Leather goods stores specialize in selling jackets, clothing, handbags, wallets, suitcases, gloves, belts, wallets, and various other items that are made primarily of leather. You might find leather goods stores in shopping malls, strip malls, stand-alone stores, and even tents and pop-up locations at festivals, special events, or other temporary locations.
If you own a leather goods store, you need to protect your livelihood from all of the little things — and big things — that can go wrong. You need to know the types of risks you face and how you can protect your assets and move forward even in the worst of times.
With the right business insurance, you can put your mind at ease and focus on what’s important. An independent insurance agent in your city can help you find leather goods store business insurance that helps you protect your livelihood.
Why Do I Need Leather Goods Store Insurance?
Leather goods store insurance helps you avoid or mitigate financial losses from unexpected events. Consider all of the things that could go wrong (and result in serious repair costs, loss of income, or a lawsuit) during the course of your workday:
- Accidents, such as trips and falls in the store or parking lot
- Shopping carts or store fixtures causing injury or property damage in the store or parking lot
- Damage to your inventory due to some catastrophic or unexpected event (fire, smoke, weather, vandalism, etc.)
- Loss of income due to a catastrophic or unexpected event (a fire damages part of your store forcing you to close while repairs are made)
- Employee theft of cash or inventory
- Selling faulty or dangerous products
- Employee lawsuits related to discrimination or other claims
- Cyber breaches (data breach of your online store)
What Does Leather Goods Store Insurance Cover?
Leather goods store insurance should cover the unique risks you face in your line of business. This includes physical damage to your building or property as well as your responsibility to financially compensate any customers or members of the public who get injured on your property or as a result of buying something from you.
Keep in mind that if you occasionally open a temporary location (e.g., at the state fair, at a music festival, etc.) in addition to your permanent location, you must ensure that all of your leather goods store business insurance policies extend to those temporary operations where applicable.
Working closely with an independent insurance agent, you can determine exactly what risks you have and find tailored insurance policies to address them.
What Leather Goods Store Insurance Policies Do You Need?
You need several business insurance policies to cover all of your unique risks.
- Property coverage for buildings and their contents such as computers and cash registers, inventory, equipment, furniture, fixtures, and more. Commercial property insurance helps you rebuild or make repairs when unexpected events — like a fire or severe weather — destroy your merchandise and your physical space (the structure).
- Business interruption coverage which compensates for lost business income and pays for operating expenses if you must temporarily close after a covered loss (e.g., a fire damages your stockroom and part of the sales floor, and you must close your store during the rebuilding process).
- Liability coverage which pays for claims of bodily injury and property damage to third parties due to your negligence (e.g., an employee leaves a ladder unattended while stocking shelves, and a child climbs the ladder, falls, and is injured).
If you operate a single store or even several stores, you may be able to bundle your basic property and liability coverage together into a packaged policy (business owners policy, or BOP) designed for small businesses owners.
Do You Need Any Other Coverage for Your Leather Goods Store?
Your commercial property and liability policies cover a lot, but they do not cover everything. You’ll likely need to purchase some additional tailored coverage in the form of endorsements (optional coverage add-ons) to your basic business insurance policies.
Or you may need to purchase additional stand-alone policies that provide the following types of coverage:
- Commercial umbrella insurance provides excess liability protection to any of several other policies you might have. If a customer injury in your store leads to an expensive lawsuit that exceeds the limits of your commercial general liability policy, your commercial umbrella policy kicks in with higher coverage limits.
- Commercial auto insurance ensures that you’ll be able to pay for any physical damage or injuries you cause if you are in an auto accident while driving for business purposes. If you pick up or deliver leather cleaning or repair work, or use vehicles for any business purpose — including running errands — you’ll need to discuss commercial auto insurance with your independent insurance agent.
- Workers’ compensation insurance is typically required for any business that has employees. It pays for lost income and medical expenses for employees who are injured on the job. If a cashier, stock person, store manager, or any other type of employee is injured while lifting heavy boxes, slipping on a wet floor, or falling off of a ladder, workers’ compensation insurance pays for related medical costs and compensates the employee for time away from work.
- Crime coverage protects your business if an employee or a group of employees engage in theft, forgery, or fraud that damages your business. This includes theft of money in the cash register or safe, shoplifting, and vandalism.
- Sign coverage pays for damage to outdoor signs that are not attached to your building when the damage is caused by weather, vandalism, fire, etc.
- Utility interruption coverage provides income protection if you are unable to operate due to a covered utility (water, electrical) interruption.
- Cyber liability insurance is important for any business that uses, transmits, or stores electronic data. And if you sell leather goods online in addition to your brick and mortar store, this coverage becomes essential. It pays for certain costs related to a cyber breach as well as any related legal costs if a customer or supplier who was harmed by the breach sues you.
If you occasionally operate out of temporary locations, talk to your insurance agent about your need for inland marine coverage. It protects your inventory, tools, tents, signs, computer equipment, and supplies while they’re in transit such as when these items are being transported from your brick and mortar location to a temporary location for a weekend festival.
A Note About Bailee’s Coverage for Leather Goods Stores
Cleaning and repairing leather goods usually requires special techniques and handling. Many leather goods stores offer leather cleaning and repair services for the general public.
If you offer leather cleaning or repair, a customer’s personal item may be entrusted to you for a period of time while you clean it, repair a tear, fix a seam, or replace a worn lining. If you provide this service, you have several additional risk exposures.
What happens if a customer’s property is damaged while it is in your care, custody, or control? Because standard business property and liability policies cover only your own business property, you need special coverage for your customers’ property that is in your possession.
Bailee’s coverage is an add-on to a business property policy that covers non-owned property that is stored at your store or is in your possession. It helps pay for damages and minimizes the financial implications for you and your customers if their property is damaged while in your control. Bailee’s coverage is specifically designed for businesses like tailors and cleaners that take in the property of others and are expected to return it undamaged.
If you offer cleaning or repair services in your leather goods store, talk to your independent insurance agent about your need for this type of coverage.
How Much Does Leather Goods Store Insurance Cost?
A variety of factors come in to play when determining how much your leather goods store insurance will cost. Insurance companies evaluate your individual risk factors such as your location, your store size, the number of employees, and the value of your inventory.
What’s more, the types of policies you need and your coverage limits have a tremendous impact on what it will cost to insure your leather goods store.
Some small business owners can get the best rates by purchasing a business owners policy (BOP) which combines commercial liability insurance, commercial property insurance, and business interruption coverage into one affordable and efficient package policy. Other coverage can be added on to complete your comprehensive business insurance program.
Find and Compare Quotes
An independent insurance agent can work with you one-on-one to determine the types and amounts of coverage you need. Your agent can get quotes from multiple insurance companies so you can evaluate the cost and coverage options and make the best choice.
Benefits of an Independent Agent
Our agents simplify the search process for finding the right leather goods store insurance. They’ll walk you through the handpicked policy options and explain the details and options.
Most importantly, they’ll be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.
The Lowdown on Online Quotes
Online quotes can be tempting. They are fast and easy to get — but are they accurate? And are you getting quotes for the right coverage? For business owners, choosing speed over accuracy can cost you.
Online quotes can’t and don’t see the whole picture. They can omit important coverage that will leave you devastated if something unexpected happens. And they can leave out cost saving opportunities that an agent can help you take advantage of.
Instead of getting an online quote, find an independent insurance agent now and get one-on-one consultation and affordable options for the best coverage for your unique needs.