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Tool Store Insurance

Finding the Best Tool Store Insurance

Ann Herro | February 12, 2020

Tool stores sell a wide range of tools and accessories for home or work use including power tools, hand tools, air tools, machinery, safety equipment, tool accessories, and other work gear. 

Owning your tool store can leave you vulnerable to some unexpected, and costly, events. 

You’ve got a lot invested in your store. Why leave anything to chance? Would you be able to recover if a storm, a fire, theft, or a lawsuit impacted your store? 

With the right business insurance, it’s actually pretty easy to protect your tool store from risks that can threaten your profitability or lead to bankruptcy. A local independent insurance agent can help you find a comprehensive set of business insurance plans designed for businesses like yours.

Why Do You Need Tool Store Insurance? 

Like any retail store owner, you face a lot of risks, including the following.

  • Property damage: Your building and everything inside of it, including inventory, computers, furniture, fixtures, and office space can be damaged in a variety of ways. A severe storm, for example, can cause widespread damage to the outside and inside of your tool store. And even a small fire can destroy valuable inventory and force you to close while you make repairs and replace damaged property. 
  • Theft and crime: Retail establishments are particularly susceptible to theft and crime from outsiders as well as from employees. You might have a lot of cash on hand, making you an easy target for thieves and dishonest employees. 
  • Customer or general public injury: Your store has a wide variety of visitors every day. Simple slip and fall injuries are common in your environment, and more serious injuries can occur too. And in the worst-case scenario, you won’t just be responsible for direct medical bills for the injured party. You could be sued and forced to pay for your legal defense as well as financial payouts to the injured person or person(s). 
  • Employee work-related injuries: Whether your employees are unloading shipments and stocking shelves or simply working the cash register, injuries can happen at any time. If an employee sustains a work-related injury or illness, you’ll be responsible for paying for their medical bills and lost wages if they have to take time off from work to recover. 

Tool store insurance can help cover your losses in these and many other situations. 

What Does Tool Store Property Insurance Cover? 

Property losses are one of the biggest threats to your tool store. These losses can come a variety of sources, such as:

  • A fire in your store could cause complete destruction of your business.
  • A fire in an adjacent store could cause smoke or water damage and destroy your inventory. 
  • Severe weather like a tornado can level a building. A severe thunderstorm can force a tree through your storefront window. A lightning strike could destroy all of your electronic equipment. 

Commercial property insurance covers the costs of repairing or replacing damaged or destroyed physical assets, such as your actual store structure (if you own your building) and its contents, such as computers, fixtures, inventory, artwork, furnishings, display shelves, and more. 

What is Business Interruption Insurance? 

When your business sustains property damage, you can also face loss of income if the damage renders you unable to operate or meet sales goals for a period of time while you make repairs, rebuild your store, or replace lost inventory. 

Business interruption insurance complements your commercial property coverage. Imagine you have a period of business interruption due to a covered loss (e.g., a lightning strike that makes your cash registers useless for an entire weekend). You might never recover the lost sales and your future could be in jeopardy. 

But business interruption coverage, or business income coverage, protects your earnings if your business must temporarily close because of damage caused by some type of disruption (fire, hail, wind, equipment breakdown). This coverage is usually quite affordable and pays for rent, employee salaries, lost income, relocation fees, and more. 

What Does Tool Store Liability Insurance Cover? 

If someone is injured in your store or as a result of your business operations, chances are you’ll be responsible for paying for any medical expenses for the injured party. While it may sound surprising, there are numerous ways that someone can get injured in your store. 

“Trip and fall” injuries are common in retail settings. Medical expenses can be costly enough in these situations. If you are sued for additional damages, the costs can be insurmountable for a small business.

That’s where your commercial general liability insurance comes in. It offers broad coverage for all kinds of liability claims, and pays the expenses for the injured party as well as your legal expenses and settlements or judgments if you are sued. 

Why Do You Need Product Liability Insurance? 

Tool stores sell a variety of products, some of which may be faulty or inherently dangerous if not used properly. Your customers purchase products from you with the reasonable expectation that they will work as promised. And if a product is dangerous, it’s up to you and the manufacturer to provide ample warning and appropriate safety instructions. 

Any company that participates in bringing a faulty product to market can be included in a lawsuit and held liable for damages to the user.

What if you sell an electric tool that is faulty causes a fire? What if you sell nail gun with a faulty locking mechanism, and a child is injured as a result? If any one of your products causes property damage or injures a user or bystander because it doesn’t work properly or it fails altogether, you could be held accountable simply because you sold the product. 

You can be sued and required to pay for medical costs, compensatory damages, attorney fees, court costs, and more. 

Product liability insurance covers your financial responsibility for losses or injuries to a user, buyer, or bystander caused by a defect or malfunction of a product that you sell. Your general liability policy might cover some product liability claims, but that coverage may be limited and insufficient for your needs. 

You’ll have some product liability insurance included in your general liability policy, but you might need to extend your coverage. An independent agent who has experience working with companies like yours can help you determine how much and what type of product liability coverage you need. 

Do You Need Cyber Liability Insurance for Your Tool Store?

Do you sell tools online in addition to your brick-and-mortar store? Talk to your independent insurance agent about the special risks you face and how cyber liability insurance can help. 

In general, cyber liability insurance protects you from the costs related to certain cyber crimes. If someone hacks into your website, steals personal financial data from you or your customers, or causes other type of damage, cyber liability insurance helps to cover money lost and helps to pay for damage caused to your customers.

Cyber liability insurance typically covers defense costs, settlements, and judgments related to a cyber liability lawsuit. Cyber liability insurance also covers public relations and other related expenses that you incur in order to salvage your reputation. 

You can add cyber liability coverage to a business owners policy or a commercial general liability policy, or you can purchase stand-alone coverage. Your independent insurance agent can help you determine what type of coverage is best for your business. 

What Other Coverage Do You Need for Your Tool Store?

You’ll likely need a variety of additional insurance policies or policy endorsements (add-ons to another policy such as your general liability policy or commercial property policy) to round out your coverage. 

Talk to your independent insurance agent about your need for:

How Much Does Tool Store Insurance Cost? 

Tool store insurance costs will differ from store to store. Your costs will likely 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 inventory, whether or not you own your building, and many more variables. 

The amount of coverage you need and the deductibles you choose also impact your tool store insurance rates. 

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 tool store insurance. They’ll walk you through the handpicked policy options and explain the details.

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. 

Now, who's ready to get their insurance problems solved?