Every year, thousands of tourists flock to Massachusetts to visit sites such as the Freedom Trail, Fenway Park, Martha’s Vineyard, and Cape Cod's beaches. Often, people like to bring a memento of their trip back with them and will stop in a local gift shop for souvenirs.
If you are among the many gift shop owners in this state, you have likely invested a lot of money in your business. You can protect your investment by purchasing a suitable gift shop insurance policy.
Independent insurance agents in Massachusetts can help you find great coverage at a competitive price. Contact an insurance agent near you to learn more.
What Could Go Wrong in a Gift Shop?
Expensive disasters don’t occur at gift shops very often, but they do happen. Consider how your business would handle the following scenarios financially if it were uninsured.
- Vandals break your gift shop windows, damage the interior, and steal several T-shirts and souvenirs.
- A product display comes loose from the wall and injures a customer.
- Heavy winds from a hurricane destroy thousands of dollars worth of merchandise.
- An employee who you had to let go for doing a bad job accuses you of wrongful termination and hires a lawyer who takes you to court.
- The building in which your gift shop is housed is severely damaged in a fire and you are unable to reopen for several weeks while repairs are made.
These are all hazards that a comprehensive gift shop insurance policy can cover against.
What Is Gift Shop Insurance?
Gift shop insurance is simply business insurance that has been customized to meet the specific coverage needs of gift shop owners.
Because you can supplement your coverage with several different types of commercial insurance products when appropriate, these policies can cover as must or a little as you need them to.
How Much Does Gift Shop Insurance Cost in Massachusetts?
In Massachusetts, gift shop insurance can cost as little as $25 a month for a small shop or several hundred dollars a month for a large store with lots of merchandise. Rates are typically calculated according to several different factors such as the following.
- The 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, merchandise, and décor
- Your gift shop’s expected annual revenues
- The number of workers you employ
- The coverage options you are including in your policy
- How long your shop has been in business, and its claims history
Every insurance company has its own way of calculating rates, so requesting customized quotes from a few competing providers can help you be sure that the policy you are purchasing is being offered at a reasonable price. Independent agents can do the comparison shopping for you.
Why Does My Location Impact My Gift Shop Insurance Rates?
Obviously, you will want your gift shop to be located near attractions in a place that is heavily trafficked by tourists. However, where your shop is located can factor into your insurance rates.
Insurance companies will assess how likely it is that you will need to file a claim for theft or weather-related damage. The higher the crime rate and severe weather risks where your shop is located, the higher your rates will be.
Gift shops close to the coast will have greater severe weather risks than those that are more inland, and gift shops in larger cities, like Boston, will generally be exposed to higher crime rates.
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What Does Gift Shop Insurance Cover?
Most gift shops are small or mid-sized businesses that qualify for coverage through a simple business owners policy (or “BOP”). Whether you have purchased a BOP or a traditional business insurance policy, you can expect to have the following coverage.
- Commercial general liability: This can cover your gift shop against some of the most common liability risks businesses face. It includes the following.
- Premises liability insurance: This covers third-party injuries that occur on your business property.
- Product liability insurance: This covers 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 errors.
- Commercial Property Insurance: This can cover your business-owned property if it is lost or damaged due to a covered event like a fire or windstorm.
- Business Interruption Insurance: This can provide a continuation of income if your gift shop must remain closed for repairs due to damage caused a covered event or if the attraction you are selling mementos for needs to 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 these options.
- Commercial flood insurance: Though hurricanes are covered by commercial property insurance, the floods that often accompany them are not. Your agent can help you obtain an affordable flood insurance policy through the NFIP.
- Cyber liability insurance: This can cover your liabilities and financial obligations if your computer system is hacked into or if criminals successfully install skimmer on your credit card readers.
- Employment practices liability insurance: This can provide coverage for your defense and damage if a current, past, or potential employee accuses your gift shop of illegal business practices such as harassment, discrimination, or retaliation.
- Workers’ compensation insurance: This can cover the cost of medical treatments and provide disability pay if your workers are injured on the job. This insurance is required of all employers in Massachusetts.
Independent insurance agents can help you evaluate the risks faced by your business, and can ensure that your gift shop insurance does not have any unintentional coverage gaps.
How an Independent Insurance Agent Can Help You Find the Best Gift Shop Insurance in Massachusetts
When you are looking for the best and most affordable insurance for your gift shop in Massachusetts, look no further than a local independent agent. These agents can save you time and money by shopping around to find all the coverage you need at the most competitive prices.
There are nearly 1,300 independent agents in Massachusetts so it should be easy to find one with an office near you. Set up an obligation-free consultation with an independent insurance agent to get started.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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