Furniture Store

How to Insure Your Furniture Store Properly

When the housing market crashed, furniture stores experienced a downturn in sales. However, with new home sales on the rise and many people taking advantage of low interest rates to purchase homes, the industry is poised to do well over the next several years. If you own a furniture store, you will want to be sure to protect your investment with a suitable business insurance package. Independent insurance agents in the Trusted Choice® network can help you build a policy portfolio that protects your furniture store from losses related to its various exposures.

2015 Furniture Store Industry Facts From IBISWorld

  • There are currently 28,876 furniture stores operating in the United States.
  • These stores employ more than 216,866 people.
  • The department store industry generates about $59 billion in revenue each year.

Your Furniture Store Needs Sufficient Property Damage Coverage

Furniture stores are stocked with a lot of expensive merchandise and other business property, such as computers and inviting décor. It is important that your business insure this property against loss or damage. Some property coverage types your insurance agent may recommend include these:

  • Building insurance: If your business owns the building or buildings in which your retail space is located or the warehouses where inventory is kept, you need to cover damage to the structure of these buildings with a sufficient amount of building insurance.
  • Property insurance: This insurance covers the contents of your stores or warehouses against hazards such as heavy winds, fire and vandalism. Covered property includes your inventory of furniture, computer systems, light fixtures, flooring and décor.
  • Flood insurance: Coverage for damage caused by floods is specifically excluded from nearly all business insurance policies. Because floodwaters can significantly damage the furniture in your store, you may want to consider supplementing your portfolio with a commercial flood insurance policy, which can be acquired through the National Flood Insurance Program (NFIP).
  • Earthquake insurance: Damage caused by earthquakes is also excluded by business insurance policies. If your furniture store is located in an area with high seismic activity, you may want supplement your portfolio with an earthquake insurance policy.

The Right Liability Insurance Can Protect Your Furniture Store from Losses

A liability lawsuit can result in large financial losses for your furniture store, so having the right coverage is very important. In the event of a lawsuit, liability insurance protects your furniture business by covering legal defense fees, court costs and financial damages. There are several types of liability insurance available. Your independent insurance agent may recommend the following:

  • Commercial general liability insurance: This is standard coverage included in business insurance policies. Often referred to as CGL, this insurance covers a number of common liability exposures faced by businesses in the retail industry. These include the following:
    • Premises liability insurance: This covers against injuries or property damage suffered by third-parties while they are on your furniture store’s property.
    • Product liability insurance: This covers against injuries or property damage caused by faulty or defective products sold in your store.
    • Advertising liability insurance: This covers against accidental trademark or copyright infringement by your store for the purposes of promoting a product or service.
    • Personal injury liability insurance: This covers against claims of libel and slander.
  • Auto liability insurance: Your furniture store likely owns a fleet of trucks or vans for the purposes of furniture transport and delivery. You need to cover these vehicles with commercial auto insurance. If you hire an outside company to handle furniture deliveries, you can protect your business interests against liability charges in the event of an accident by purchasing nonowned for hired auto insurance.
  • Cyber liability insurance: Many shoppers at furniture stores use credit cards to pay for their purchases or they provide personal information, including Social Security numbers, to apply for financing through your store. If your business’s computer system is hacked, criminals may gain access to your customers’ financial information. Cyber liability insurance provides coverage to pay for credit monitoring services and other damages in the event of this type of scenario.
  • Employment practices liability insurance: This provides coverage in the event that a current or former employee sues your furniture store for any number of illegal business practices, such as wrongful termination, harassment or discrimination.
  • Umbrella insurance: In the event that you feel that the liability coverage limits provided by your insurance company are too low, you can supplement your portfolio with umbrella insurance, which provides additional liability coverage.

What Other Furniture Store Insurance Coverage Should You Consider?

In addition to the property and liability coverage mentioned above, there are other insurance coverage types that you may want to discuss with your independent insurance agent. These include the following:

  • Business income insurance: This provides your furniture store with a continuation of income if a covered disaster forces you to close for an extended period while repairs are made.
  • Workers' compensation insurance: Many of your employees may have to engage in heavy lifting, and as such, work-related injuries are common. Workers' compensation insurance, which is required of employers in most states, provides coverage for necessary medical treatment, paid time off and other financial losses associated with employee injuries.
  • Health insurance: If your furniture store employs at least 50 full-time workers, you are required under the Affordable Care Act to provide these employees with subsidized health insurance. An independent agent can help you find and review affordable options.
  • Life insurance: Whether you want to include life insurance as part of your employee benefits package or you want to look for coverage for the principals in your business, your independent insurance agent can help you review your various options.

Get Help Building a Strong Furniture Store Insurance Portfolio

Purchasing commercial insurance coverage for any business can be a difficult process. It is therefore to your benefit to work with an independent agent in the Trusted Choice network when you are working toward insuring your furniture store. These agents can help you identify and assess your various exposures and can recommend the right kind of coverage to mitigate these risks. Trusted Choice agents can also save you money by shopping around for competitively priced policies that are right for your business. Find a Trusted Choice agent near you to learn more about building a suitable furniture store insurance portfolio.

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