So what kind of insurance does a prefabricated building supply store need? Honestly, it all depends. Every company is different, and therefore has different insurance needs. There's actually a long list of insurance options that can help provide your business with the proper coverage, and an independent insurance agent is exactly what you need.
An independent insurance agent will shop multiple insurance carriers to help find the perfect blend of coverages at the right price for you. But first, here's a bit of background on the insurance needs your business should consider.
Business Risks for Prefabricated Building Supply Stores
Insurance helps protect your business when the unexpected happens. If your prefabricated building supply store also offers delivery, then the risks extend out to the safety of your employees while off premises and still handling materials. You’re not only liable for their safety but for any damage they might cause to the property they’re delivering to.
Prefabricated stores must invest in insurance policies to protect their business assets from the following potential risks:
- 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
- Equipment damage
- Employee theft of cash or inventory
- Delivery driver involvement in automobile accidents
- Selling faulty products
- Employee lawsuits related to discrimination or other claims
- Cyber breaches
- Fire damage to landlord’s property
Coverage Options for Prefabricated Building Supply Stores
Like any retailer, prefabricated building supply stores have to protect their inventory from catastrophic loss. If a fire were to burn down your building and what's inside, everything you've worked for and all of your assets are gone within minutes. You must close for repairs and to rebuild, leading to immense income loss.
Equally important, you have to protect yourself and your store from lawsuits. Your business can be held responsible for injuries or property damage to others. Lawsuits and medical bills can easily put you out of business.
The proper insurance policy package addresses these risks.
- Building insurance: Just like its name suggests, this protects the actual building of your store. Should damage occur from extreme weather, natural disasters, vandalism or other similar events, your building insurance will help pay for repair costs. Even if you’re leasing your building, you’re still responsible to carry specific insurance.
- Property insurance: If you have a building, then you have stuff inside of it. Property insurance provides coverage for all of the contents within you building. This includes materials, inventory, computer systems, items in your office space, and the like.
- Premises liability insurance: If a customer slips and falls in your store they could sue you for their medical bills. Premises liability insurance protects you from third-party injuries that take place within the premises of your business. This includes the inside and the outside.
- Product liability insurance: This protects you if a product that you sell causes property damage or injury to another because of a design defect or production flaw.
- Auto liability insurance: Chances are your prefabricated building supply store offers delivery which means your employees are driving company vehicles. An auto liability plan provides protection for any business errands that are run using a company vehicle.
- Cyber liability insurance: Any business that collects customer data through a computer or online system is at risk of being hacked. Cyber liability insurance covers any financial loss from fraudulent activity, website hacking, or theft of your customers personal information, such as credit cards.
- Umbrella insurance: Because insurance companies impose caps on the amount of liability insurance they are willing to provide, umbrella insurance may be necessary if you feel that you need extra liability coverage in order to adequately protect your store. Umbrella insurance takes over where your other liability coverage leaves off.
What Additional Insurance Does My Prefabricated Building Supply Store Need?
In addition to property and liability insurance, there are a few additional insurance options you can discuss with your independent agent to see if they’re right for you.
- Workers' compensation insurance: Workers’ compensation is required in every state except for Texas. If an employee is injured on the job, it covers medical bills and paid time off as well as reduces the risk of being sued by your employee.
- Backup of Sewers and Drains Coverage: Not all flood-like damage is caused by flooding. Sewers or drains getting backed up or overflowing can cause water damage in the lower floors of your business. This special rider, which can be purchased as part of most commercial insurance policies, can cover these backups and overflows.
- Business Income Insurance: This provides coverage if your store is damaged and unable to earn money for a specified amount of time. This insurance will pay until the damage is repaired.
- Flood and earthquake insurance: Floods and earthquakes are not included in general commercial insurance policies. If your store is located somewhere that flooding or heavy rain is a concern, you’ll want to purchase this insurance.
- Health Insurance: If your business has at least 50 full-time employees, you are required to provide them with affordable health insurance. You insurance agent can help you find suitable coverage.
- Employment practices liability insurance: Also known as EPLI, this insurance provides coverage for your legal defense and potential financial damages if one of your employees sues your business for an illegal business practice such as sexual harassment, discrimination, or wrongful termination.
- Equipment breakdown coverage: Equipment breakdown insurance covers your losses when your equipment breaks down, whether due to malfunction, overheating, user error, or other cause. This can involve machinery, equipment, electrical systems and more.
- Inland marine insurance: If your store delivers materials to customers or is driving materials to jobsites, then inland marine insurance will protect your business from damage to the tools and equipment you’re transporting. Inland marine insurance can be beneficial to both large and small businesses. It not only protects your business property while it’s being transported, it also covers a customer’s property while it’s in your possession.
- Business owners policy (BOP) insurance is something that prefabricated building supply stores may want to consider if they qualify for it. BOPS are designed for small businesses and include liability, property and business income insurance in one affordable package policy.
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How Much Does Prefabricated Building Supply Store Insurance Cost?
As with any business, the cost of coverage for your prefabricated building supply store will depend on a number of factors. These include, but are not limited to:
- The size of your business
- The weather and crime risks in the city your store is located
- The value of your inventory and other business property
- The number of workers you employ
- Whether you offer additional services like delivery and installation
- The types of business insurance coverage you are purchasing
- How high you need your coverage limits to be
- Your store’s claims history
A local independent insurance agent can obtain a variety of customized quotes on your behalf. That way, you can be sure that the policies you select are offered to you at a reasonable price.
How to Find the Best Insurance for Your Prefabricated Building Supply Store
Insurance policies can be complex, and searching through options can be confusing, time-consuming, and frustrating. An independent insurance agent's role is to simplify the process.
An agent will help make a checklist of everything in your store that you’ll need coverage for. They’ll also keep in mind additional risks like moving materials inside and outside your store and delivery services.
When it comes time to purchase insurance, they’ll break down all the jargon and explain the nitty-gritty, so you understand exactly what you're getting.
And should you need to file a claim, you’re not alone. Your agent will be right there to help guide you through every last step and get your life back to where it all was. How great is that?
Why Online Quotes Aren’t Always the Best Way to Shop
Getting your insurance quotes online can be tempting. Sure, it’s fast and easy, but are the quotes you are getting actually accurate? And are you getting quotes for all the different types of coverage your business needs?
Online quotes cannot give you the whole picture. They often omit important coverage, which may result in you being unable to get compensation if something disastrous happens. And they can leave out cost-saving opportunities such as discounts and bundling opportunities that an independent agent can help you take advantage of.
Instead of getting an online quote, find an independent insurance agent near you, and schedule a one-on-one consultation to discuss your options for the best coverage for your prefabricated building supply store.
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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.
TrustedChoice.com Article | Reviewed by Paul Martin
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