Hardware Store Insurance

All hardware stores need protection against possible threats ranging from break-ins to lawsuits and more.

Christine Lacagnina Written by Christine Lacagnina
Christine Lacagnina
Written by Christine Lacagnina

Christine Lacagnina has written thousands of insurance-based articles for TrustedChoice.com by authoring consumable, understandable content.

Tools for woodworking. Find Hardware Store Insurance.

Hardware stores offer customers an old-fashioned shopping experience in which the staff seems to know a little bit about every item on the shelves and is always helpful in finding what customers need. For some, the simple experience of shopping in a store where the workers remember them between visits is enough to keep them coming back for life. If you've invested in this type of establishment, you want to be sure to protect your business assets with appropriate hardware store insurance.

An independent insurance agent can help you get set up with all the hardware insurance you need. They'll get you matched to the right type of policy for the job. But to get started, here's a closer look at hardware store insurance.

Quick Hardware Store Industry Stats

Just how large is the hardware store industry right now? Check out these quick stats about the U.S. hardware store market and see for yourself:

  • As of this year, there are 10,394 hardware stores in the U.S.
  • California has more hardware stores than any other state in the country, with a total of 1,605.
  • This year, the DIY and hardware store market is worth $642 billion.
  • A reported 143,291 people are currently employed by hardware stores in the U.S.

All of these hardware stores and employees need protection against a number of different risks. That's what makes having hardware store insurance so essential. 


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What Could Go Wrong at a Hardware Store?

There are a few costly mishaps that could threaten the finances of your hardware store. For example:

  • A customer could slip and fall on a wet floor or get injured by a sharp tool.
  • Your key-engraving machine could become inoperable due to an employee error or a power surge.
  • An employee could be responsible for a serious motor vehicle accident while making a delivery, making your store liable for the damages.

These and other hazards make it necessary to cover your store with the right hardware store insurance coverage.      

Protect Your Hardware Store with Commercial Property Insurance

Hardware store insurance is basically a specific arrangement of business insurance policies tailored to your niche. You want to be sure that the commercial property insurance you purchase is sufficient to fully cover your inventory and other business property, such as cash registers, buildings, equipment, and shelving. As your inventory may change over time, reviewing your coverage limits every few years is wise. 

Because hardware stores frequently use expensive equipment like key-cutting machines and paint shakers, you may want to supplement your property coverage with equipment breakdown insurance. This coverage, which is also frequently referred to as boiler & machinery coverage, provides compensation for the breakdown of machinery used by your business, as well as fuse boxes, air-conditioning, and other mechanical devices in your store. In some cases, this coverage includes compensation for lost income while the machinery gets repaired.

Protect Your Hardware Store against Lawsuits with Commercial Liability Insurance

One of the main components of your business insurance policy is commercial general liability (CGL) insurance. This coverage pays for legal defense fees and financial losses associated with claims of third-party bodily injury or property damage sustained on your business property (i.e., premises liability insurance) or off-premises, such as when your employees are doing a job off-site. 

It also provides coverage if your business gets sued after a product you sold causes third-party bodily injury or property damage (i.e., product liability insurance).

However, not all events that can lead to a lawsuit are covered by CGL insurance, so you may need to supplement your coverage with additional types of liability insurance coverage. These may include the following:

  • Pollution liability insurance: Most hardware stores don't carry enough chemicals or fertilizers to present a significant pollution hazard. But if yours does, as is the case with some hardware stores that partner with agricultural co-ops, you may want to consider this additional liability coverage that can protect against related lawsuits.
  • Commercial auto insurance: If your hardware store has company-owned vehicles, it's required by law to carry commercial auto liability insurance for the fleet. This coverage can help cover lawsuit costs after an accident or pay to repair or replace damaged or stolen company vehicles.
  • Hired or non-owned auto insurance: If you sometimes rent trucks or have your employees use their personal vehicles for business-related driving, your hardware store can be sued after an accident. This coverage protects against these threats that don't involve company-owned vehicles.

You can speak with an independent insurance agent to review your liability risks and ensure you have the right coverage to protect your business.

Other Hardware Store Insurance Coverage to Consider

In addition to the property and liability coverage mentioned above, other hardware insurance coverage types may also be required or at least worth considering. These include:

  • Workers' compensation insurance: This insurance provides compensation for the medical treatment of injuries or illnesses your employees may sustain while on the job or due to work duties. Most states require businesses that have employees to carry this coverage.
  • Business income insurance: If a covered disaster forces your business to close while repairs are being made, you stand to lose a lot of income. This insurance provides your store with a continuation of income so you can continue to pay your monthly expenses and employee wages while the store is closed. 
  • Employment practices liability insurance: Frequently referred to as EPLI, this insurance provides coverage for your legal defense fees and financial damages if an employee sues your hardware store for an illegal business practice such as sexual harassment, wrongful termination, or discrimination.

There may be other insurance types that are a good fit for your hardware store. An independent insurance agent can help determine what your different exposures are and can help you find suitable coverage to mitigate those risks.


Save on Business Insurance

Our independent agents shop around to find you the best coverage.

Get Help Building Your Hardware Store Insurance Policy

Purchasing business insurance for your hardware store can be a simple process when you work with an independent insurance agent. These agents can shop around to find the right coverage to meet your various exposures. They'll find you the hardware store insurance policy that offers the best blend of coverage and cost.

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