Blenders, cookware, and coffee machines fill the shelves of kitchenware stores across the US. Just about everything consumers need to make their kitchens functional can be found in big cookware retailers (think Williams Sonoma) or locally owned kitchenware shops. Kitchenware store owners, like yourself, want to be sure their retail shops stay in business for a long time, selling plenty of toasters and stemware to their neighbors. Buying the right small business insurance plans can help keep your specialty shop cooking even when unexpected challenges come up.
Kitchenware Store Industry Facts
- Total annual US revenue is $20 billion.
- Over the last 5 years, cookware shops had an average of 2.8% annual growth.
- Kitchenware stores are responsible for employing 100,975 people.
What Could Happen in a Cookware Store?
A variety of things can go wrong at any business, including your kitchenware shop. Of course, it may be uncommon for a devastating financial loss to come about, but it’s not impossible. That’s why it’s always a good idea to have the best insurance coverage in place and ready to protect your kitchenware store if something does go wrong.
Without business insurance, how would your shop afford to deal with these situations:
- It’s a rainy day, your floors are a slippery, and one of your store patrons slips and falls while shopping. The fall causes the customer to fracture their wrist, resulting in surgery, physical therapy, and lots of missed work. The customer sues your kitchenware store to get money for medical bills, lost income, pain and suffering.
- After many days of spring storms, the shops sewer gets backed up and floods your kitchenware shop. You only got about an inch of water, but the store has to be closed for a few days while cleaning up. Plus, some of your inventory and equipment has to be thrown away.
- A former employee claims your store manager kept them from a promotion for discriminatory reasons and files a lawsuit against your business. Although you might be certain this is a false allegation, you still must hire an attorney to defend your cookware store, and those legal bills add up quickly.
Unfortunate events happen all the time and they must be handled. This often means that a business will spend lots of money to resolve the issue and save their reputation. Stores that have business insurance will find it to be just a blip in their business’s history.
Working with an independent insurance agent can help you sort out which business insurances would be best for your kitchenware shop.
Start by Covering Your Kitchenware Store with Property Insurance
Your retail space and all of its contents are really your biggest asset. So it’s very important that you have enough insurance coverage to get the right compensation in the event of a big loss.
- Building insurance: Usually this is only needed if you actually own the building where your store is located. If you do own the storefront, then building insurance will pay you for any damage to the physical structure of the building. Most of these policies cover damage from hail, wind, fire, lightning, or vandalism.
- Property insurance: This type of insurance is meant for everything inside your shop. So your cookware supplies, shelving, cash registers, and other items would be covered under this insurance. You’ll need to get a separate policy for any inventory or equipment stored in a different location, like an offsite warehouse or storage unit.
- Backup of sewer and drain insurance: If your store is at or below ground level, then you could risk water damage from backed up drains or sewers, and sump pump failures. This type of coverage will make sure you have the financial resources needed to clean up and get back to business.
- Flood insurance: Most business insurance (aka commercial insurance) policies exclude coverage for flood damage. If your store is at risk of flooding, be sure to talk with an independent insurance agent about how to supplement your business insurance with a commercial flood policy through FEMA’s National Flood Insurance Program.
- Earthquake and hurricane insurance: Certain parts of the US have a much higher risk for things like hurricanes or earthquakes. If your kitchenware store is in one of these parts of the country, then you may want to buy this coverage.
Be sure to speak with an experienced independent insurance agent who can cook up the best commercial insurance portfolio for your kitchenware shop.
Put a Lid on Possible Lawsuits against Your Kitchenware Store
Your cookware shop could be sued for any number of reasons. Even if your business didn’t do what it’s being accused of doing, you’ll still have to spend plenty of money defending your business. Buying a general liability policy can put a lid on a variety of allegations. Good general liability coverage will pay your court fees, attorney costs, and any financial settlements related to a covered risk.
Other commercial insurances that your kitchenware store could find useful are:
- Workers' compensation insurance: Most US states require businesses to have workers' compensation policies. This type of plan will cover medical costs and a portion of an employee’s salary when they are injured while working.
- 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.
- 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.
Commercial Insurance Does Even More for Your Kitchenware Store
If your kitchenware shop closes temporarily, for any number of reasons, you’ll most likely be worried. Getting money to pay for the mortgage or lease, salaries for key employees, and other business expenses would help keep your kitchenware store going despite this setback. That’s why business interruption insurance is popular with small business owners, like yourself. This type of insurance gives your kitchenware store the money needed to pay bills while your business is shut down. Having this type of insurance means you can keep personnel on staff, maintain vendor relationships, and retain your retail space until it’s time to go back to normal operations.
An experienced independent insurance agent can help you figure out if business interruption insurance will be worthwhile, as well as discuss all your other business insurance needs.
Benefits of an Independent Insurance Agent
Independent insurance agents have access to multiple insurance companies, ultimately finding you the best coverage, accessibility and competitive pricing while working for you. Find an independent insurance agent in your community here.