Sewing Stores

The Perfect Backup Plan for Your Sewing or Craft Store

Craft and sewing stores are a staple in American society. Many people enjoy making decorations for their homes, sewing their own clothes and draperies, and doing crafts to pass the time. These stores provide them with the supplies they need to do these jobs. If you own a craft or sewing store, you will want to be sure to protect the investment you have made in your business by purchasing a solid commercial insurance policy designed specifically for your store.

2014 Craft and Sewing Store Industry Facts From IBIS World

  • There are more than 20,200 fabric, craft and sewing stores operating in the United States.
  • These stores are responsible for employing more than 60,000 people.
  • This industry generates approximately $5 billion in revenue each year.

Why Is Commercial Insurance So Important for Your Craft or Sewing Store?

Just like any other retail businesses, fabric, sewing and craft stores face a number of potential risks that can result in significant financial losses. A well-crafted business insurance package can help to mitigate these risks so that your business can maintain its profitability. Commercial insurance protects your business-owned property and protects your store from losses brought about by potential lawsuits. Fabric, craft and sewing stores are not considered high-risk retail establishments by the insurance industry, so it should be easy for an independent agent to find a number of competitively priced policies for your review.

Be Sure You Have Sufficient Property Damage Coverage

Property insurance for your business covers the building in which your store is located, which is necessary only if you own the building. If you lease your store space, your landlord may require to you show proof of business insurance as a condition of your lease. Whether or not you own the building, you will need the contents insurance afforded by your policy, which covers your store’s merchandise, inventory, shelving, equipment, décor and other items owned by and kept inside the store.

There are instances where it may be necessary to purchase supplemental insurance coverage to adequately protect your business property from potential losses. Some coverage types you may want to consider include the following:

  • Flood insurance: It is extremely rare for a commercial insurance policy to cover damage caused by floods. To get this coverage, you will need a commercial flood insurance policy, which your agent can help you purchase through the NFIP.
  • Backup of sewers and drains coverage: Not all water damage is caused by floods. Sewers and drains can back up or overflow, and this can cause water damage in the lower floors of your establishment. To get coverage, this special rider can be purchased as part of most commercial insurance policies.
  • Earthquake and hurricane insurance: Some parts of the country are at significant risk for perils such as earthquakes and hurricanes. Because damage from these events can be devastating, you may need to purchase a supplemental policy specifically to cover against these hazards. Your agent can help you determine whether these types of coverage are a good idea for your particular business.
  • Inland marine insurance: If your store rents out sewing or crafting equipment, or if you have a warehouse from which you transport merchandise to your store, you may need this additional coverage. Your agent can help you determine if this coverage is necessary for your particular store.

Protect Your Fabric, Craft or Sewing Store From Potential Lawsuits

In today’s litigious society, it is important that you protect your fabric, craft or sewing store from potential lawsuits with your commercial insurance policy. Even if your business is not at fault in a liability lawsuit, you can still face financial losses paying for your legal defense.

Fortunately, the general liability coverage provided by your business insurance policy covers legal fees, court costs and financial damages for covered events such as slip-and-fall accidents in your retail establishment. If your store hosts classes or provides space for gatherings such as birthday parties, this coverage can increase your liability risk, so it is important that you reveal this to your insurance agent to ensure that your coverage is suitable.

Other coverage that may be of interest to you includes the following:

  • Workers' compensation insurance: If an employee is injured on the job, you are responsible for covering their medical treatments, which can at times be quite expensive. This coverage, which is required in most states, covers these costs.
  • Employment practices liability insurance: If an employee of your company perceives that  they have been wronged as the result of your business having engaged in illegal practices such as discrimination or harassment, they may sue your company. Employment practices liability insurance provides coverage for legal defense and financial damages.
  • Employee dishonesty insurance: Unfortunately, employees sometime commit crimes. This coverage can be of benefit if a an employee steals from your business or engages in other illegal activity while on the clock.

Other Ways Business Insurance Can Protect Your Fabric, Craft or Sewing Store

One of the best ways a commercial insurance policy can protect your business is through business interruption insurance. This coverage provides your business with a continuation of income if your fabric, craft or sewing store is forced to close for a temporary, but extended, period of time due to damage caused by a covered event. This continued income can enable you to continue paying key employees as well as cover monthly expenses until your business can resume normal operations.

There are other types of insurance coverage that you may want to consider. A qualified insurance agent can help you identify coverage types that may be of benefit to your business such as key-man life insurance, which protects you if you have opened your business with a partner or partners.

Get Help Building Your Fabric, Craft or Sewing Store Insurance Policy

Purchasing an ideal policy package for your fabric, craft or sewing store does not need to be a complex process. An independent agent in the Trusted Choice® network can work with you to simplify the process. These agents are free to work with a number of different insurance companies so they can build a competitively priced and suitable policy for your business. Find a Trusted Choice agent near you to learn more about commercial insurance packages for your fabric, craft or sewing store.


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