One of the top industry sectors in Arizona, retail stores are responsible for more than $84 billion in sales per year in this state. That’s nearly $13,000 in sales per capita. As an owner of a retail store, you can help your business remain profitable by protecting it against financial losses with the right insurance policies.
Independent insurance agents in Arizona can answer your insurance-related questions and can help you find reliable, yet affordable, retail store insurance to cover your business. Contact an insurance agent near you to learn more.
What Could Go Wrong at an Arizona Retail Store?
If you own a retail store in Arizona, there are a number of potential hazards that can cause your business to experience large financial losses. Consider how your store would handle the following scenarios if it did not have insurance:
- Your store is broken into overnight, and several thousand dollars worth of merchandise is stolen.
- One of your employees causes a collision while making a delivery.
- A fire breaks out in your back storeroom, destroying a large amount of inventory. What isn’t damaged by flames smells like smoke and must be discarded.
- A customer slips on a wet floor while shopping in your store and suffers a significant back injury.
- Someone that you had to let go files a wrongful termination suit against your store.
These are just some of the many situations where having the right insurance products in place can protect your business from loss so that it can remain profitable.
What Is Retail Store Insurance?
There is no such thing as a retail store insurance policy. Rather, retail store insurance is a general term used to describe a business owners policy (BOP) or a business insurance policy package that has been specifically customized to meet the coverage needs of retail store establishments.
A local independent insurance agent can help you put together a comprehensive coverage portfolio so that you can rest assured that your business is fully covered.
How Much Does Retail Store Insurance Cost in Arizona?
The cost of retail store insurance can vary significantly from one store to the next based on several different considerations. A convenience store that is open 24 hours is more likely to be robbed or experience shoplifting than an appliance store that is open for limited hours of the a day.
In general, retail stores with low risks and little inventory may pay about $500 a year for coverage, while mid-sized stores with a lot of valuable assets may spend as much as $2,000 a year.
Some of the many factors that can influence your rates to include:
- The size of your store and its expected annual revenues.
- The value of your business assets including merchandise and inventory
- The number of people you employ.
- Whether your store offers delivery services.
- The crime rate and weather risks in the ZIP code where your store is located.
- The types and amounts of coverage you want to buy.
- How long your store has been in business and its claims history.
- The size of your deductible.
The only way to find out how much a policy will cost for your particular retail store is by contacting a few competing insurance companies and requesting customized quotes. Independent insurance agents can save you time and money by doing the comparison shopping on your behalf.
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What Does Retail Store Insurance Cover?
Your Arizona retail store insurance can cover as much or as little as you want it to. This is because you can fully customize a policy package to only include the coverage you feel is necessary.
A local independent agent can explain your various options and can make recommendations that are appropriate for your particular store. Some of the coverage your agent may want to discuss with you includes:
- Commercial property insurance: This is designed to cover damage to your business-owned property if it is lost or damaged due to a covered event like a fire, severe weather event, or property crime like theft or vandalism.
- Building coverage: This is necessary only if your business owns the building in which your store is located. Otherwise, it is the responsibility of the property owner. This can cover the cost to repair or rebuild if the structure of the building is damaged by a covered event.
- Contents coverage: This covers all of the business-owned property you keep at your store such as cash registers, shelving, merchandise, inventory, display cases, lighting, and outdoor signs.
- General liability insurance: This is a standard part of any BOP or business insurance policy. It can cover your retail store against many of the most common liability risks businesses face. Its coverage includes:
- Premises liability insurance: This covers against third-party injuries that occur on your business premises.
- Product liability insurance: This covers against third-party injuries caused by products your store sells.
- Advertising liability insurance: This covers against accusations of copyright infringement, deceptive pricing, false advertising, and other marketing errors.
- Business interruption insurance: This is designed to provide your retail store with a continuation of income if it must remain closed for an extended period due to damage caused by a covered event.
- Employment practices liability insurance (EPLI): Any business that hires workers is at risk of being accused by current, former, or potential employees of engaging in illegal employment practices such as wrongful termination, discrimination, harassment, or breach of contract. Whether or not these accusations hold merit, defending your business can get costly if your retail store insurance does not include EPLI.
- Workers’ compensation insurance: This is required of all employers in Arizona. It can shield your business from potential liability lawsuits by covering the cost to treat any injuries your employees may experience on the job as well as by providing injured workers with paid time off while they recuperate.
- Flood insurance: During monsoon season, many stores in Arizona are at risk for property damage due to flash flooding. However, flood damage is excluded from your commercial property insurance coverage. The good news is that your local insurance agent can help you obtain an affordable flood insurance policy through the National Flood Insurance Program (NFIP).
- Fidelity bonds: This is a type of employee dishonesty insurance. They can provide coverage if people who work for you steal from your business or commit other illegal or dishonest acts.
These are just some of the many types of insurance that are available for you to include in your retail store insurance policy package. A local independent agent can help you determine whether these or any other policies are appropriate for your particular store.
How an Independent Insurance Agent in Arizona Can Help You Find the Best Retail Store Coverage
Buying insurance for your retail store can get complicated. When you shop on your own, it is easy to accidentally have coverage gaps or to pay for coverage you don’t really need.
Local independent agents understand this. These experience insurance professionals are ready to answer your questions, explain your options, and help you find great coverage at a competitive price.
There are more than 400 independent insurance agents with offices in Arizona. Set up a one-on-one consultation with an insurance agent near you to get started.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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