Souvenir shops sell a variety of goods, from greeting cards and stationery to holiday decorations, gifts, T-shirts, postcards, figurines, stuffed animals, coffee mugs, and even one-of-a-kind artwork, quilts, and other handmade items.
Souvenir shops generally operate where large groups of tourists or travelers gather, such as in busy shopping districts, near tourist attractions, in airports or zoos, at national parks or museums, and anywhere you might find people looking to purchase an item to remember their stay at a special place.
That’s why souvenir shops are unique. Where they’re located, what they sell, and the types of people that frequent them vary wildly.
Owning a souvenir shop is very rewarding, and it also presents many risks. For souvenir shop owners, the best way to protect your livelihood when something goes wrong is to purchase business insurance.
A local independent insurance agent can help you find the coverage that best meets the unique needs of your business.
Why Do I Need Souvenir Shop Insurance?
Souvenir shop insurance helps you avoid financial devastation after an unexpected event causes some kind of damage to your business. Consider all 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 (often clothing, paper products, stuffed animals, artwork, and collectibles that are particularly susceptible to fire, smoke, and water) due to some catastrophic or unexpected event (fire, smoke, weather, vandalism, etc.)
- Inventory damage due to careless shoppers (a customer knocks down a display case full of collectibles) or vandalism (intentional destruction of inventory by an individual or group)
- 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 (improperly labeled products that present a child choking hazard or allergy hazard)
- Employee injuries (falling off a ladder, back injury due to heavy lifting)
- Employee lawsuits related to discrimination or other claims
What Does Souvenir Shop Insurance Cover?
Souvenir shop 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.
Working closely with an independent insurance agent, you can determine exactly what risks you have and find tailored insurance policies to address them.
- Commercial property insurance: Helps you rebuild or make repairs when an unexpected event—like a fire, a flood, hail, lightning, or a tornado—destroys your merchandise and your physical space (structure). It helps you replace, rebuild, or repair computers, cash registers, inventory, equipment, furniture, fixtures, and more after a covered event.
- Business interruption coverage: Compensates for lost business income and pays for operating expenses if you must temporarily close after a covered loss (e.g., a fire damages your stockroom and part of the sales floor, and you must close your store during the rebuilding process).
- Commercial general liability (CGL) coverage: Covers claims brought against your business due to negligence on the part of you or your employees. If someone is injured on your premises (e.g., a T-shirt display shelf falls off the wall onto a customer, causing a head injury) or as a result of your operations, your CGL policy pays for medical bills and other expenses for the injured party. If you are sued, it pays for your legal defense, court costs, and any settlements or judgments that you must pay.
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 business owners.
You’ll probably need additional endorsements to your business insurance policies or additional stand-alone policies that offer coverage for situations that are excluded from coverage or not sufficiently covered under your basic property and liability policies.
- Commercial umbrella insurance provides excess liability protection for 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.
- Commercial auto insurance ensures that you’ll be able to pay for any physical damage or injuries you cause if you are in an auto accident while driving for business purposes. If you have a business-owned vehicle that you use for running errands, making deliveries, or for other business purposes, you will be covered by your commercial auto policy.
- 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. If a cashier, stock person, store manager, or any other type of employee is injured while lifting heavy boxes, slipping on a wet floor, or falling off a ladder, workers’ compensation insurance pays for related medical costs and compensates the employee for time away from work.
- Crime coverage protects your business from any number of crimes that could be committed in your souvenir shop. This includes vandalism, shoplifting, and employee theft or embezzlement.
- Product liability coverage protects you when problems arise with the products that you sell. If a defective product that you sold injures someone (e.g., glassware breaks with minimal handling and causes a serious laceration), your souvenir shop may be held liable for the injury and required to pay damages. Your CGL policy includes some coverage for product liability claims, but in some cases you may need to purchase a stand-alone policy to sufficiently cover your risks.
- 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.
- Utility interruption coverage provides income protection if you are unable to operate due to a covered utility (water, electrical) interruption.
- Employment practices liability insurance covers you if an employee sues you for discriminatory employment practices.
How Much Does Souvenir Shop Insurance Cost?
The cost to cover your souvenir shop 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 Insurance Agent
Our agents simplify the search process for finding the right souvenir shop 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.