Costume jewelry stores are primarily engaged in selling a variety of low- to moderately-priced necklaces, bracelets, earrings, watches, and other accessories for women, men, and even children.
Unexpected problems can bankrupt a small business like yours. Consider the consequences if you were sued for some reason, if you lost your inventory in a fire, or if your store were burglarized. Even minor shoplifting—which can be a serious problem in a costume jewelry store—can eat into your profits and hinder your ability to earn a profit.
That’s why business insurance should be a top priority. Working with a local independent insurance agent, you can find coverage that is tailored to the unique risks of your costume jewelry store, and that gives you the peace of mind you need to focus on running your business.
Why Do You Need Costume Jewelry Store Insurance?
Something as simple as a wet floor on a rainy day can lead to a customer injury, and a financial catastrophe for your business. If a customer slips and falls in your store, a seemingly minor injury can bankrupt you after you’ve paid for medical expenses and other damages for the injured party.
If the injured customer sues you, the costs to defend yourself and pay out a settlement can be devastating.
A variety of other mishaps and chronic problems can turn into a disaster, as well. Your store is filled with small, easily portable merchandise—a shoplifter’s dream. Losing even small amounts of inventory every day to shoplifters can take a huge bite out of your bottom line over time.
You might also face problems with worker injuries, employee theft, cyberattacks, fires, and severe weather. These can all wreak havoc on your ability to operate your costume jewelry store.
Costume jewelry store insurance can help you recover in all of these situations.
What Does Property Insurance Cover?
Property losses are one of the biggest threats to your costume jewelry store.
Property losses can come from fires, severe weather, theft, shoplifting, and other crimes. When these kinds of events happen, you can also face loss of income if the damage renders you unable to operate or meet sales goals for some time while you make repairs, rebuild your store, or replace lost inventory.
Commercial property insurance covers the costs of repairing or replacing damaged or destroyed physical assets, such as your actual store structure (if you own your building), and anything inside it, such as computers, fixtures, inventory, artwork, furnishings, display shelves, and more.
You also need business interruption insurance to complement your property coverage. Imagine you have a period of interruption due to a covered loss (e.g., fire, weather, theft) during your peak season—say, over Thanksgiving weekend or during the month of December. You might never recover the lost sales or be able to reopen for another season.
But business interruption coverage, or business income coverage, protects your earnings if your business is unable to operate because of damage caused by some type of disruption (fire, hail, wind, equipment breakdown). This coverage is usually quite affordable and pays for rent, employee salaries, lost income, relocation fees, and more.
What Does Liability Insurance Cover?
You might not think that your costume jewelry shop presents a serious threat to your customers and the general public. But anyone can get injured on your premises in a variety of ways, from hitting their head on a fixture to being hit by a falling display.
Injuries can range from a scratch to a concussion—or worse—and you are responsible for compensating the injured party.
Medical bills and other related expenses are a lot to cover for a small business. And they’re just the tip of the iceberg if you are sued. Then you’ll be on the hook for attorney fees, court costs, and any settlements you have to pay.
That’s where your costume jewelry store commercial general liability insurance comes in. It offers broad coverage for all kinds of liability claims, and pays for expenses for the injured party as well as your legal expenses and settlements or judgments if you are sued.
Many small business owners purchase a business owners policy (BOP), which packages property, liability, and business interruption coverage into a single, affordable package policy.
Other Insurance Coverage for Your Costume Jewelry Store
You’re likely to need several other types of business insurance coverage to ensure that you are protected from all of your risks. You can purchase endorsements (add-ons to your basic policies) or stand-alone policies as needed to fill all of the gaps.
- Crime coverage pays for loss of inventory due to theft of merchandise from shoplifting, and even for loss of money and merchandise stolen by employees.
- Commercial umbrella insurance provides an important safety net for cases when a claim exceeds the coverage limit on your general liability policy. If you were hit with an extremely costly lawsuit, this policy would kick in when the coverage on your general liability policy is exhausted.
- Workers’ compensation insurance is required for almost every business that has employees. It compensates employees who are injured on the job by paying for medical expenses and lost wages related to their injury. Your employees can trip over racks, injure their backs while unloading shipments, fall off ladders, and more. This coverage ensures their expenses will be covered in these cases, and prevents them from suing you for additional damages.
- Cyber liability insurance is important for any business that uses, transmits, or stores electronic data. And if you sell jewelry online in addition to your brick-and-mortar store, this coverage becomes essential. It pays for any costs related to a cyber breach as well as any related legal costs if a customer or supplier who was harmed by the breach sues you.
How Much Does Costume Jewelry Store Insurance Cost?
Your business insurance costs depend on the unique characteristics of your business, including the location, the number of employees, the value of your inventory, whether you own your building, and several other variables.
The amount of coverage you need and the deductibles you choose also impact your costume jewelry store insurance rates.
Find and Compare Quotes
An independent insurance agent can work with you one-on-one to determine the types and amounts of coverage you need. Your agent can get quotes from multiple insurance companies so you can evaluate the cost and coverage options and make the best choice.
Benefits of an Independent Agent
Independent insuance agents simplify the search process for finding the right costume jewelry store insurance. They’ll walk you through some handpicked policy options and explain the details and options.
Most importantly, they’ll be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.
The Lowdown on Online Quotes
Online quotes can be tempting. They are fast and easy to get—but are they accurate? And are you getting quotes for the right coverage? For business owners, choosing speed over accuracy can cost you.
Online quotes can’t and don’t see the whole picture. They can leave out important coverage that will leave you devastated if something unexpected happens. And they can leave out cost-saving opportunities that an agent can help you take advantage of.
Instead of getting an online quote, find an independent insurance agent now, and get one-on-one consultation and affordable options for the best coverage for your unique needs.