Hardware stores offer customers an old-fashioned shopping experience. The staff seems to know a little bit about everything and is always helpful in finding what customers need. For some, simply the experience of shopping in a mom-and-pop type store where the workers remember them between visits is enough to keep them coming back. If you have invested in this type of establishment, you will want to be sure to protect your business assets with an appropriate hardware store insurance portfolio.
There are a few costly mishaps that could threaten the finances of your hardware store. For example:
These and other hazards make it necessary to cover your store with the right insurance coverage.
You will want to be sure that the property coverage you purchase with your commercial insurance policy is sufficient to fully cover your inventory as well as all your business property such as cash registers, computer systems and shelving. As your inventory may change over time, it is a good idea to review your coverage limits every three to five years.
Because hardware stores frequently make use of expensive machinery such as 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 in the course of operating your business as well as fuse boxes, air-conditioning, and other mechanical devices in your store. In some cases, this coverage will even include compensation for lost income while the machinery is being repaired.
Keep in mind that nearly all commercial insurance policies exclude coverage for flood damage, so if your business is at risk, you will want to be sure to supplement your portfolio with a commercial flood insurance policy. This insurance is provided through the National Flood Insurance Program (NFIP). Your independent insurance agent can help you secure a policy.
One of the main components of your business insurance policy will be commercial general liability coverage, or CGL. This coverage includes legal defense fees and financial losses associated with bodily injury or property damage sustained on your business property (premises liability insurance) or off premises such as when your employees are doing a job off site. It also provides coverage in the event that you are sued after a product you sell causes bodily injury or property damage (product liability insurance).
Not all events that can lead to a liability lawsuit are covered by CGL, however, so you may need to supplement your coverage with additional liability insurance products. These may include the following:
You can speak with an independent insurance agent to review your liability risks and ensure that you have the right coverage to protect your business.
In addition to the property and liability coverage mentioned above, there are other insurance coverage types that may be required or are at least worth considering. They are the following:
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.
Purchasing business insurance for your hardware store can be a simple process when you work with an independent agent in the Trusted Choice® network. These agents can shop around to find the right coverage to meet your various exposures. Find a Trusted Choice agent near you to learn more; soon you will be able to start comparing quotes on a hardware store insurance portfolio designed specifically for your business.