There’s no place like home. And there’s no place like a home store that helps consumers outfit their homes in luxury and utility. And while big-box retailers try to corner the market for cheap goods, your store specializes in quality goods that bring class and luxury to outfit the homes of your discerning clientele.
However, some scenarios involve incidents that could potentially jeopardize your entire venture:
- A customer injures themselves in your store and files a claim against your store.
- A pipe bursts, causing flood damage to your rented premises.
- Thieves break into your store and steal thousands of dollars in merchandise.
- Your inventory is damaged while in transit.
For all of these reasons and more, your bathroom store needs a small business insurance policy that covers all of your bases.
Bear in mind that adequately insuring your business takes an in-depth knowledge of all the possibilities when it comes protecting your home store and ensuring success in the future. While you may want to choose the cheapest policy, it can be hard for those not familiar with the complex insurance industry, especially when considering policy coverages, limits, and more.
That’s why independent insurance agents are able to provide unbiased expert guidance to decipher each company’s fine print. These agents can explain the complexities of each policy in an easy-to-understand manner while accurately pairing you with a policy that meets your unique needs.
What Types of Insurance Do I Need for My Home and Bath Store?
When one thinks of danger, a retail home goods store isn’t the first thing to come to mind.
While this is a fair assumption, the truth is that we live in litigious times. Even a relatively minor mishap can result in claim being filed against your home and bath store. Considering that the average cost of a claim settlement is $15,000, you don't want to incur an avoidable loss by having insurance policies in effect to protect your business.
Essentially, there are three major types of insurance that you’ll need to have to run your home and bath store optimally:
Commercial Property Insurance for Your Home and Bath Store
Whether you own the property of your home and bath store outright or you’re renting/leasing a storefront, property insurance is an absolute must. Sold as a catch-all policy, property insurance helps cover repairs or replacement due to any damage that may affect your home and bath store’s location and assets, including:
- Business equipment
- Exterior signage
- Fencing and landscaping
- Important documents
- Others’ property on-site
Common forms of damage or loss that are covered by commercial property insurance include:
- Damage from fire, smoke, and storms
- Theft and vandalism
- Work stoppage
Who Needs Commercial Property Insurance?
If you’re a home and bath store owner that also owns your building, commercial property insurance is an obvious choice, even though it is optional. For those home and bath store owners who own property used for business such as computers, stock and inventory that is stored on-premises, equipment, and more, commercial property insurance is optional but strongly recommended by most insurance professionals.
There is one scenario where commercial property insurance is absolutely mandatory. If you’re renting or leasing a space from a third party for your home and bath store, your contract may require you to have coverage in place in order to finalize a lease. The reason for this is that should an incident occur and cause substantial damage, the tenant is responsible for replacing damaged property within the terms of the insurance policy. Further, this coverage may not be completely sufficient, so having your own property insurance for your home and bath store is a smart decision to protect the longevity of your business.
If you’re on the fence about the cost of and need for property insurance, consult an independent insurance agent today to get a clear picture of the risk your home and bath store may be susceptible to.
Liability Insurance for Your Home and Bath Store
While it isn’t mandatory to do business as a home and bath store with liability insurance, it should be. Considering that the average liability claim is around $15,000, having a comprehensive policy in effect safeguards your home and bath store business from medical bills, replacement costs, and property damage on your premises.
Essentially, liability insurance policies provide protection against serious financial consequences if you, your employees, your products, or your services cause bodily injury or property damage to a third party.
A box of inventory falling from a shelf onto a customer’s head can result in a liability claim. Or an HVAC unit that malfunctions overnight, burning down part of the storefront, can lead to catastrophic legal penalties. Having liability insurance in place beforehand enables your home and bath store business to avoid a costly legal battle and financial damages.
Because of the wide variety of home and bath stores and clientele, consulting an independent insurance agent can help break down just the home liability coverage you need.
Workers’ Compensation Insurance for Your Home and Bath Store
If a worker is injured on your premises, do they file a lawsuit? Workers' compensation insurance ensures that if an employee is injured while working at your home and bath store or comes down with an employment-related illness, they can receive:
- Wage replacement
- Medical equipment and treatment for their injury or illness
- Physical therapy
- And other benefits
With workers’ compensation insurance, you’re able to provide compensation through an insurance company instead of your home and bath store’s profits. Almost 70% of workers’ compensation claims result in a payout ranging from $2,000 to $40,000. Therefore, having worker’s compensation insurance just makes financial sense. Without this insurance, you’ll have to go through a costly legal process to prove that a worker didn’t receive their injuries in your home and bath store.
And while you may be considering whether this insurance is worthwhile for your home and bath store, you should know that most states require employers to offer workers’ compensation if they employ two or more W2 employees. Penalties for non-compliance can end up costing significantly more than monthly premiums, so your home and bath store should have a policy in place. Furthermore, keeping a workers’ compensation policy in effect helps get your employees back to work and keep afloat financially until they recover.
Business Owners Policy
Now that you understand the most basic forms of insurance that you’ll need to insure the employees, inventory, and operations of your home and bath store, you should know that there’s an easy way to combine all of these policies and more into one policy.
The answer? A business owners policy (BOP).
A BOP consolidates the three main forms of insurance in one policy, as well as offering the ability to augment coverage as you see fit. You may want to add earthquake coverage if you’re in an area that regularly has seismic activity. For those with an extensive computer network, you may want to supplement your BOP with a cyber liability policy.
There are a number of advantages to a BOP vs. cherry-picking insurance policies from multiple providers, such as discounted premiums and ease of payment. Ask your independent insurance agent to help you compare insurers and policies that fit your unique home and bath store.
Additional Insurance Coverages to Consider
So far, you've learned about the basics of insuring your home and bath store, from inventory to operations. However, no two businesses are alike, so they have different insurance needs. That’s why insurance companies offer a wide variety of coverages for nearly every aspect of your business:
- Umbrella insurance
- Commercial automobile insurance
- Earthquake insurance
- Flood insurance
- Equipment breakdown insurance
- Debris removal insurance
- Builders risk insurance
- Inland marine insurance
- Business interruption insurance
- Errors and omissions (E&O) insurance
- Cyber liability insurance
To learn more, speak with an independent insurance agent. These agents can help answer your questions about specific types of insurance, such as whether your home and bath store is at risk for earthquakes and floods in your area. They can also compare policies between insurers - something that can be a hassle for those who aren’t experienced with how policies work in real-world scenarios.
The Cost of Insuring Your Business
So how much does commercial property insurance cost? The answer largely depends on a number of factors related to your home and bath store, but the national average hovers around $1,100 annually for home and bath stores of moderate size.
Here’s a quick list of the factors that influence the cost of insuring your home and bath store:
- The value of all of your business assets, including inventory and equipment
- The property value
- Payroll of employees
- Number of staff
- Previous claims history
- Rate of crime in your area
- Likelihood of storms and other natural disasters
- Proximity to emergency services, such as a fire station
- And more
NAICS Code for Home and Bath Store Insurance Costs
And if you’re wondering whether insurance underwriters are pulling figures out of thin air, think again. Due to the large number of industries in the United States and various risk factors associated with business types, businesses are organized by industry by the North American Industry Classification System (NAICS). Businesses are assigned codes to determine premium rates and calculate risk, while also assessing the viability of business loans and taxation concerns.
A business may often have a primary NAICS code, the code that best fits your business. For a home and bath store, this code is 44, which stands for ‘Retail Trade.’ A secondary code is included to further distinguish your business. for a home and bath store, this is 2299, leading to the full designation of 442299, ‘All Other Home Furnishings Stores.’
If you don’t know what your company’s NAICS codes are, speaking with an independent insurance agent can help you determine which NAICS code your home and bath shop is classified under.
If you’re ready to take action and secure the future of your home and bath store, contact an independent insurance agent. Experienced with industry-specific know-how, independent agents can evaluate the potential risk your home and bath store faces, explain the fine print in easy-to-understand terms, and provide comparisons of multiple insurers to find the right fit for your business.
Benefits of an Independent Insurance Agent
Independent insurance agents have access to multiple insurance companies, ultimately finding you the best coverage, accessibility and competitive pricing while working for you. Find an independent insurance agent in your community here.