Do you run a cabinet store? By carrying everything your customers and contractors need for building or upgrading cabinets, your business helps people store their belongings and beautify their homes. While you’re probably on top of managing your employees, keeping up your inventory, and ensuring that your day-to-day operations lead to success, one critical component of running a cabinet store needs to be in place — insurance.
Cabinet stores have a number of unique risk factors, such as employees who work as installers off-site, protecting your sales floor from liability issues due to injured customers, or managing your constantly changing inventory in several locations. That’s why you need business insurance coverage that is designed specifically for your small cabinet shop’s needs.
In this article, you will learn the ins and outs of cabinet store insurance:
- Risk Factors for Cabinet Stores
- What Types of Insurance Coverage Do I Need for a Cabinet Store?
- What Is the Cost of Insuring My Cabinet Store?
- Which Questions Should I Ask My Independent Insurance Agent About Cabinet Store Insurance?
Insuring a cabinet store can be a difficult process for those unfamiliar with the insurance industry and with what risk factors their business may have. That’s where an independent insurance agent can be indispensable, offering unbiased comparisons of all available insurance options, highlighting potential discounts, and explaining the fine print in easy-to-understand language.
Risk Factors for Cabinet Stores
Like many businesses open to the public, cabinet stores face their fair share of potential accidents or mishaps. These include:
- Natural disasters
Insurance companies use a number of parameters to determine how much premiums will cost and how much coverage they can provide. The following is a list of these factors:
- Size of premises
- Condition of the property
- Business hazards
- Payroll size
- Claims history
- Employment status of employees
- Number of employees
- Severity potential
Because most cabinet stores also offer installation services, your business is exposed to more liabilities operating off premises. Making sure that your employees are covered under, for example, workers' comp programs help reduce the number of lawsuits and claims filed against your cabinet store.
If your cabinet store has company vehicles or employees who use their own transportation on your behalf, you also open up your business to more risk factors. For example, picking up materials from a distributor can have your inventory damaged while in transit. Or a worker may accidentally run over a customers sprinkler system. Insurers compute risk by weighing the following factors:
- Driver demographics
- How and where you drive
- Type of driving and vehicle
- Driving record
If you’re unsure about which specific risk factors apply to your cabinet store, contact an independent insurance agent today. Independent insurance agents are able to assess your business and recommend coverage that protects it against lawsuits, accidents, mishaps, and more.
What Types of Insurance Coverage Do I Need for a Cabinet Store?
A cabinet store needs insurance coverage for every aspect of its operations. Commonly sold under a business owners policy (BOP), your cabinet store can get coverage that prevents significant financial liabilities should a covered event occur. Most BOPs provide the following coverages:
- Commercial property coverage
- General liability insurance
- Workers' compensation
- Commercial automobile insurance
Let’s take a look at an overview of these policies:
|Type of Coverage||Description of Coverage||Examples|
|Commercial property coverage||Property insurance in used situations where the business needs to be reimbursed following property damage or lost property. This policy covers the cost of replacing your business equipment or other property when lost/damaged by fire, theft, vandalism, or natural disasters. Property coverage may include equipment, Inventory, offices/premises, supplies, tools.||A pallet of inventory falls and damages the walls of your rented premises. Smoke damage from an electrical fire rendered your business uninhabitable and unable to handle customers until your showroom was rebuilt. A burglar broke into your premises and stole your networking equipment.|
|General liability insurance||General liability insurance protects your cabinet store from some of the most common liabilities. This coverage is particularly useful when you need to compensate third party lawsuits from third-party non-employees, such as a customers or contractors. General liability covers legal bills and settlements resulting from personal injury, damaged property, advertising injury, and reputational damage. Because your cabinet store may hire installers to work on other people's property, this type of insurance coverage may prove useful when damage or physical injury is caused to third parties.||A customer hurts themselves or damages their property while in your cabinet store or work yard and files a claim against you for medical bills. A competitor accuses your company of slander or libel and takes your cabinet store to court.|
|Workers' compensation||Workers' compensation insurance is mandatory in most states for any non-owner employees. It is a broad form of coverage that protects your cabinet store from any number of costs arising from the workplace. This coverage is important for claims, as lawsuits are generally avoided if injured workers file a claim through workers compensation. Workers compensation can pay for lawsuits, funeral costs, medical bills, and ongoing wages for injured or sick employees. Support payment for any dependents.||A worker tears a ligament while climbing a ladder. Your receptionist has to take time off for developing carpal tunnel syndrome (CTS) symptoms.|
|Commercial automobile insurance||A commercial automobile insurance policy can protect your cabinet store from losses that arise when car accidents happen. Commercial auto insurance can protect company vehicles such as your installation or delivery vans. It also protects personal or rental vehicles if you use them for company purposes.||Your delivery driver accidentally runs over a customer’s parked motorcycle.|
Umbrella insurance coverage enables policyholders to boost their coverage if they believe that coverage limits are low.
Most insurers offer umbrella insurance, which enhances the liability of existing insurance policies by paying a single premium. This coverage can cover such policies as:
- General liability insurance
- Professional liability
- Commercial auto insurance
What’s the value of an umbrella policy? Umbrella coverage pays for any lawsuits that exceed the current limits of your coverage, typically in increments of $1 million for covered events. This can be useful if, for example, you are being sued by multiple parties, such as workers and customers who were injured in a warehouse fire.
Additional Forms of Insurance for Cabinet Stores
The following is a list of some other coverages available for cabinet stores that you should discuss with an independent insurance agent:
- Business interruption insurance
- Equipment breakdown insurance
- Cyber liability insurance
- Employee dishonesty coverage
- Earthquake insurance
- Flood insurance
- Errors and omissions (E&O) insurance
- Product liability insurance
What Is the Cost of Insuring My Cabinet Store?
Cabinet stores don’t have a set premium rate for insurance policies. Instead, an insurance company will weigh the various risk factors of your cabinet store (see above). However, you can expect to pay yearly premiums that range as low as $300 to $3000, with the average cost being around $1,200 annually, or $100 per month.
How to Reduce the Cost of Insuring My Cabinet Store
There are a number of ways to reduce your insurance premiums for your cabinet store:
- Bundling coverage with other policies
- Reducing risk factors
- Filing fewer claims
- Providing adequate oversight and intensive training for staff and employees
Independent insurance agents can play a big part in reducing your premiums for ensuring a cabinet store. First, because an independent insurance agent isn’t linked directly to a single company, they have the ability to offer you cost-effective policies that aren’t one-size-fits-all. Second, you can discuss how to reduce your insurance premiums and exposures to risk, which can help you tailor a policy that your business deserves.
Which Questions Should I Ask My Independent Insurance Agent About Cabinet Store Insurance?
When contacting an independent insurance agent about cabinet material store insurance, be sure to ask the following questions to get a clearer picture of which policy is the best fit for your needs:
- How much coverage do I need?
- What types of coverage are available for my cabinet material store?
- Which optional coverages will I most likely need?
- Which optional coverages will I not need?
- How much do I have to pay in deductibles for each insurance coverage?
- How often are claims filed against cabinet material stores?
- What is the coverage for my inventory while it is in transit?
- Are there any discounts that my store qualifies for?
- In what ways can I reduce my premiums by making my cabinet store safer?
- Can I bundle any of my other insurance policies under one insurer?
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.
TrustedChoice.com Article | Reviewed by Paul Martin
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