Flag Shop Insurance

How to Insure Your Flag Shop

(Protecting your business has never been easier)

International flags in a row at flag shop

Flag shops sell a variety of flags, flagpoles, banners, and signs for residential and commercial purposes. Individuals, businesses, banks, municipalities, libraries, post offices, schools, teams, and special event organizers are the typical customers for a flag shop. 

Flag shops often do more than just sell flags and banners. Many will fabricate custom-made flags and banners on their premises. Some might offer installation services for flagpoles (typically up to a certain height), flags, and banners. If you own a flag shop, you might also sell flagpole parts and provide other services. 

Owning a flag shop offers you the luxury of running your own business, but you also have the serious responsibility of protecting your livelihood from the unique risks that threaten it. 

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. 

A local independent insurance agent can help you find customized business insurance solutions that help you protect your livelihood. 

Why Do I Need Flag Shop Insurance? 

Your store is exposed to a variety of unique risks that must be addressed with tailored business insurance policies. 

You have flammable fabric and vinyl inventory on hand at all times and a variety of essential equipment. One spark could quickly spread to your entire store, destroying everything.

You are also at risk of property damage due to a severe weather event, a burglary, or vandalism. If you want to stay in business after such an event, you’ve got to have the funds to pay for repairs and for replacing lost inventory, store fixtures, furniture, and supplies. 

And 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 flag shops 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 breach of your online store)
  • Property damage or injury caused by performing on-site or off-site repair services, installing custom flats or banners, or installing residential or commercial flagpoles

What Does Flag Shop Insurance Cover? 

Your flag shop insurance should be tailored to the unique risks that you face. One major risk is physical damage to your building or property caused by unexpected events like fires, lightning, tornadoes, wind, and 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.

You can purchase several basic insurance policies to cover these risks:

  • 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 (your building, if you own it). 

If you offer in-house flag design services, your property insurance will cover your computer design systems, appliques, large vinyl banners, industrial-sized printers, and anything in your store or design center if it is damaged by an unexpected event. 

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.

If, for example, a child is injured by pulling down a sample flag that is on display in your store, you can expect to pay for the child’s medical bills at least. 

If you are sued because of the incident, you’ll have to defend yourself and potentially pay out a financial settlement. A CGL policy protects you in these kinds of circumstances. 

What Other Types of Flag Shop Insurance Do I Need? 

You might also want to consider endorsements (coverage add-ons) to your basic business insurance 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 using a box cutter or unloading 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.

Coverage for Flag Installation and Repair Services

Many flag shops also offer flag, banner, and streamer installation services, as well as other services like flagpole repair, removal, and relocation. Some even offer flag and banner repair and re-roping services. 

If you offer any or all of these services, you have a variety of additional risks.

  • What if your installer damages a client’s home, personal property, or commercial property? 
  • What if the installer falls off a ladder at a client location (home, business, municipality) and is seriously injured? 
  • What if your tools, equipment, and materials are lost, stolen, or damaged while at a client location or en route to or from a job?
  • What if a flagpole that you’ve installed collapses after installation, falling on and damaging a nearby vehicle? What if it falls on a person and causes a serious injury or a death? 

In many of these situations you’ll be covered by one of your existing policies, such as your general liability policy or your commercial property policy. 

If an installer damages a customer’s home, vehicle, or commercial property or is responsible for an injury of a client or a passerby, your commercial general liability policy would respond. 

Your CGL policy would also likely cover you if one of your flagpoles collapsed due to poor workmanship or some other design defect or mistake on your part. 

If an installer or repair technician were injured while on a jobsite, your workers’ compensation insurance would cover the injuries and reimburse the employee for any time away from work. 

You’ll also need some additional policies or endorsements (coverage add-ons to existing policies) to be sure you have coverage in certain other situations. 

You probably have at least one if not multiple trucks or work vehicles that you use to transport tools, equipment, and employees to and from installations.

  • Commercial auto insurance covers your vehicles and drivers in the event of an accident or other types of vehicle damage. 
  • Commercial umbrella insurance can cover you for claims that exceed the limits of your other liability policies, including your commercial auto policy.
  • Inland marine insurance protects your equipment, tools, portable computer equipment, and other supplies from theft, loss, or damage while they are in transit to and from worksites. 

What is Bailee’s Coverage? 

What happens if you take a customer-owned flag or banner back to your shop to repair, and some kind of damage occurs while it is in your care, custody, or control? 

Because standard business property and liability policies cover only your own business property, you need special coverage for your customers’ property that is in your possession. 

  • Bailee’s coverage is an add-on to a business property policy that covers non-owned property that is stored at your store or is in your possession. It helps pay for damages and minimizes the financial implications for you and your customers if their property is damaged while in your control. Bailee’s coverage is specifically designed for businesses that take in the property of others and are expected to return it undamaged. 

If you offer repairs services that require you to take custody of someone else’s property, talk to your independent insurance agent about your need for this type of coverage. 

Cyber Liability Insurance for Flag Shops 

Almost every kind of business is at risk for some type of electronic data theft or cyber breach. And if you run an online flag store, you have an even greater set of risks. 

You can be targeted with 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 type of damage, cyber liability insurance helps to cover money lost and helps to pay for damages caused to your customers.

It also pays for your legal defense and other court costs if you are sued. 

How Much Does Flag Shop Insurance Cost? 

Insurance for flag shops can range from several hundreds of dollars per month to thousands. The costs to insure your individual business will depend on the size of your operation as well as the depth of the products and services you provide.

Your premiums are based on a variety of individual risk factors including: 

  • The size of your business
  • The location of your shop and any other buildings that you own or operate out of (office space, warehouse space)
  • The number of employees
  • The types of tools and specialized equipment you need to design, print, and install flags, banners, and flagpoles
  • How many trucks and drivers you have (if applicable)
  • The size and scope of the projects you take on 
  • The value of the inventory and other business property you keep on your premises
  • The types of coverage and amount of coverage that you need.

If you are a sole proprietor who only sells flags, and you do not offer flagpole installation or other services, you can expect to pay far less for your business insurance than a multi-store business with several showrooms, multiple employees, and a significant installation and repair business. 

Ultimately the types and amounts of coverage you need to adequately cover your risks will dictate the cost of your coverage. 

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 Insurance Agent

Our agents simplify the search process for finding the right flag 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.

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TrustedChoice.com Article | Reviewed by Paul Martin

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