Housewares stores sell all the little odds and ends needed to turn a house into a home. Tableware, linens, wall hangings, and plenty of interesting trinkets fill home furnishing shops. Whether the home goods store is nationally franchised or locally owned makes no difference to shoppers hunting for treasures. Small business owners, like yourself, will want to protect their housewares store by setting up their business insurance portfolio. Getting the right small business insurance coverage will help keep your shop selling plates and throw pillows well into the future.
Housewares Store Industry Facts
- Total annual US revenue is $35 billion.
- Over the last 5 years, housewares shops had an average of 2% annual growth.
- Housewares stores are responsible for employing 198,180 people.
Why Is Commercial Insurance So Important for Your Housewares Store?
Similar to all retail businesses, home furnishing stores deal with several different risks that can cause big financial losses. A well-designed business insurance plan can help safeguard your home goods shop’s profits and growth in spite of any hazards that arise. Business insurance (aka commercial insurance) can be used to protect your business-owned assets while also providing legal assistance during the challenges of a lawsuit or liability claim. Many housewares store owners, like yourself, work with independent agents in their communities to create the best (most affordable) commercial insurance package possible.
Start with Solid Property Damage Coverage
Insuring the physical building where your housewares store is located is a great beginning. If you own the storefront, then you can insure the physical structure from damage, as well as the inventory inside. You’ll want to be sure your home goods shop is financially protected from storms, fires, floods, and other hazards. However, if you lease the space instead, then your landlord may expect you to have proof of insurance as part of their leasing terms. In both situations, it’s very important to make sure the housewares inventory is covered by your property policy, which would include your shop’s merchandise, equipment, shelves, and other items owned by the business and stored inside the location.
In some cases, your independent agent may recommend you also by supplemental insurance to be sure your housewares business is totally protected. Additional coverage types you may want to think about getting are:
- Earthquake and hurricane insurance: Certain regions of the US are at higher risk for things like hurricanes or earthquakes. These types of events are devastating to both individuals and businesses. If you live in an area of the country that’s exposed to natural disasters, then you may want to add this coverage.
- Flood insurance: It’s common for business insurance policies to exclude damage caused by a flood. That means buying commercial flood insurance is the only way to get protection. Your independent agent can help figure out if flood insurance will be needed for your store and how to buy flood insurance through FEMA’s National Flood Insurance Program.
- Backup of sewer and drain coverage: Flood insurance is meant for water that comes from outside your shop. Drains or sewers that back up or overflow inside your store and cause water damage are covered under this separate type of coverage. Talk to your independent insurance agent about how to buy this special rider.
Protect Your Housewares Store from Possible Lawsuits
Lawsuits are very common in today’s society, so you’ll want to protect your home furnishings shop from the possibility of being sued. Even if your business did nothing wrong, you’ll still have to defend your business, which costs money. That’s why a general liability policy is so useful. This type of coverage pays attorney fees, court costs, and financial settlements for things like slip-and-fall accidents.
Other business insurance that may be useful to your housewares store includes:
- Employment practices liability insurance: If one of your employees believes they’ve been wronged, they will most likely file a lawsuit against your store. The issue could be any number of things, including harassment or discrimination. An employment practices liability policy will cover your costs for an attorney and any financial damages resulting from the employee’s lawsuit.
- Workers' compensation insurance: Most US states require businesses to have a workers’ compensation policy. This type of plan will cover medical costs and a portion of an employee’s salary after being injured while working.
- Employee dishonesty insurance: No matter how hard you work at hiring trustworthy employees, you could still end up with a dishonest employee. Perhaps the employee decides to steal cash from the register or takes merchandise from your stock room while on the clock. This type of coverage will help make you whole when an employee commits a crime.
Another Way Business Insurance Can Defend Your Housewares Store
Business interruption insurance is another excellent way to safeguard your housewares store. This type of insurance gives your business money if your housewares store closes down temporarily because of a covered event. Getting this money from your insurer will help pay key employees, your monthly lease/mortgage, and other important expenses while your shop is closed. This insurance gives you the opportunity to retain personnel, vendors, and your store space until you can go back to regular operations.
An experienced insurance agent can help you figure out all the types of coverage your business will benefit from most.
Get Help Designing an Insurance Portfolio for Your Housewares Store
Designing the best insurance portfolio for your home furnishings shop doesn’t need to be overwhelming. An independent insurance agent can work with you to make the process easier. These agents are able to work with many different insurance companies so they can design a useful and affordable policy for your business.