Electronics and household appliance stores are popular among consumers of all ages and income brackets. Whether for a kitchen upgrade or a new laptop for homework, these stores provide the goods and services consumers need. If you are the owner of an appliance or electronics store, you will need to be sure to protect your investment with a comprehensive business insurance package. An independent insurance agent in the Trusted Choice® network can answer your insurance-related questions, help you review your policy options and assist you with building an electronics store insurance portfolio that is suitable to meet your business needs.
2015 Household Appliance and Electronics Store Industry Facts From IBISWorld
- There are approximately 37,300 household appliance and electronics stores operating in the U.S.
- These stores employ more than 326,516 people.
- The appliance and electronics store industry generates about $76 billion in revenue each year.
Appliance and Electronics Stores Need Sufficient Property Insurance
You have likely invested a lot of capital into establishing your household appliance and electronics store. It is important that you protect this investment buy building a policy that provides sufficient coverage to compensate you adequately in the event of an accident or disaster. Some property coverage types to consider include the following:
- Building insurance: If your business owns the retail space in which it is housed, you need to cover the structure of the building against damage. In some cases, business owners who lease their space are required to cover the building structure as a term of their lease.
- Business property insurance: This insurance covers the property you keep inside your store including your inventory of electronics, appliances, accessories, display units, shelving, signage, cash registers and computers. Covered events include loss and damage caused by severe weather, falling objects, fire, theft and vandalism.
- Bailee insurance: If your business engages in computer or appliance repair, you are responsible if your customers’ property is damaged while in your possession. Bailee insurance covers third-party property when it is in your care, custody or control.
- Flood and earthquake insurance: Damage caused by floods and earthquakes is excluded from business property insurance. If you are at risk, your independent insurance agent can help you supplement your electronics store insurance portfolio with policies that provide the coverage you need.
Liability Insurance Shields Appliance and Electronics Stores from Losses
Liability insurance is particularly important for all businesses that have liability exposure. Even if the courts find in your favor, without insurance, the high cost of legal defense can be detrimental to the financial health of your business. When you have the right types of liability insurance, you count on having coverage for legal fees, court costs and financial damages. Some insurance types to discuss with your agent include these:
- Commercial general liability insurance (CGL): This coverage is part of virtually all commercial insurance packages. It provides your electronics store with coverage for a number of exposures common to retail establishments. It includes the following:
- Premises liability: This insurance covers treatment of injuries and provides compensation for property damage that might result from an accident experienced by members of the public while they are on your business property.
- Product liability: If a product that you sell in your store proves faulty and causes injuries or property damage to others, your store can be included in a liability lawsuit. Product liability insurance protects your business from related losses.
- Completed operations liability: For stores offering delivery and installation services, this provides coverage if an employee causes property damage or illness to a customer because of a poorly completed job when installing the product.
- Auto liability insurance: If your electronics store owns trucks or vans, such as would be used for deliveries and service calls, you need to be sure to these vehicles with commercial auto insurance. Adding hired or nonowned auto liability coverage can further protect your business by providing liability coverage for other vehicles while they are being used for business-related purposes.
- Cyber liability insurance: Many appliance and electronics stores offer financing and credit options to their customers, and this involves collecting information such as driver’s license and Social Security numbers. This relatively new type of insurance protects your business from financial damages if hackers access this confidential customer information.
- Employment practices liability insurance: Often referred to as EPLI, this liability insurance protects your electronics store business if an employee sues for a perceived illegal business practice, such as harassment, discrimination or wrongful termination.
Other Insurance Policies Owners of Electronics Stores Should Consider
When building your electronics store insurance portfolio, there are additional policies that you might want to include. Your independent insurance agent is likely to recommend these:
- Business income insurance: In the event that a covered disaster forces you to temporarily close your electronics store, this coverage provides your business with a continuation of income while repairs are made. This enables you to continue to pay employee salaries and monthly bills and expenses until you can resume normal operations. This coverage is typically limited to one year.
- Workers’ Compensation insurance: Appliance stores deal with some heavy merchandise such is refrigerators and stoves. Employees can be injured while unloading or moving appliances during installations or any number of other ways. Workers' compensation insurance protects your business from liability lawsuits related to employee injuries sustained on the job. It provides injured parties with compensation for medical care and paid time off if needed.
Additionally, as a business owner you may be interested in purchasing health and life insurance. You may also be interested in purchasing insurance policies that are designed to protect your interests if your electronics store business is a partnership. Be sure to discuss all your business insurance needs with your insurance agent.
Find Help Building Your Appliance and Electronics Store Insurance Portfolio
To ensure that your insurance portfolio is adequate to protect your business against its various risks, you can work with an independent insurance agent in the Trusted Choice network. These agents can explain the many policy options offered by commercial insurance providers and can help you determine which coverage types are right for your electronics and appliance store. Because they are not captive to a single insurance provider, they are free to shop around and build a portfolio made up of policies that provide suitable coverage at a competitive rate. Find a Trusted Choice agent near you to learn more about building an insurance portfolio for your household and electronics store.