A classic hobby store is filled with crafts, supplies, and magazines for model airplanes, trains, ship models, and other toys, and nothing needs protection like a collection of classic items. But where do you start? With an independent insurance agent, that’s who.
An independent insurance agent's job is to make finding business insurance as convenient as possible. They’ll shop multiple carriers and present you with comprehensive insurance options that will cover all aspects of your hobby store. But before we go there, here’s some more information on the types of coverage you should need for your hobby store.
What Risks Does a Hobby Store Face?
Every store faces risks, and a hobby store is most likely home to a variety of materials and supplies that have limited availability. People shop hobby stores for very specific needs, making every product you offer very valuable. The main risks worth thinking about include:
- Protecting your products: Every store will cater to different hobbies, and some hobbies can get expensive. You’ll want insurance that not only protects your products if they are damaged or burglarized, but also if a potential client should accidentally break something in your store.
- Someone is injured on your property or from your products: Crafts and supplies for airplanes, boats, and trains can have sharp edges. Every business runs the risk of a slip and fall on property, so protecting yourself if someone is injured on your property or by your products is crucial.
There are some additional risks that all businesses face, which are discussed below.
What Types of Insurance Does a Hobby Store Need?
At its core, a hobby store doesn’t differ much from other retail businesses in the aspects of its business that need protection.
Every storefront needs property insurance to protect from events that could take place inside and outside your store. In addition, hobby store owners need to think about the materials inside their store and any additional services they may offer, like delivery or product testing.
What Does Hobby Store Insurance Cover?
The following is a list of common business insurance policies that cover a variety of property and liability risks.
- Building insurance: This protects the structure of your store should it be damaged by unexpected environmental events like wind, fire, lightning, or vandalism.
- Property insurance: This insurance covers any damage to the products inside your store should they be damaged by unforeseen hazardous weather, flood, fire, and natural disasters.
- Premises liability insurance: This provides coverage if a customer is injured on the premises of your company. This can be a slip and fall in the parking lot or a stumble down a flight of stairs.
- Product liability insurance: This provides coverage should a third party get injured swinging inside your store.
- Cyber liability insurance: This covers any financial loss from fraudulent activity, website hacking, or theft of your customers' personal information such as credit cards.
- Umbrella insurance: Because insurance companies impose caps on the amount of liability insurance they are willing to provide, umbrella insurance may be necessary if you feel that you need extra liability coverage in order to adequately protect your store. Umbrella insurance takes over where your other liability coverage leaves off.
What Additional Insurance Coverages Does My Hobby Store Need?
There are a few additional business policies you can discuss with your independent agent to see if they’re right for your hobby store.
- Workers' compensation insurance: Workers’ compensation is required in every state except Texas. If an employee is injured on the job, it covers medical bills and paid time off, and reduces the risk of being sued by your employee.
- Business income insurance: This provides coverage if your store is damaged and unable to earn money for a specified amount of time. This insurance will pay until the damage is repaired.
- Flood and earthquake insurance: Floods and earthquakes are not included in general commercial insurance policies. This insurance can help protect you if one of these disasters damages your store.
- Crime insurance: With unique materials and supplies in your store, you’re at risk for shoplifting, vandalism, embezzlement, and a variety of other crimes. This will pay you back for the income loss should such an event occur.
- Health insurance: If your business has at least 50 full-time employees, you are required to provide them with affordable health insurance. Your insurance agent can help you find suitable coverage.
- Employment practices liability insurance: Also known as EPLI, this insurance provides coverage for your legal defense and potential financial damages if one of your employees sues your business for an illegal business practice such as sexual harassment, discrimination, or wrongful termination.
- Sewer and drain coverage: While flood insurance is designed to protect your property from outside water, should you have a plumbing issue caused by the drains or sewer inside your store, you’ll want this special coverage.
How Much Does Hobby Store Insurance Cost?
The cost of insurance for a hobby store will vary greatly from store to store based on the supplies you provide to customers. In addition, there are a variety of factors that affect the cost of your insurance premium that include:
- Number of employees: Premiums increase with the number of employees you have.
- Size of property: Premiums increase with the size of your property and premises.
- Location of business: If your business is located in an area that is prone to natural disasters, your insurance is likely to be more expensive to protect yourself against potential environmental events.
- Payroll amount: Because workers' compensation insurance reimburses employees for a portion of their lost wages, having larger payroll results in higher premium payments.
- Claims history: If your business has a history of incidents resulting in legal action, you'll be considered a greater risk by the insurer and will typically have to pay more in premiums.
A local independent insurance agent can obtain a variety of customized quotes that will allow you to select the most affordable option.
How to Find the Best Insurance for Your Hobby Store
When it comes to insurance, let the experts do the hard work. An independent insurance agent has access to multiple insurance carriers and can present you with several options. They’re able to shop competitive prices to make sure your needs are met at a reasonable rate. Find an independent insurance agent in your community here.
In addition, when it comes time to purchase insurance, an independent agent will break down the jargon and explain the details, so you understand exactly what you're getting.
And should you need to file a claim, you’re not alone. Your agent will be right there to help guide you through every last step and get your life back to where it all was. How great is that?
Why Online Quotes Aren’t Always the Best Way to Shop
Getting your insurance quotes online can be tempting. Sure, it’s fast and easy. But are the quotes you are getting actually accurate? And are you getting quotes for all the different types of coverage your business needs?
Online quotes cannot give you the whole picture. They often leave out important coverage, which may result in you being unable to get compensation if something disastrous happens. And they can leave out cost-saving opportunities such as discounts and bundling opportunities that an independent agent can help you take advantage of.
Instead of getting an online quote, find an independent insurance agent near you, and schedule a one-on-one consultation to discuss your options for the best coverage for your particular store.
Benefits of an Independent Insurance Agent
Independent insurance agents have access to multiple insurance companies, ultimately finding you the best coverage, accessibility and competitive pricing while working for you. Find an independent insurance agent in your community here.