insurance agents make comparison shopping easy by doing the legwork for you.
Why Does My Location Impact My Gift Shop Insurance Rates?
Obviously, the location of your gift shop isn’t flexible. You will want it to be located close by attractions in a place that is heavily trafficked by tourists. However, where your shop is located does factor into your insurance rates.
Insurance companies will look at the crime rate and weather risks where your shop is located to assess how likely it is that you will need to file a claim for theft or weather-related damage. The higher the risk, the higher your rates will be.
You can help to keep your costs affordable by mitigating some of the risks. For instance, you can install security cameras or invest in storm windows to help secure your property. Doing so can often result in discounts on your coverage.
Talk to an independent agent to learn more about how the location of your gift shop can impact your insurance rates.
What Does Gift Shop Insurance Cover?
Most gift shops are small businesses that qualify for a simple business owners policy or BOP. Whether you have purchased a BOP or a business insurance policy, you can expect to have the following coverage.
- Commercial general liability (CGL): This is designed to cover your gift shop against some of the most common liability risks businesses face. Its coverage includes, but is not limited to the following.
- Premises liability insurance: This covers against third-party injuries that occur on your business property.
- Product liability insurance: This covers against third-party injuries or illnesses caused by products your gift shop sells.
- Advertising liability insurance: This covers against accusations of copyright infringement, deceptive pricing, and other marketing mishaps.
- Commercial property insurance: This covers your business-owned property including shelving, computers, inventory, supplies, outdoor signs, and more if it is lost or damaged by a covered event like a severe storm or a fire.
- Business interruption insurance: This provides a continuation of income if your gift shop must remain closed for repairs due to a covered event, or if the attraction you are selling mementos for must close down for an extended time.
In addition to the coverage mentioned above, you may want to consider purchasing additional supplemental policies. For instance, your insurance agent may recommend looking into the following.
- Commercial flood insurance: Some parts of Arizona are particularly prone to flood damage during the monsoon season. However, flood damage is not covered by your commercial property insurance. To cover business property that may be lost or damaged due to a flood, you will need a flood insurance policy.
- Cyber liability insurance: This can provide coverage if hackers successfully install a skimmer on your credit card readers or manage to steal sensitive data you keep about your customers. It can cover your liabilities including restitution and credit monitoring services for affected individuals.
- Key person life insurance: If you opened your gift shop with another person, you may find yourself in a tough financial situation if that person should unexpectedly pass away. That is why it is a good idea for you and your business partner to protect each other’s interested by investing in key person life insurance.
- Employment practices liability insurance: This is a good idea for any business that has employees. It can provide coverage if a current, past, or potential employee accuses your gift shop of engaging in illegal business practices such as harassment, discrimination, or wrongful termination.
- Workers’ compensation insurance: If your gift shop has employees, you are required by law to cover them with workers’ compensation insurance. This insurance is designed to provide coverage for medical treatment and disability pay if your workers are injured on the job.
Let a local independent insurance agent help you evaluate the risks faced by your business so that you can be sure that your gift shop insurance does not include any unintentional coverage gaps.
How an Independent Insurance Agent Can Help You Find the Best Gift Shop Insurance in Arizona
If you are looking for the best and most affordable insurance for your gift shop in Arizona, look no further than a local independent agent. These agents are available to answer your insurance-related questions and can save you time and money by shopping around for great coverage at a competitive price.
There are more than 400 independent agents in Arizona, so it should be easy to find one with an office near you. TrustedChoice.com makes it easy to find local, reliable, and experienced insurance professionals. Contact an insurance agent near you to get started.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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