In addition to selling new and used bikes, bicycle shops offer spare parts, accessories, equipment, and repair services. These specialty stores stay competitive with other bicycle sellers like big box stores because of their knowledgeable staff and bicycle expertise. Many serious bike enthusiasts turn to bicycle shops for assistance with keeping their bicycles well-maintained and at peak performance.
If you are the owner of a bicycle shop, you can help your business remain profitable covering it with the right business insurance products. A local independent insurance agent can help you obtain and compare customized quotes for all of your insurance coverage needs.
Why Does Your Bicycle Shop Need Insurance?
What if a customer is severely injured in your store while testing out the fit of a new bike and they sue for medical expenses and lost wages? What if a disaster like a tornado or a fire causes you to lose your entire inventory of bicycles? What if one of your workers suffers a significant injury while straightening a rim?
These are just a few of the potential risks you face as the owner of a bicycle shop. Fortunately, there are a wide range of insurance products that are designed to cover the various hazards that can affect your bottom line.
Local independent insurance agents can help you identify your bicycle shop’s various exposures and can recommend the right business insurance policies to cover against them. Talk to an insurance agent near you to learn more.
What Kinds of Property Insurance Do Bicycle Shops Need?
Bicycles aren’t cheap, and your store likely has a lot of expensive inventory in stock. You will want to be sure that you have coverage for all the property in your retail showroom as well as for any bikes, tools, and equipment that you may have stored in the back.
Some of the property insurance policies your local independent agent may want to discuss with you include:
- Commercial property insurance: This coverage is a standard part of any business insurance policy. It can include:
- Structural coverage: This pays for damages to the structure of the buildings in which your business is housed. It is necessary only if you own the building.
- Contents coverage: This covers your business assets including such things as inventory, computers, and outdoor signs.
- Bailee insurance: This can cover damage to your customers’ property when it is in your custody, care, or control. So, for example, if a customer entrusts you with repairing their grandfather’s vintage bicycle and it is irreparably damaged by an employee, this insurance would provide compensation to your customer.
- Flood insurance: Commercial property insurance nearly always excludes coverage against flood damage. Since a flood can cause significant damage to your store and your inventory, adding a commercial flood insurance policy to your coverage arsenal may prove to be a wise decision.
An independent insurance agent can give you more information about your various property coverage options.
What Kinds of Liability Insurance Do Bicycle Shops Need?
A liability lawsuit against your company can be financially draining. Even if the courts rule in your favor, your legal defense and time spent away from your business can prove quite costly. That is why liability insurance is arguably one of the most important parts of any business insurance policy.
Business liability insurance is designed to cover legal fees, court costs, damages, and other costs associated with covered liability lawsuits. Your insurance agent will likely talk to you about the following types of coverage.
- Product liability insurance: This is designed to cover your business against lawsuits related to defects in the products your bicycle shop sells.
- Premises liability insurance: This is designed to cover injuries or property damage sustained by customers or other visitors to your bicycle shop if they are involved in an accident on your business premises.
- Cyber liability insurance: This is designed to cover your company’s financial responsibilities if criminals place skimmers on your credit card readers or hackers break in your computer system and steal customer information such as financial personal data.
- Employment practices liability: This is designed to cover your business’s legal defense if a current, former, or potential employee accuses your bicycle shop of illegal business practices such as discrimination, harassment, breach of contract, or wrongful termination.
- Umbrella insurance: This is an affordable way to significantly boost the liability coverage limits for all of your commercial liability products.
These are not the only business liability products that are available to you. A local independent insurance agent can review your business operations with you and can recommend any other coverage that may be appropriate.
What Other Insurance Products Should You Consider for Your Bicycle shop?
There are additional business insurance products that you may want to learn more about. These include:
- Workers’ compensation insurance: This is designed to cover the cost of your employees’ medical treatments and lost wages if they are injured on the job. Depending on the number of people you employ, this may or may not be required in your state.
- Business interruption insurance: This is designed to provide your business with a continuation of income if it must remain closed for an extended time due to damages caused by a covered disaster like a tornado or a structure fire.
- Insurance for employee benefits: If you want to offer your employees life insurance or health insurance as part of an employee benefits package, you have several options that your insurance agent can review with you.
Learn more about each of these commercial insurance products by setting up an appointment with an insurance agent near you.
How Much Does Bicycle Shop Insurance Cost?
The cost of business insurance can vary from bicycle shop to another. Your rates will be based on a number of factors that include, but are not limited to:
- The weather risks and crime rate in the ZIP code where your business is located
- The size of your business and its annual revenues
- The average value of your inventory
- The number of employees you have
- The types and amount of coverage you are purchasing
- How long your bicycle shop has been in business and its claims history
A local independent insurance agent can help you find out how much a policy will cost you by contacting a variety of highly rated insurance companies and obtaining customized quotes on your behalf.
Why Let an Independent Agent Help You Find the Right Bicycle Shop Insurance?
Building a comprehensive business insurance plan can be complicated. Independent insurance agents make it simple. These agents can help identify the risks your particular business faces and can recommend appropriate insurance policies to cover against them.
Also, because they live and work your community, these local insurance agents are familiar with the risks faced by business owners in your city as well as with your state’s laws and insurance requirements. Contact an insurance agent near you to learn more.
The Lowdown on Online Quotes
A lot of people choose to obtain their insurance quotes online because it is easy and convenient. However, building a comprehensive set of business insurance policies can be complex, and when you shop online, you can never really be sure that all of your exposures are properly covered.
You know what is easy and convenient? Shopping with an independent insurance agent.
Not only can these agents recommend the right products for all of your business insurance coverage needs, they can also shop around to make sure you getting all of your policies at great prices. Schedule a one-on-one consultation with an insurance agent near you to learn more and get started.
TrustedChoice.com Article | Reviewed by Paul Martin
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