Owning a candle store can be a rewarding way to make a living while surrounded by beautiful candles that add ambiance and enjoyment to any space.
But even a simple, single-location candle store can face serious risks that can send your dreams and your business up in smoke. Whether a customer trips and falls in your store or a faulty candle leads to a devastating house fire, you need business insurance to ensure you’re protected from the many risk exposures that you face every day.
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 insurance agent in your city can help you find customized business insurance solutions that help you protect your livelihood.
Why Do I Need Candle Store Insurance?
Your candle store is exposed to a variety of unique risks that must be addressed with tailored business insurance policies.
By its nature, your products involve the use of flames. If one of your products is faulty and leads to a house fire or even if someone is burned by a burning candle in your store, you’ll have to answer for any injuries or property damage that results.
What’s more, your store itself is at an increased risk for a devastating fire if you regularly burn candles to showcase your products. Even a small fire could cause enough damage to force you to close to make repairs and replace inventory.
And no matter where you are located or what you sell, 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.
If someone is injured on your premises or as a result of using one of your products, you can be assured that a costly lawsuit is not far behind.
Unfortunately, your risks don’t end there. It’s not uncommon for a candle 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
- Employee theft of cash or inventory
- Employee lawsuits related to discrimination or other claims
- Cyber breaches (data breaches of your online store)
What Does Candle Store Insurance Cover?
Candle store insurance should be tailored to the unique risks faced by your business. First, consider the risk to your building or business property caused by unexpected events like fires, lightning, tornadoes, wind, and hail.
Next, be sure to address your significant liability risks. You’re 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.
Therefore, your candle store insurance should be made up of several basic policies to cover these risks:
- With so many flammable items on hand, as well as the possibility for open flames on your display shelves, your store is especially susceptible to 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, if you own it).
- After a property loss, you’ll likely need some time to replace your inventory and fixtures and 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, for example, you offer an on-site candle making class and a participant is burned by hot wax or becomes ill from being exposed to a fragrance or scented oil, you’ll likely 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 businesses owners.
You might also want to consider a variety of endorsements (coverage add-ons) to your basic property and liability policies, or you might need some additional standalone 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 that are injured on the job. If an employee is injured while simply lighting a candle or when lifting a box to unload a shipment, 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.
- 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.
Why Do Candle Stores Need Product Liability Insurance?
Candle stores sell candles, of course, and may sell a variety of other decorative items as well. You may make some candles yourself, and you likely purchase much of your inventory from a variety of suppliers and manufacturers.
Do you know that you do not need to manufacture a product to be considered liable if a product causes some type of property damage, illness, or injury to a customer or bystander?
If any product that you sell is faulty and leads to an injury or death, your business could be sued for negligence. 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 purchased in your store.
If you are sued in such a case, the resulting payouts for medical costs, compensatory damages, economic damage, attorney fees, court costs, and even punitive damages can be insurmountable for a small business.
Your commercial general liability insurance contains product liability coverage. Ask your independent insurance agent if your candle shop needs coverage for circumstances that are excluded from your CGL policy.
How Much Does Candle Store Insurance Cost?
A single-location candle 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 candle 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 candle store insurance. They’ll walk you through the handpicked policy options and explain the details and options.
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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