Stores that sell carpeting, rugs and other floor coverings will always be in demand by homeowners. Carpeting, in particular, is often sought out by owners of houses that do not feature hardwood floors. As the housing market continues to grow and the desire to renovate older houses picks up, carpet and floor covering stores are slated to enjoy a steady marketplace demand. If you own a store that specializes in this type of home improvement merchandise, you will want to be sure to protect your investment with a carpet store insurance portfolio that has been built specifically to meet the coverage needs of your business. Contact a Trusted Choice® Independent Insurance Agent to learn more.
2015 Floor Covering Store Industry Facts from IBISWorld
- There are more than 19,500 floor covering store businesses operating in the United States.
- These stores employ nearly 70,000 people.
- The flooring store industry is responsible for about $19 billion in revenue each year.
Your Carpet Store Needs Sufficient Property Damage Coverage
The inventory you keep in your carpet store most likely makes up the bulk of your business assets. It is therefore very important that you cover your business property with sufficient levels of insurance that can adequately compensate you if a disaster, such as a fire, damages or destroys your property.
- Building insurance: If you own the building in which your carpet store is housed, you will want to be sure to cover it with building insurance. This coverage compensates your business for damage to the structure of the building that is caused by covered perils, such as falling objects, severe weather and fire.
- Contents insurance: This insurance covers the property you keep inside your store. This includes inventory, display units, lighting, decor, computer systems and more. You should ensure that your coverage limits are sufficient to fully cover your property against losses in the event of a disaster.
- Flood insurance: Flood damage can destroy your inventory of carpeting. Unfortunately, business insurance policies do not cover damage caused by floods. If your business is at risk, ask your independent insurance agent to help you supplement your policy with a commercial flood insurance policy through the National Flood Insurance Program (NFIP). You can purchase this insurance to cover your building, its contents or both.
- Inland marine insurance: This provides coverage for your tools and carpeting while your workers are in transit to and from installation sites. This is also a good idea if your workers store their tools in work vans overnight.
Carpet Store Insurance Portfolios Must Include Liability Coverage
Lawsuits can happen at any time, and they can be financially devastating to businesses. It is important that you protect your carpet store’s assets with the right liability coverage. Liability insurance can provide compensation for court costs, legal defense fees and financial damages so that lawsuits do not hurt your bottom line and you can focus on keeping your business profitable.
General liability insurance covers the most common liability problems faced by businesses in the retail sales industry. Some liability coverage options your independent insurance agent may recommend include the following:
- Premises liability insurance: This protects your business if a customer or other third-party is injured or suffers property damage while in your carpet store or on your stores premises.
- Product liability insurance: This protects your carpet store if a flooring product that you recommend or sell causes illness or injury to another.
- Operations liability insurance: This protects your business while your workers are doing installations on your customers' premises.
- Completed operations liability insurance: This protects your business if a poorly done carpet installation causes a hazardous situation that results in injury or property damage to others. This may include anything from exposed carpeting nails to loose or folded carpeting.
- Auto liability insurance: If your store provides delivery and installation services, you likely have a truck, van or fleet of vehicles for this purpose. These business-owned vehicles must be covered by a commercial auto insurance policy. If your business rents vehicles or allows employees to drive their personally owned vehicles for work-related purposes, your carpet store can be sued in the event of an accident unless your policy includes hired or nonowned vehicle insurance.
It is important to bear in mind that your general liability policy is likely to exclude damage caused to homeowners’ property in the process of moving furniture in order to install carpeting. If this is a serious concern to you, be sure to discuss this with your independent insurance agent, who can try to help you find an insurance company that would be willing to include this coverage.
What Other Carpet Store Insurance Policies Should You Consider?
In addition to advising you about coverage for your property and protection from liability, there are other insurance coverage types that your agent may recommend. These include the following:
- Business income insurance: This type of insurance provides your carpet store with continued income if you are forced to temporarily close shop due to damage caused by a covered event. This coverage is typically limited to 12 months.
- Workers' compensation insurance: There are a number of ways that your employees, particularly those who do carpet installations, may be injured on this job. This insurance, which is required in most states, provides coverage for medical treatment for these injuries and can even compensate for lost wages. It further helps by shielding your business from potential lawsuits related to these injuries.
- Employee dishonesty insurance: This insurance protects your business from resultant financial losses in the event that an employee steals from your business or engages in other illegal activities while on the job.
There are several different types of insurance policies that may be of interest to you as you build your carpet store insurance portfolio. An independent insurance agent can explain these coverage options to you in detail and can make recommendations about coverage types that may be beneficial to your business.
Get Help Building a Comprehensive Carpet Store Insurance Portfolio
The easiest way to be certain that your carpet store insurance portfolio is complete and well-suited to your particular store is by working with an independent agent in the Trusted Choice network. These knowledgeable agents are experienced at building business insurance portfolios for retail stores, and they can help to ensure that your various exposures are covered by the right kinds of policies. Because independent agents do not work for one particular insurance company, they are free to shop around to find you great policies at competitive rates. Find a Trusted Choice agent near you to learn more, and you can soon start comparing quotes and building a carpet store insurance portfolio that will protect your business interests.