Owning a shelving and closet organizing store 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.
If you own a shelving and closet organizing store, you need to understand the types of risks that you face and how you can protect your assets and move forward even when things go wrong.
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 Shelving And Closet Organizing Store Insurance?
Your store is exposed to a variety of unique risks that must be addressed with tailored business insurance policies.
You have expensive and highly flammable inventory on hand at all times, including wooden shelving, fabric storage bins, dividers, organizers, product catalogs, and other items. 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 shelving and closet organizing 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)
- Causing property damage or injury when making deliveries or installing custom shelving or closet systems
What Does Shelving And Closet Organizing Store Insurance Cover?
Your business 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).
- 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.
- Commercial general liability (CGL) insurance pays for claims of bodily injury and property damage to third parties due to your negligence. If, for example, a child climbs on and pulls down a custom cabinet unit in your showroom and is seriously injured, 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.
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 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, building a display, or while out making a delivery, 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 Delivery And Installation Services
If you offer delivery and installation of custom closet solutions, you have a variety of additional risks.
- What if your installer damages a client’s home or personal property?
- What if the installer falls off a ladder at a customer’s home and is seriously injured?
- What if your tools, equipment, and materials are lost, stolen, or damaged while at a customer’s home or en route to or from a job?
- What if a client trips over an installer’s tools left on the floor in the client’s home, leading to an ankle injury?
- What if a custom closet system collapses after installation, damaging the customer’s walls and destroying fragile possessions that had been placed on a top shelf?
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 or property or is responsible for a client injury, your commercial general liability policy would respond. Your CGL policy would also likely cover you if one of your custom closet systems collapsed due to poor workmanship or some other design defect or mistake on your part.
If an installer is injured while on a jobsite, your workers’ compensation insurance would cover her injuries and reimburse her for any time away form 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.
Cyber Liability Insurance for Shelving And Closet Organizing Stores
Almost every kind of business today is at risk for some type of electronic data theft or cyber breach. And if you run an online 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 cyber attack 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 cyber crimes. 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 Shelving And Closet Organizing Store Insurance Cost?
Insurance for shelving and closet organizing stores can range from several hundreds of dollars per month to thousands. It depends on:
- the size of your business
- the number of employees
- the types of tools and equipment you own
- how many trucks and drivers you have
- the size and scope of the projects you take on
- the value of the inventory and other business property you keep on your premises
- and the types of coverage and amount of coverage that you need
If you are a sole proprietor with no employees, working primarily on small residential jobs, you can expect to pay far less for your business insurance than multi-store businesses with several showrooms, multiple employees, and the ability to work on large-scale projects.
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 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 shelving and closet organizing store 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-savings 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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