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Wood Flooring Store Insurance

Knock on Wood: Insurance for Your Wood Flooring Store

Christina Palermo | January 25, 2020
Wood flooring store insurance

According to the National Association of Realtors, around 54% of home buyers are willing to pay more for a home with hardwood flooring. Some realtors estimate that a residential property’s value increases by as much as $10,000 when wood floors are installed. Consumers have a number of options when shopping for wood flooring. They can visit a brand name home improvement store, a flooring warehouse or liquidator, or a locally owned wood flooring store. Owners of all specialty stores, including wood flooring shops, must be sure to protect their business with a robust commercial insurance package. Independent insurance agents can identify the best coverage and cost for your small business needs.  

2019 Wood Flooring Store Statistics From IBISWorld.com

  • Wood flooring revenue grew to $3 billion per year (USD)
  • Wood floor manufacturing has steadily increased by 1.9% annually (2015-2019)
  • There are 130,466 flooring installers nationwide, including hardwood floor installers

What Can Happen in a Wood Flooring Store?

Although very few serious accidents or issues may arise in a wood flooring store, they can certainly happen. It only takes one unfortunate injury or issue to devastate a small, family-owned floor covering store. For this reason, it’s vital that you have the best insurance coverage written to safeguard your wood flooring store should something unexpected occur. 

Without the right business insurance, how would your flooring store be able to manage the following situations? 

  • A broken water pipe in a neighboring shop spreads to your warehouse. Part  of your inventory is ruined, while the rest of the wood flooring now smells like mildew and can’t be sold.
  • An installer claims they were denied a management position because of discriminatory practices so they file a complaint against your flooring store. Perhaps the accusation is misleading, but you’ll still have to pay for a lawyer to help defend against the claim.
  • A family is walking through your warehouse looking for the perfect dark bamboo hardwood flooring. The small children are running and playing on the stacks of flooring materials, and one of them falls. This accident causes a broken arm and lots of medical bills, which prompts Mom and Dad to sue your store. 

Lay Down the Best Property Coverage

Your store location, including your hardwood flooring inventory, is probably your company’s biggest investment. It’s critical that you have the right amount of insurance to help you when there’s a loss. 

  • Building insurance: This coverage is useful if you own the commercial property in which your wood flooring store operates. This policy gives you compensation for damage to the building structure and critical systems within the property (e.g., furnace, central air, sprinklers). Standard building insurance covers destruction caused by things like wind, fire, hail, lightning, and vandalism. 
  • Property insurance: This policy is meant for all property owned by the store and kept on the premises, like wood flooring materials, equipment, cash registers, and computers. Any additional wood flooring stored at an off-site location will need its own separate property policy. 
  • Flood insurance: Nearly 100% of the time a commercial insurance policy will exclude protections against flooding. If your floor covering store is at risk, you should chat with an independent insurance agent about getting a commercial flood plan through the National Flood Insurance Program. 
  • Drain and sewer backup insurance: Not all water damage is caused by a natural disaster or flood waters. If your wood flooring warehouse is situated at or below ground level, you could be at a higher risk for sewer or drain backups. This business coverage also provides assistance for any water damage resulting from sump pump failures, which can happen when there’s an extended blackout. 

Get to Know Liability Insurance for Your Flooring Store

Regardless of how well you operate, a liability lawsuit can still happen when you least expect it and for surprising reasons. Even if your business did nothing wrong, a claim can be filed against your company and it must be resolved. This means your business will have to spend money to defend against the accusations. Liability insurance protects your flooring store from large financial losses. This policy will provide money for your court costs, legal fees, and any financial damages awarded to the other party. These liability insurance products may be of use to your business: 

  • Premises insurance: Meant to protect your business if someone is harmed or has property damage while visiting your wood flooring store. Customers shopping for hardwood flooring may linger for quite a while, which increases the opportunity for an accident. 
  • Product insurance: If a client, vendor, or other third party becomes ill or gets injured by a product you sold, your flooring store may be named in a liability lawsuit. This coverage will help keep your business covered. 
  • Employment practices liability insurance (EPLI): When a current (or former) employee accuses your store of acting in an illegal manner, then you’ll want ELPI on your side. Claims of sexual harassment, wrongful termination, or discrimination would fall under this policy. 
  • Cyber liability insurance: Hackers regularly break into retailer networks to access the personal and financial data of their shoppers. Other criminals are bold enough to install skimmers in store credit card readers so they can steal customer data that way. Any financial losses related to these types of situations would be covered by cyber liability insurance. 

What Additional Coverage Does Your Wood Flooring Store Need?

Besides liability and property coverages, there are lots of other unique types of business insurance to discuss with your independent insurance agent. 

  • Business income insurance: Shutting down your floor covering shop for an extended period could really put the hurt on your business finances. This insurance helps you to keep up with regular expenses until normal operations resume.
  • Workers’ compensation insurance: The majority of US states require a business to purchase workers’ compensation insurance. This is because work comp pays for medical care related to injuries an employee got while on the job. This policy significantly lowers the chances your business will be slapped with a lawsuit from the hurt employee. 
  • Employee dishonesty insurance: No matter how hard you try, sometimes a dishonest employee still gets hired. Once that team member begins to act in a dishonest manner by embezzling cash, stealing materials, or other similar acts, it’s time to rely on this plan. You can file a claim under this policy to recoup any money lost as a result of the employee’s activity. 

Help for Installing a Wood Flooring Store Insurance Portfolio

Being positive you’re buying the best business insurance for your floor covering shop can be a complicated process, especially if you’re a new business owner. It’s always helpful to speak with an independent insurance agent. These agents can help you determine your exposures and then shop for a competitively priced plan that meets your coverage needs. Find an insurance agent near you to learn more about the right insurance for your wood flooring store.

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