Do you own a glassware store? Considering that glassware is one of the most visually appealing arts, creating stand-alone pieces and selling functional pieces to decorate your customer’s homes can be a rewarding livelihood. Whether you’re selling elaborate blown-glass works, functional kitchenware, or antique pieces, glassware stores encompass a wide variety of inventory that beautifies the world.
For all this beauty that your store may offer to the world, you’re probably well aware that there are serious risks that come with running your glassware business. What would happen to your glassware business if:
- Your inventory is shattered during delivery?
- A customer severely injures themselves in your store?
- Your furnace overheats, damaging the structure of your rented premises?
Before we begin, it is especially important to fully understand which policy you need for your glassware store. And because every store is unique in its size and operation, choosing a policy from a multitude out there can be daunting.
The answer is in choosing independent insurance agents who can help make sense of the relatively complicated process of insuring a glassware store. Working with an independent agent, you can get the coverage you deserve so you can focus on giving your customers the quality products they desire.
Which Types of Insurance Do I Need for My Glassware Store?
To begin, most glassware stores that sell glass-based products to the public in a retail location will generally need the following types of business insurance.
General Liability Insurance
Simply put, every glassware store needs liability insurance. Essentially, a liability policy provides defense against incidents that may cause bodily injury or property damage. A customer may be browsing in your store and accidentally cut themselves when a piece shatters. Who’s responsible? Your glassware store. If a fire breaks out in your workshop and ruins a customer’s prized family heirloom, liability insurance is able to pay for damage up to your policy’s limit after you’ve met a minimum payment, called the deductible.
If your glassware store is located in a leased or rented property, property insurance acts as a safeguard against damage to the structure and amenities of the location. If a furnace overheats and a fire breaks out, property insurance can compensate your landlord for replacement. Property insurance also covers your own property, including tools, computers, equipment and more. Furthermore, property insurance protects against vandalism and theft, which makes it a necessary policy for nearly any glassware store.
Bear in mind that if you rent or lease a property, your landlord may already have property insurance written into your rental agreement. Of course, this will protect the landlord’s investment - their property - but having your own property insurance can replace your own property, as well as serve as a type of “umbrella coverage” that falls outside the landlord’s policy.
Workers’ Compensation Insurance
Workers' compensation insurance provides coverage when your employees are injured on the job or have a work-related ailment. With this type of insurance, your employees are provided wage replacement, medical benefits, and paid leave if it is determined that their employment at your glassware store was responsible for their injuries.
In exchange for these benefits, the employee gives up their right to sue you, the employer, for the incident. This means you can avoid the financial drain of a lawsuit, which averages $21,800 (as of 2019).
You are likely to be required to have this for your glassware store to be in business with W2 employees, since many states require it for the welfare of your workforce. Plus, it is a good business practice, since the employer can retain the employee when they return to work.
Business Owner’s Policy (BOP)
If you’re finding that there are simply too many policies to be aware of to protect your glassware store, you should speak with an independent insurance agent about a business owner’s policy, or BOP. BOP’s provide comprehensive insurance that includes the aforementioned insurance policies, as well as:
- Business interruption insurance
- Vehicle coverage
- Crime insurance
- And more
Based on your glassware store’s specific needs, you can alter what is included in a BOP. This can be advantageous for glassware stores that have a separate glassworks facility, because you can add coverages and policy limits that incorporate increased fire- and smoke-related damage.
What makes a BOP an attractive choice is that insurers will discount the bundled policies, especially for long-term clients. It also makes it easier to pay one premium at a time rather than paying different insurers at different times.
How Much Does It Cost to Insure My Glassware Business?
To really understand the value of insuring your glassware store and workshops, you should know that that the average liability insurance claim filed is $15,000. By comparison, average premiums for small- to -mid-sized businesses are an estimated $1,200 per year. Considering that most businesses will have some type of claim filed against them at one point or another, insurance is a no-brainer to protect your livelihood and assets.
That being said, there are several risk factors that can affect your glassware store’s premiums. Let’s take a look at some of the most pertinent ones:
- Number of employees: The more employees your glassware store has on staff, the greater the likelihood of risk, thus premiums are higher.
- Size of premises: Larger facilities and several locations presents more risk, so premiums are larger.
- Payroll amount: Because workers' compensation insurance reimburses employees for a portion of their lost wages, having a larger payroll results in higher premium payments.
- Claims history: If your business has a history of incidents resulting in legal action, you will be considered a greater risk by the insurer and will typically have to pay more in premiums. Some insurers will also decline to insure accident-prone businesses, so take active measures to secure your glassware store.
- Danger of operations: While most glassware stores only deal in retail - a relatively safe industry - businesses that have a glass-fabricating facility or shop add more risk to the insurer, so premiums are higher. Furthermore, businesses that hold classes with the public on things like glassblowing will be charged greater premiums due to the likelihood of injury and mishaps.
- Automotive demographics: Young drivers under the age of 25, particularly males, cause higher premiums. Similarly, regular driving in urban areas and high-traffic zones causes more accidents, so premiums are also higher for these reasons.
NAICS Code for Insurance Costs
In addition to risk factors, insurers use a government-issued classification for businesses to help gauge the risk that your glassware store presents to their bottom line. This is known as the NAICS code, short for the North American Industry Classification System code. In addition to insurers, NAICS codes are used for a variety of other financially related purposes, such as how your business is taxed and whether it qualifies for business loans.
A business may often have a primary NAICS code followed by a secondary code, which further specifies other elements of your glassware store. Most glassware stores are classified under the primary code 44, under ‘Retail Trade,’ followed by 2299, which stands for ‘All Other Home Furnishings Stores.’
If you don’t know what your business’ NAICS codes are and how it affects your insurance rates, speaking with an independent insurance agent can help you determine which code your glassware store is classified under.
Additional Insurance Considerations: Pop-Up Shops
One of the biggest trends that small business owners have been taking advantage of in recent years has been pop-up shops. These shops enable businesses to capture seasonal markets and experiment in new territories, and they offer cheaper leases than full-fledged establishments. In many ways, having a booth at local farmers markets or craft vendor fairs are types of pop-up shops, though the fragility of glassware lends itself better to stand-alone shops. And if you’re considering doing some live glass art demonstrations, extra insurance is a must.
Of course, insuring a pop-up shop requires its own forms of separate insurance or additional riders to the policy. In most cases, the landlord or organization running the event will require your pop-up shop to have an insurance policy in effect to begin conducting business. However, you may want to add additional policies, such as umbrella coverage and enhanced commercial auto insurance, to protect against damaging goods while in transit.
If you’ve read up to this point, then congratulate yourself on having a basic understanding of what insurance policy best fits a glassware store. However, this article only scratched the surface of what you need to know to find the best insurance policy
To discover which policy coverage best fits your glassware business, consult an independent insurance agent. Independent insurance agents are experienced in listening to your needs, finding the best policy, and answering any questions you may have to get the most comprehensive and cost-effective insurance on the market.