Are you in the business of selling ceiling fans to the public? If so, you’re probably aware of what your customers want, keeping your employees productive, and maintaining your day-to-day business.
However, one aspect of running a ceiling fan shop is to understand how insurance affects all of these areas of your business. Not uncommonly, insurance tends to be an afterthought when it should be a primary concern. So this leads to the idea: How do I insure my ceiling fan shop?
In this article, you will learn the basics about insuring a ceiling fan store:
- Which Ceiling Fan Stores Need Insurance?
- What Types of Insurance Are Available for Ceiling Fan Stores?
- Ways to Reduce the Cost of Ceiling Fan Store Insurance
Before we begin, you should know that an independent insurance agent can help you get the answers you need and the best insurance policy for your ceiling fan shop. Whether you’re a mom-and-pop shop or a franchise owner, an independent insurance agent can assess your unique situation and make running your ceiling shop a breeze.
Which Ceiling Fan Stores Need Insurance?
The short answer is that every ceiling fan store needs some insurance coverage. Because we live in a litigious society, lawsuits are more common for small businesses and large businesses alike. Also, due to the likelihood of accidents and natural disasters, having insurance enables your ceiling fan store to:
- Replace lost inventory
- Cover medical bills for injured workers and customers
- Pay for legal fees and settlements resulting from claims
- Protect your company’s assets, such as vehicles and equipment
- And more
Of course, insurance isn’t mandatory but it may be required as part of your rental agreement with your landlord. Or, if you own the property where your ceiling fan store is located, then a mortgage lender may impose insurance coverage on you to protect their investment.
To find out about your insurance obligations and more, consult an independent insurance agent. Independent insurance agents are able to determine the scope of your insurance needs and find policies that may be more affordable than you think. Best of all, they can give you unbiased advice to choose between various insurance companies and policies instead of being sold a one-size-fits-all solution that leaves your ceiling fan store vulnerable to catastrophe.
What Types of Insurance Are Available for Ceiling Fan Stores?
A ceiling fan store needs insurance that covers many common insurance policies. Commercial business insurance for ceiling fan stores is typically sold as a business owners policy (BOP). BOPs comprise a number of coverages meant to protect businesses from damage caused by accidents, catastrophes, and lawsuits.
For a ceiling fan store, BOPs typically include the following:
- General liability coverage
- Commercial property insurance
- Workers' compensation insurance
- Commercial automobile insurance
General Liability Coverage
General liability insurance covers your ceiling fan 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 customers or contractors.
General liability covers legal bills and settlements resulting from:
- Personal injury
- Damaged property
- Advertising injury
- Reputational damage
Because your ceiling fan 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.
Examples of general liability coverage include:
- A customer hurts themselves or damages their property while in your ceiling fan store and files a claim against you for medical bills.
- A competitor accuses your company of slander or libel and takes your ceiling fan store to court for damages.
Commercial Property Insurance
Your ceiling fan store needs property insurance in 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:
- Natural disasters
Property coverage may include:
Examples of commercial property include:
- Smoke damage from an electrical fire ruined your inventory and interrupted your ability to handle customers until your ceiling fan store’s showroom was rebuilt.
- Heavy winds and hail damaged the windows of your showroom.
- A burglar broke into your premises and stole your equipment.
Workers' Compensation Insurance
Workers' compensation insurance is mandatory in most states for any non-owner employees. It is a broad form of coverage that protects your ceiling fan 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:
- Funeral costs
- Medical bills
- Ongoing wages for injured or sick employees
- Support payment for any dependents
Examples of workers' comp insurance include:
- A worker develops nerve damage in their shoulder from repetitive lifting.
- A forklift malfunctions and disables a worker’s leg.
- Your receptionist has to take time off since developing carpal tunnel syndrome (CTS) symptoms.
Commercial Automobile Insurance
A commercial automobile insurance policy can protect your ceiling fan store from losses that arise when vehicle accidents occur.
Examples of commercial automobile include:
- Your delivery driver accidentally runs over a customer’s parked motorcycle.
- Your vehicle is determined to be at fault for a fender bender.
Additional Forms of Insurance Coverage
Beyond the basic forms of insurance for your ceiling fan store, there are additional coverages that protect you from non-standard events.
- 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
- Umbrella coverage
Speak with an independent insurance agent about which forms of coverage you need to protect your assets and get the peace of mind you deserve to run your ceiling fan store worry-free.
Ways to Reduce the Cost of Ceiling Fan Store Insurance
There’s no definitive answer for how much it will cost to insure your ceiling fan store. However, you can use $1,200 annually as a ballpark estimate, as this is the average premium rate for most small- to medium-sized businesses. This means that you can protect your business for as little as $100/month.
That being said, insurers use a number of risk factors and attributes of your business to come up with how much it would cost to provide coverage for your business.
Risk Factors for Higher Insurance Premiums
- Size of premises
- Condition of the property
- Business hazards
- Payroll size
- Claims history
- Employment status of employees
- Number of employees
- Severity potential
Risk Factors for Higher Commercial Auto Insurance Premiums
- Driver demographics
- How and where you drive
- Type of driving and vehicle
- Driving record
NAICS Code for Insurance Costs
Another way that premiums are determined by insurers for ceiling fan stores is the classification of the business’s industry by the government’s North American Industry Classification System (NAICS) code.
NAICS codes are used for insurance companies to compute premiums and risk. These codes are also used by a variety of other financially related purposes, such as qualifying for business loans and taxation purposes. Most ceiling fan stores are classified under the primary code of 444910, which stands for Other Building Material Dealers.
How to Reduce the Cost of Coverage?
There are a number of ways to reduce your insurance premiums for your ceiling fan store. These include:
- Bundling coverage under one insurer
- Reducing risk factors around your establishment
- Providing adequate oversight, enforcing safety protocols, and providing intensive training
- Investigating any discount options offered by an insurer, such as installing carbon monoxide detectors and sprinkler systems
Speaking with an independent insurance agent is a wise decision if you’re looking to save money on premiums or coverage. For instance, if you’ve scaled your business down as you reach retirement, you may qualify for lower premiums in the future.
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.
TrustedChoice.com Article | Reviewed by Paul Martin
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