When your customers come to your cosmetics store, they depend on you for products, expertise, and service. You've worked hard to build your business and reputation. Unfortunately, sometimes things go wrong. According to The Hartford insurance company, 4 in 10 businesses will have a claim within 10 years of operating. Make sure you have the coverage you need to protect your business and everything you have worked for.
Independent insurance agents have access to many insurance companies. They'll find you the best coverage and competitive pricing while working for you. Find an independent insurance agent in your community for your cosmetic store here.
Bad Things Happen
The cost of an accident, lawsuit, fire, or other incident can be crippling. One study found that 75% of small businesses are underinsured. So how do you know how much and what kind of insurance you should have? The first place to start is a risk assessment.
A risk assessment will help you identify the type of threats common to your business and the impact they could have. What would happen to your business if a defect in one of your products injured a customer? What would it take to recover? What about a flood from a broken pipe? Or a systems failure? According to FEMA, up to 60% of small businesses never reopen after a disaster. Understanding what can go wrong and what your business would need to continue is important. It can mean the difference between recovery and closing your store.
Cosmetic Store Insurance: The Basics
For small to midsize retail businesses like your cosmetic store, a business owners policy, or BOP, provides most of the basic insurance coverages that you need at a discounted price. A BOP includes:
Commercial property insurance: This protects the physical assets of your business — the building, inventory, equipment, valuable papers, and accounts receivable — from fire, storms, explosions, burst pipes, theft, and vandalism.
Business income insurance: This covers payroll and expenses if you have to shut down because of a covered peril, like fire or storm damage. It will also pay the expenses of moving to a temporary location if necessary.
General liability: This pays legal fees, medical expenses, and damages resulting from lawsuits, investigations, and settlements.
Equipment breakdown: This pays to repair or replace production equipment (like a forklift), computer networks, heating and air conditioning, and other machinery and systems that keep your business running.
A BOP, however, does not include everything you may need. Workers' compensation, commercial auto, flood, and earthquake insurance are purchased separately. A professional independent insurance agent can advise you on the coverage you should have.
Insurance companies limit BOPs to according to number of employees, square footage of the building, and annual sales. Larger businesses purchase commercial policy packages which have higher limits and customized coverage.
Cosmetic Store Insurance: Optional Coverage
Additional coverages are available to customize your insurance to the individual needs of your cosmetic store business.
Umbrella Insurance, product liability insurance, and cyber liability insurance offer extra layers of liability protection from the cost of legal fees, lawsuits, and settlements. Employee dishonesty and crime insurance provide additional loss and damage protection from theft. Utility insurance can help you recover if you have to close your store because of utility outages and interruptions.
How to Save Money on Business Insurance
- Shop around: Companies often specialize in certain industries and their prices can be more competitive. Call and get quotes from several so you can compare them. Trade organizations can also be helpful. Find out if there are discounts available from any you belong to. Independent insurance agents work with many companies. They can save you time and money by doing the work for you.
- Bundling: BOPs are very popular for small and midsize business. They include the basic coverages at a discounted rate.
- Driving history: Keep an eye on who drives company vehicles. Employees with poor driving records can increase the cost of commercial auto insurance.
- Deductible: The higher your deductible, the lower the premium.
- Loss prevention: Insurance companies have resources to help you with safety, disaster preparation, and human resource policy. Implementing recommended procedures may help reduce premiums.
Review Your Coverage with an Independent Insurance Agent
Independent insurance agents can provide invaluable advice to protect your business. They can help you with risk assessments, make coverage recommendations, and get quotes from multiple companies. They can help you save money by showing you how to reduce risks from fire and work-related accidents. They'll give you professional advice about disaster planning.
The right coverage, a good disaster plan, and an independent insurance agent can save you money. In the long run, they may even save your business.
Our independent agent matching tool will find you the best insurance solution in your area. Tell us what you're looking for and we'll recommend the best agents for you. Any information you provide will only be sent to the agent you pick.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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