Owning an art supply store is probably the culmination of years of hard work and investment of your personal time and money. While you have the luxury of running your own business and selling the products that you love to your treasured customers, you also have the serious responsibility of protecting your livelihood from the unique risks that threaten it.
If you own an art supply store, you need to understand the types of risks that you face and how you can protect your assets and move forward even in the worst of times.
Business insurance tailored to your unique risks can help you recover from simple claims for slips and falls on your premises, and even from the complete devastation caused by a fire or a tornado.
An independent agent in your city can help you find customized business insurance solutions that help you protect your livelihood.
Why Do I Need Art Supply Store Insurance?
Your art supply store is exposed to a variety of unique risks that must be addressed with tailored business insurance policies.
You have expensive and highly flammable inventory on hand at all times, including wooden tables and easels, paints, oils, brushes, framing supplies, paper, canvases, and other media. One spark could quickly spread to your entire store, destroying everything you’ve built.
What’s more, a severe weather event, a burglary, or vandalism can diminish or entirely destroy your inventory, leaving you no option but to pay to replenish it if you want to stay in business.
And if someone is injured on your premises or as a result of using one of your products, you can be sure that a costly lawsuit is not far behind.
Unfortunately, your risks don’t end there. It’s not uncommon for an art supply store to experience:
- Shopping carts or store fixtures causing injury or property damage in the store or parking lot
- Loss of income due to a catastrophic or unexpected event
- Equipment damage or breakdown
- Employee theft of cash or inventory
- Employee lawsuits related to discrimination or other claims
- Cyber breaches (data breaches of your online store)
What Does Art Supply Store Insurance Cover?
Art supply store insurance should be tailored to the unique risks faced by your business. Your first major risk is physical damage to your building or property caused by unexpected events like fires, lightning, tornadoes, wind, or hail.
You also have a significant liability risk, which means that you are responsible for compensating any customer or member of the public who gets injured on your property or as a result of buying something from you.
Your art store supply insurance should be made up of several basic policies to cover these risks:
- With so many flammable items like paints, paint thinners, adhesives, and paper products on your property, your store is especially susceptible to fast-burning, devastating fires. Commercial property insurance covers your building and its contents, including computers and cash registers, inventory, equipment, furniture, fixtures, and more. It helps you rebuild or make repairs when unexpected events, like a fire or severe weather, destroy your merchandise and your physical space (structure).
- After a property loss, you’ll probably need some time to replace your inventory and fixtures, and repair or rebuild your store. Business interruption coverage compensates you for lost business income and pays for certain operating expenses if you must temporarily close after a covered loss.
- Liability insurance pays for claims of bodily injury and property damage to third parties due to your negligence. If you offer an on-site framing class and a participant is injured while using a hammer and nails that you provided, you’re likely to be responsible for paying for any resulting medical expenses. What’s more, if the injured party sues you, you’ll have to defend yourself and potentially pay out a financial settlement. A commercial general liability (CGL) policy protects you in these kinds of circumstances.
If you operate a single store or even several stores, you may be able to bundle your basic property and liability coverage together into a packaged policy (business owners policy, or BOP) designed for small business owners.
Other Coverage for Your Art Supply Store
You might also want to consider endorsements (coverage add-ons) to your basic art supply store insurance policies, or you might need some additional stand-alone policies that provide the following types of coverage:
- Commercial umbrella insurance provides excess liability protection to any of several other policies you might have. If a customer injury in your store leads to an expensive lawsuit that exceeds the limits of your commercial general liability policy, your commercial umbrella policy kicks in with higher coverage limits.
- Workers’ compensation insurance is typically required for any business that has employees. It pays for lost income and medical expenses for employees who are injured on the job. If an employee is injured while using a box cutter or sustains repetitive motion injuries from using the cash register, workers’ compensation insurance pays for related medical costs and compensates the employee for time away from work.
- Crime coverage protects your business if an employee or a group of employees engage in theft, forgery, or fraud that damages your business. It also offers coverage in cases of shoplifting and vandalism.
- Equipment breakdown coverage pays for costs associated with sudden and accidental breakdown of machinery and equipment, such as any equipment used for custom framing, and even your computers or cash registers. It covers the costs to repair or replace the equipment and any other property that is damaged by the broken equipment. It also reimburses you for related business interruption costs (your lost sales while the equipment is being repaired or replaced).
- Sign coverage pays for damage to outdoor signs that are not attached to your building when the damage is caused by weather, vandalism, fire, etc.
- Utility interruption coverage provides income protection if you are unable to operate due to a covered utility (water, electrical) interruption.
Cyber Liability Insurance for Art Supply Stores
Almost every kind of business is at risk for some type of electronic data theft or cyber breach. If you run an online art supply store, you can be targeted with credit card fraud or viruses.
And you could be the victim of a major cyberattack that exposes the sensitive information of your customers and suppliers, causing them to experience financial and reputational harm.
Cyber liability insurance protects you from the costs related to certain cybercrimes. If someone hacks into your website, steals personal financial data from you or your customers, or causes other types of damage, cyber liability insurance helps to cover money lost and helps to pay for damages caused to your customers.
Regardless of how a data breach happens, the costs can be devastating for your business. Just some of the costs associated with a data breach include:
- Legal requirements to notify individuals or business partners that their data may have been exposed
- Public relations costs necessary to repair your reputation
- Investigative costs to determine exactly how the breach happened and whose data has been exposed
- Loss of income and business interruption caused by the breach
- Providing credit monitoring services for those affected by the breach (e.g., for customers or suppliers whose data was compromised)
- Loss of income or business interruption for a customer or partner
- Ongoing public relations impact and loss of future business
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.
How Much Does Art Supply Store Insurance Cost?
A single-location art supply store might spend around $500 to $1,500 per year on general liability coverage alone.
But this is a broad estimate and does not include property coverage and any other types of policies or endorsements that you might need to fully cover your risks.
In addition, a variety of individual risk factors will influence how much you pay to cover your art supply store. These include the location of your store, the number of employees you have, and the coverage limits and deductibles that you choose.
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 art supply store insurance. They’ll walk you through some 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.
TrustedChoice.com Article | Reviewed by Paul Martin
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