A Christmas store sells a variety of Christmas and holiday-related goods, from ornaments and collectibles to outdoor décor, personalized items, housewares, and Christmas trees and accessories. These unique shops are often located in tourist towns, busy shopping districts, large malls, or stand-alone buildings.
Christmas stores have a wide variety of local customers and as well as visitors hoping to remember their stay in town. They often carry a large inventory of unique items of varying values.
Owning a Christmas store is very rewarding. If you own one you must be concerned about protecting your investment from the risks that are inherent in your business. Unexpected events can lead to serious losses and may even jeopardize your ability to stay in business.
Why Do I Need Christmas Store Insurance?
Christmas store insurance helps you avoid financial devastation after an unexpected event causes some kind of damage to your business. Consider all of the things that could go wrong (and result in serious repair costs, loss of income, or a lawsuit) during the course of your workday.
- Accidents, such as slips, trips, and falls in the store or parking lot
- Damage to your inventory due to some catastrophic or unexpected event (careless shoppers, fire, smoke, weather, vandalism, etc.)
- Damage to your building, computer systems, fixtures, and furniture due to fire, smoke, water, or weather
- Loss of income due to a catastrophic or unexpected event (a fire damages part of your store, forcing you to close while repairs are made)
- Shoplifting and employee theft of cash or inventory
- Selling faulty products
- Employee injuries
- Employee lawsuits related to discrimination or other claims
- Delivery drivers involved in automobile accidents
- Cyber breaches
- Fire damage to landlord’s property
What Does Christmas Store Insurance Cover?
Christmas store insurance should cover the unique risks you face in your store. This includes physical damage to your building or property, as well as your responsibility to financially compensate any customers or members of the public that get injured on your property or as a result of buying something from you.
With a few commercial insurance policies tailored to your needs, you can get the peace of mind you need.
- Commercial property insurance is essential for retail proprietors who own their buildings or whose business handles a large volume of expensive inventory. Business property insurance protects you if a fire, vandalism, smoke, theft, or other covered event damages your property. It provides coverage for lost inventory, office equipment, computers, fixtures, furniture, and more.
- Commercial general liability (CGL) insurance is critical for any retailer. It protects you from costs related to bodily injury or property damage that you or your employees cause to third parties (e.g., a customer is injured in your store, or an employee damages a customer’s car while collecting carts in the parking lot). CGL policies also cover your defense costs, court costs, and any court-ordered judgments that you must pay if the injured party sues you.
Commercial property insurance policies usually include business interruption coverage, or business income coverage, which protects your earnings if your business is unable to operate because of damage caused by some type of disruption (fire, hail, wind, equipment breakdown).
This coverage is usually quite affordable and will be invaluable if you are forced to close your doors for some time in order to make repairs. It pays for rent, employee salaries, lost income, relocation fees, and more.
You can expand your business interruption policy to include coverage for breakdowns in utility services (water, electrical) that force you to temporarily close your doors.
Owners of Christmas stores may want to consider a business owners policy (BOP) if they qualify for one. BOPs are designed for small businesses and include liability, property, and business income insurance in one affordable package policy.
Avoid Gaps in Coverage with a Tailored Christmas Store Policy
Does your Christmas store deliver trees or outdoor decorations right to your customers’ homes? If so, you need commercial auto insurance. This covers your company’s vehicles (cars, SUVs, vans and trucks) and drivers if they are damaged or injured in a collision or some other type of event.
In addition, if you or your employees drive personal vehicles for business purposes, you must have non-owned or hired auto liability coverage to protect your company if an employee is an accident while driving a personal vehicle.
Commercial auto insurance is customized to cover your specific company vehicles and how they are used.
Some other insurance policies you might need for your Christmas store include:
- 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.
- Crime coverage protects your business from any number of crimes that could be committed in your Christmas store. This includes vandalism, shoplifting, and employee theft or embezzlement.
- 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.
- Employment practices liability insurance covers you if an employee sues you for discriminatory employment practices.
The Importance of Product Liability Coverage for Christmas Stores
Christmas stores sell a variety of products that could potentially cause injuries or property damage to a user or a bystander. It’s not uncommon for Christmas trees, string lights, and other electrical holiday decorations to be the source of devastating house fires.
In fact, according to the National Fire Protection Association:
- Home fires that began with Christmas trees resulted in 4 deaths, 15 injuries, and $12 million in direct property damage from 2012 to 2016.
- During that period, one of every 45 Christmas tree fires resulted in a death.
- Electrical or lighting equipment was involved in 43% of Christmas tree fires from 2012 to 2016.
Don’t be fooled into thinking that only manufacturers of Christmas lights or other decorations need product liability coverage. If a Christmas tree, string lights, or another product that you sell is faulty and leads to an injury or the death of a customer, user, or bystander, your business could be held liable.
Any company that participates in bringing a faulty product to market can be included in a lawsuit and required to pay damages to the user.
The resulting payouts for medical costs, property repairs, compensatory damages, economic damage, attorney fees, court costs, and even punitive damages can be insurmountable for a small business.
Product liability insurance covers a business’s financial responsibility for losses or injuries to a user, buyer, or bystander caused by a defect or malfunction of a product. Your CGL policy or BOP might cover some product liability claims, but that coverage may be limited and insufficient for your needs.
Your independent insurance agent can help you determine if you need to purchase additional product liability protection for your Christmas store.
How Much Does Christmas Store Insurance Cost?
The cost to cover your Christmas store with a comprehensive business insurance program will vary depending on:
- The size of your store
- Your store’s location
- The number of employees you have
- The types of products you sell
- The value of your inventory
- The types of coverage and the coverage limits that you require
- The crime and weather risk in your city
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 Christmas store insurance. They’ll walk you through some 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 leave out 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.
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