Fabric shops specialize in selling a wide variety of fabrics for clothing and home décor, from organza and lace to fleece and flannel. If you own a fabric store, you might also offer buttons, elastic, threads, zippers, and a variety of specialty notions, patterns, and sewing and craft books.
Owning any type of small business comes with a great deal of risk. And part of your job as a fabric shop owner is to protect your business with appropriate business insurance.
An independent insurance agent can help you find coverage that is tailored to the unique risks of your store, giving you the peace of mind you need to focus on running your business.
Why Do You Need Fabric Shop Insurance?
Owning a fabric shop is certainly not the riskiest small business endeavor you can undertake. But every business has unique risks, and it’s important to invest in quality business insurance to protect your assets when something threatens them.
Simply put, your fabric shop insurance helps you mitigate your business risks. If a fire damages your shop or a customer sues you after a slip and fall incident in your store, your business insurance helps you pay for the damage and helps you get back on your feet.
If one of your customers is injured by something as simple as tripping over a step stool left in an aisle, you could be on the hook for thousands of dollars in medical expenses, or worse. There’s always the possibility that the customer will sue you for additional damages.
Shoplifting and employee crime can be a huge problem in any retail environment as well, and even a small cash theft can have serious repercussions for a small business like yours.
What’s more, smoke, fires, severe weather, equipment problems, and more can lead to hefty repair costs. And in the worst case, a major disaster can force you to close while you replace inventory, rebuild a damaged building, or wait for equipment to be fixed.
Fabric shop insurance helps you in a variety of situations that might otherwise force you out of business.
What Does Fabric Shop Property Insurance Cover?
Unexpected events such as fires, natural disasters, floods, and extreme weather can happen at any time. Where would you turn to pay for the losses to your physical assets (your building if you own it, inventory, computers, fixtures, furnishings, etc.) if one of these events damaged your fabric shop?
Commercial property insurance covers the costs of repairing or replacing damaged or destroyed business property. Your entire fabric inventory could be destroyed by smoke, fire, or water, making this coverage essential to securing your ability to operate in the face of a disaster.
If your fabric shop sustains physical damage due to a covered event, you’ll likely also face a loss of income if the damage forces you to close while you make repairs, rebuild your store, or replace lost inventory.
That’s why you also need business interruption insurance to complement your property coverage. It offers income protection if your business is unable to operate because of damage caused by some type of covered disruption. It also pays for certain ongoing fixed expenses during the rebuilding period. This includes things like rent, employee salaries, relocation fees, and more.
What Does Fabric Shop Liability Insurance Cover?
Customers, vendors, and members of the general public visit your store every day. If someone is injured as a result of shopping in your store, you are responsible for paying for any related medical expenses. And slips, trips, falls, and other types of injuries are very common in retail settings.
In the worst-case scenario, the injured party might sue you for additional damages. Even if the lawsuit is unfounded, you’ll incur attorney fees and other legal expenses just to defend yourself. If the injured party is awarded a financial payout, how would you find the funds? Would you be forced to declare bankruptcy?
That’s where your commercial general liability insurance comes in. It offers broad coverage for all kinds of liability claims, and pays for expenses for the injured party as well as your legal expenses and settlements or judgments if you are sued.
Keep in mind that if your store holds classes or provides a special space for birthday parties or other private gatherings, your liability risk is even greater. It’s important to discuss every aspect of your operations with your independent insurance agent, so you can be sure you have the right coverage for your unique business.
Do You Need Any Other Fabric Store Insurance?
Most small businesses need more than just property insurance and liability insurance. While these are the basic building blocks of any appropriate business insurance program, you’ll likely have to consider a variety of coverage add-ons and additional policies to make sure you’ve left nothing to chance.
Fabric shops should consider these additional types of business insurance to complete their business insurance program.
- Workers’ compensation insurance is required by law for any business that has employees. Your employees may be exposed to injuries caused by lifting heavy boxes, climbing ladders, using sharp instruments or sewing machines, and even from standing on their feet for long hours. Workers’ compensation insurance covers the costs of work-related injuries and illnesses, and provides income protection if an injured employee must take time off of work to recover.
- Commercial umbrella insurance, or excess liability coverage, provides supplemental liability protection beyond the limits of certain other liability policies.
- Employment practices liability insurance covers you if an employee sues you for discriminatory employment practices.
- If you live in a flood prone area, you may need flood insurance. Flood insurance is available only from the National Flood Insurance Program, but your independent insurance agent can obtain quotes and coverage on your behalf.
- Crime coverage pays for loss of inventory due to theft of merchandise from shoplifting, and even for loss of money and merchandise stolen by employees.
- Cyber liability insurance is important for any business that uses, transmits, or stores electronic data. And if you sell fabrics online in addition to your brick and mortar store, this coverage becomes essential. It pays for certain costs related to a cyber breach as well as any related legal costs if a customer or supplier who was harmed by the breach sues you.
How Much Does Fabric Shop Insurance Cost?
Fabric shop insurance might cost several hundred to several thousand dollars per year for liability coverage alone. Your costs will likely be higher or lower than average depending on the unique characteristics of your business such as the location, the number of employees, how much inventory you keep on hand, whether or not you own your building, and many more variables.
The amount of coverage you need and the deductibles you choose also impact your fabric shop insurance costs.
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 fabric shop insurance. They’ll walk you through the 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.