Power equipment stores sell, maintain, and repair snow blowers, lawn mowers, chainsaws, generators, and gas trimmers and blowers.
These stores employ a wide range of employees, from cashiers and office personnel to skilled repair technicians. Power equipment stores also face a lot of risks that can be costly and damaging to the long-term survival of the business.
If you own a power equipment store, you need a comprehensive business insurance program tailored to your unique risks.
An independent insurance agent can help you find policies that protect your business property from fire, theft, and vandalism. What’s more, you need protection from the financial fallout when your business damages other people’s property while it’s being repaired, and while your employees are driving your trucks or vans out on public roads.
Why Do You Need Power Equipment Store Insurance?
Power equipment stores are retail establishments with risks like many other stores or shops. What's more, many power equipment stores take items for repair into the shop. You or your employees can damage a customer’s snow blower or lawn mower during transport, while in your shop, or in the course of making repairs.
What’s more, the possibility for property damage to your building and business property, or your customers’ property, is endless. Your shop can catch fire, damaging everything inside—including inventory, tools and equipment, and power equipment that belong to customers and is being stored at your shop.
The specific business insurance policies that you need depend on the number of employees you have, and the types of services you provide. Your business insurance policies and endorsements should address the following risks, at a minimum:
- Damage to your building or shop
- Damage to your own inventory, office equipment, computers, tools, and equipment
- Your customers’ physical well-being on your premises
- Your customers’ property while in your care
- Employees driving company-owned vehicles
- Work-related injuries and illnesses
What Does Power Equipment Repair Store Insurance Cover?
Power equipment stores need a variety of basic business insurance policies, as well as several additional coverage options tailored to their specific business risks.
- Commercial general liability (CGL) insurance pays for the costs associated with bodily injury or property damage claims against your business. General liability insurance offers broad protection for a variety of liability risks that your business is exposed to, from customer slips and falls to claims of advertising liability, slander, libel, and more. Your CGL policy will pay for your legal defense, attorney and court costs, and any settlements or judgments that you must pay, up to your policy limits.
- You can also be held responsible for damage to customer property that is in your care, custody, or control. If you take customers’ power equipment onto your premises to make repairs, you should consider bailee’s coverage. It covers non-owned property (customers' property) stored at your shop or in your possession.
- Power equipment stores need commercial property insurance to protect their buildings and contents from costs associated with weather, fire, smoke, vandalism, theft, and other types of property damage. Business property insurance protects, not only your building, but also your valuable and expensive inventory, computer systems, fixtures, parts inventory, tools, and other equipment that you use in your operations.
- Your business property policy should also include business interruption coverage, which provides income protection if you must temporarily cease operations due to some unforeseen event (fire, weather, etc.).
- If you qualify, you might choose to purchase a business owners policy (BOP), which is a small business insurance policy that includes property, liability, and business interruption coverage in one affordable package.
Power Equipment Stores Need Commercial Auto Insurance
You probably have employees who pick up and deliver larger power equipment after purchase, as well as before and after repairs are made. In these cases, it is likely that you provide trucks, vans, or other vehicles for your employees to drive.
If you own one truck or a fleet of vehicles, you need commercial auto insurance. It covers your cars, trucks, and any other vehicles you use for business. It provides bodily injury and property damage liability coverage, as well as collision, comprehensive, and uninsured motorist coverage.
While similar to personal auto insurance, commercial auto insurance is priced differently and is designed for commercial situations. Your commercial auto insurance can be tailored to your needs, and your coverage and premiums will be based on how your vehicles are used and who drives them.
Each vehicle owned by your power equipment store or used for business purposes can be listed separately on your business auto policy, with corresponding coverage for each vehicle that can differ depending on the vehicle’s characteristics and the coverage it requires.
It is important to note that if you or your employees drive personal vehicles for business use, you need non-owned auto liability insurance. This coverage can be part of your business auto policy, or it can be added on to your commercial liability coverage if your business doesn't own any vehicles. It covers you and your employees when driving personal vehicles for business purposes.
Workers’ Compensation Insurance for Power Equipment Stores
Accidents happen, even in the safest workplaces. Power equipment stores can be dangerous places, particularly for the employees who make repairs or do maintenance work. The potential for cuts, abrasions, smashed hands, repetitive motion injuries, and worse is with you and your employees every day. And even your office personnel or cashiers can be injured by a simple slip and fall.
If one of your employees gets injured while on the job, they may face costly medical bills, and may not be able to work until fully recovered.
Workers’ compensation insurance protects your employees and your business from the costs associated with work-related injuries and illnesses. It provides coverage for medical care and income protection for an injured worker while they are unable to work. Workers’ compensation insurance also helps protect employers from lawsuits by injured employees.
Each state has workers’ compensation insurance laws. Most states require nearly every business that has employees to provide this coverage. Your state’s workers’ compensation statutes determine the amount of benefits injured workers are entitled to, which impairments or injuries are covered, how those impairments will be evaluated, and how medical care will be delivered.
Talk with your independent insurance agent about workers’ compensation insurance. Your agent should be able to educate you about your state’s workers’ compensation requirements, and can help you find appropriate coverage.
What Other Insurance Policies Do You Need to Protect Your Livelihood?
Power equipment stores also need a variety of other business insurance policies, depending on where and how you do business, how many employees you have, and other factors that you should discuss with your agent. Most of these policies can be tailored to the exact needs of your business and the risks it faces.
- Employee theft and crime coverage protects you from instances of employee theft, fraud, or other crimes against your business.
- Inland marine coverage protects property that is in transit, such as tools, equipment, and supplies that are on the move during pickup and delivery services. Commercial property and commercial auto policies typically exclude coverage for those items once they leave your business premises.
- Employment practices liability coverage protects you from employee lawsuits related to discrimination and other employment-related business practices.
- Cyber liability insurance provides coverage in the event of a data breach involving your business. This is particularly important if you accept credit card payments or operate an online power equipment store.
How Much Does Power Equipment Store Insurance Cost?
Power equipment store insurance might cost several hundred to several thousand dollars per year for liability coverage. Your costs are likely to be higher or lower than average depending on the unique characteristics of your business, such as the location, the number of employees, the value of your commercial property (building plus contents), whether you own your building, and many more variables.
The amount of coverage you need and the deductibles you choose also impact your power equipment store insurance costs.
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
Independent insurance agents simplify the search process for finding the right power equipment store insurance. They’ll walk you through some 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 leave out 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.
TrustedChoice.com Article | Reviewed by Paul Martin
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