Running a fencing supply company can be a rewarding endeavor. Whether you are coordinating your installers, managing your sales team, or keeping up your inventory, keeping track of everything requires keen supervision. However, one commonly overlooked aspect of running a fencing supply company is having the right insurance.
What would happen if:
- An employee suffers an injury at your warehouse?
- Flooding caused mold damage on your premises?
- An electrical fire puts you out of business until repairs are made to your store?
In order to protect your fencing supply store from these types of catastrophes, you need the right insurance. To protect your hard work and investment, It’s important to understand how to insure a fencing supply company. In this article, you will learn more about insuring your store, including:
- What Types of Insurance Coverage Do I Need for a Fencing Supply Store?
- What Is the Cost of Insuring My Fencing Supply Store?
- How to Reduce the Cost of Coverage?
- Additional Forms of Insurance for Fencing Supply Store
- Ask the Experts: What Should I Know about Fencing Supply Store Insurance?
As you read this article, be aware that an independent insurance agent can help you decide the right coverage for your needs. Considering that every business is different, independent insurance agents are able to assess your needs and potential risk factors, ultimately finding you a policy that is both cost-effective and comprehensive.
What Types of Insurance Coverage Do I Need for a Fencing Supply Store?
A fencing supply store needs insurance coverage for every aspect of the business. Sold under a business owners policy (BOP), your fencing supply store can get coverage that prevents significant financial liabilities should a covered event occur. Most BOPs provide the following coverages:
- Commercial property coverage
- General liability insurance
- Workers' compensation
- Commercial automobile insurance
|Type of Coverage||Description of Coverage||Examples|
|Commercial Property Coverage||Your fencing supply 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 fire, theft, vandalism, or natural disasters. Property coverage may include equipment, inventory, offices/premises, supplies, and tools.||Smoke damage from an electrical fire ruined your inventory and interrupted your ability to handle customers until your showroom was rebuilt. A burglar broke into your premises and stole your computer equipment.|
|General Liability Insurance||General liability insurance covers your fencing supply 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, or reputational damage. Because your fencing supply 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.||A customer hurts themselves or damages their property while in your fencing supply store or work yard and files a claim against you for medical bills. A competitor accuses your company of slander or libel and takes your fencing supply store to court.|
|Workers' Compensation||Workers' compensation insurance is mandatory in most states for any non-owner employees. It is a broad form of coverage that protects your fencing supply 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 lawsuits, funeral costs, medical bills, ongoing wages for injured or sick employees, and support payment for any dependents.||A worker tears a ligament while climbing a ladder. 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 fencing supply store from losses that arise when car accidents happen.||Your delivery driver accidentally runs over a customer’s parked motorcycle.|
Insurance is customizable for a fencing supply store depending on its needs. Most insurers offer umbrella insurance, which increases the liability of existing insurance policies by paying a single premium. This coverage can include:
- General liability insurance
- Professional liability
- Commercial auto insurance
The value of an umbrella is that it pays for any lawsuits that exceed the current limits of your coverage, typically in increments of $1 million for covered events. This can be useful if, for example, you are being sued by multiple parties after a warehouse fire occurred with injured employees at your fencing supply store.
What Is the Cost of Insuring My Fencing Supply Store?
There’s no definitive answer for how much it will cost to insure your fencing supply store. However, you can use $1,200 annually as a ballpark number, as this is the average premium rate for most small- to medium-sized businesses.
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 fencing supply 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.
Often a business may have a primary NAICS code (the code that best fits your business) and a secondary code (if your business has other elements of a second industry).
For instance, most fencing supply stores are classified under the primary code of 444910, which stands for Other Building Material Dealers.
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How to Reduce the Cost of Coverage?
There are a number of ways to reduce your insurance premiums for your fencing supply store. These include:
- Bundling coverage
- Reducing risk factors
- Providing adequate oversight and 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.
Additional Forms of Insurance for Fencing Supply Stores
Because no two fencing supply stores are identical, neither should insurance coverages be the same. By speaking with an independent insurance agent, you should explore which types of coverage best fit your needs and scope of your business. The following is a list of some other coverages that you should discuss with an independent insurance agent:
- 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
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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