Luggage Store

What Your Luggage and Leather Goods Store Insurance Policy Needs to Include

Luggage stores meet a high demand among fashion conscious consumers looking for affordable luxury items, such as leather purses and accessories. If you have opened a luggage, handbag and leather accessories store of your own, you will need to be sure to protect your investment with a comprehensive business insurance package. An independent insurance agent can help you review your policy options and can assist you with building a luggage store insurance portfolio that is suitable to meet your business needs.          

2014 Handbag, Luggage and Accessory Store Industry Facts From IBISWorld

  • There are approximately 33,820 handbag, luggage and accessory stores operating in the U.S.
  • These stores employ more than 81,000 people.
  • The handbag, luggage and accessory store industry generates about $14 billion in revenue each year.

What Could Go Wrong at a Luggage Store?

Luggage and leather goods stores are fairly low-risk retail establishments, and therefore pay lower insurance premiums than many other types of retail stores. However, hazards do exist, and though rare, they have the potential to be financially devastating if you do not have the proper insurance coverage in place. For example, how would your luggage store be able to handle the following scenarios if it was not insured?

  • A violent thunderstorm destroys a portion of the roof on the building in which your business is housed. Water leaks in and damages a large portion of your inventory.
  • A customer is looking at handbags. Meanwhile, the customer's child runs off, trips and falls into a wall display. The child’s injuries are severe and require surgery. The customer sues your store.
  • An employee is unpacking inventory in your storeroom and suffers a severe back injury. The injury is severe enough that physical therapy and an MRI are recommended. You are responsible for the medical costs involved.

What Types of Coverage Should You Consider for Your Luggage Store?

When you shop for commercial insurance for your luggage and leather goods store, you will find that you have a number of coverage options at your disposal. An independent insurance agent can help you determine which of these options are right for your luggage store as well as the coverage limits that may be sufficient to adequately protect your business. Some coverage types that may be of particular importance to you include the following:

  • Building insurance: Chances are your luggage store is located in a rented retail space. However, if you own the building in which it is housed, you will need this insurance to provide you with coverage for damage to its structure.
  • Business property insurance: This insurance covers the property you keep inside your store including your inventory of luggage, handbags, accessories, shelving, display units, signage, cash registers and computers. Covered events include loss and damage caused by heavy winds, electrical storms, fire, theft and vandalism.
  • Commercial general liability insurance (CGL): This coverage is part of virtually all commercial insurance packages. It provides your luggage store with coverage for court costs, legal defense fees and financial damages in the event that your business is sued for a covered event. Your CGL includes these coverages:
    • Premises liability: This covers injuries and property damage suffered by members of the public while they are on your business property.
    • Product liability: This covers your business if a design flaw or manufacturing defect results in property damage or injury to someone who is using a product purchased in your store.
    • Advertising and personal injury liability: This provides coverage if another company claims you stole copyrighted materials from them to promote a product or if someone feels that your business libeled or slandered them.
  • Business income insurance: In the event that a covered disaster forces you to temporarily close your luggage store while repairs are made, this coverage provides a continuation of income that may enable you to continue to pay employee salaries and monthly expenses until you are able to reopen for business. Business income coverage is typically limited to one year.
  • Workers’ Compensation insurance: Even if your business is located in one of the few states that do not require this coverage, it is highly recommended. Workers' compensation insurance protects your business from liability lawsuits related to employee injuries by providing injured parties with compensation for medical care and paid time off while they heal.
  • Cyber liability insurance: This new type of insurance protects your business from financial damages that may arise if hackers find a way to access stored customer information, such as names and credit card numbers.
  • Employment practices liability insurance: Commonly referred to as EPLI, this liability insurance protects your business if an employee sues for perceived illegal business practices, such as discrimination, sexual harassment or wrongful termination.

Additionally, as a business owner you may be interested in purchasing health and life insurance as well as insurance policies designed to protect your interests if your luggage store business is a partnership. Be sure to discuss all your insurance needs with your insurance agent.

An Independent Agent Can Help You Build a Luggage Store Insurance Portfolio

To ensure that your insurance portfolio adequately protects you against your various business risks, you can work with an independent insurance agent in the Trusted Choice® network. These agents are available to explain the many policy options offered by commercial insurance provides and to help you determine which coverage types are right for your luggage store. Because they are not captive to a single insurance provider, they are free to shop around for policies that provide suitable coverage at a competitive rate. Find a Trusted Choice agent near you to learn more about building an insurance portfolio for your luggage, handbag and leather accessories store.



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