Used Bicycle Shop Insurance

Your Guide to Used Bicycle Shop Insurance

Don't let costly problems ride away with your profits.

Used Bike Shop Insurance

Owning a used bicycle shop can leave you vulnerable to some unexpected and costly events. Why leave anything to chance? Would you be able to recover if a storm, a fire, theft, or a lawsuit impacted your shop? How would you pay to defend yourself if a customer sued you after being injured while test riding a bike in your shop?

Tailored used bike shop insurance is the answer. A local independent insurance agent can help you find a comprehensive set of business insurance policies that fit your needs and budget.

Why Do You Need Used Bicycle Shop Insurance?

Whether you take in donated bikes or you sell bikes on consignment, you have to make sure that the items on your sales floor are clean, safe, and in good condition. There’s no way that you can guarantee that a bike that you’ve sold won’t pose a problem to a customer, but you’ve certainly got to go out of your way to ensure that your products and your shop are safe.

Being responsible for injuries or property damage is one of the more serious risks you face in your used bike shop. And it’s one of the primary problems that your used bike shop insurance can protect against by helping you pay for any related costs.

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What Does Property Insurance Cover?

Property losses are one of the biggest threats to any store or shop. These losses can come a variety of sources, such as the following.

  • A fire in your store could cause a total loss.
  • A fire in an adjacent store or a small fire in your stockroom could cause smoke or water damage that destroys all of your merchandise, as well as your fixtures, furnishings, and cash registers.
  • Severe weather like a tornado can level a building. Even a severe thunderstorm can force a tree through your storefront window or cause a lightning strike that destroys all of your electronic equipment.

Commercial property insurance covers the costs of repairing or replacing damaged or destroyed physical assets, such as your actual store structure (if you own your building) and its contents, such as computers, fixtures, inventory, artwork, furnishings, display shelves, and more.

What Is Business Interruption Insurance?

When your business sustains property damage, you can also face a temporary loss of income if the damage makes you unable to operate for a period of time while you make repairs, rebuild your store, or replace lost inventory.

Business interruption insurance complements your commercial property coverage. Imagine you have a period of business interruption due to a covered loss (e.g., a fire forces you to close to make repairs and replace your inventory). You might never recover the lost sales and your future could be in jeopardy.

Business interruption coverage protects your earnings if your business must temporarily close because of the following issues.

  • Damage caused by disruptions like fire, hail, wind, and equipment breakdown.
  • Coverage pays for rent, employee salaries, lost income, relocation fees and more. 

What Does Liability Insurance Cover?

“Trip and fall” injuries are common in retail settings. If someone is injured in your used bicycle shop or as a result of your business operations, chances are you’ll be responsible for paying for any medical expenses for the injured party. If you are sued for additional damages, you’ll be on the hook for attorney fees, court costs, and possibly a six- or seven-figure financial settlement or court-ordered judgment against you.

That’s why commercial general liability insurance is so important for a used bicycle shop. It pays for direct expenses for an injured party as well as your legal expenses and financial payouts if you are sued.

Many small business owners purchase a business owners policy (BOP), which packages property, liability, and business interruption coverage into a single, affordable package policy.

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What Other Used Bicycle Shop Insurance Policies Do You Need?

You’ll likely need several other types of coverage to be completely protected from all of the risks you face in your used bicycle shop. You can purchase endorsements (add-ons to your basic policies) or stand-alone policies as needed to fill all of the gaps.

  • Commercial umbrella insurance: This provides an important safety net for cases when a claim exceeds the coverage limit on your general liability policy. 
  • Workers’ compensation insurance: This is required for almost every business that has employees. It compensates employees who are injured on the job by paying for medical expenses and lost wages related to their injury. 
  • Crime coverage: This protects your business from any number of crimes that could be committed in your thrift store. This includes vandalism, shoplifting, and employee theft or embezzlement.
  • Sign coverage: This 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: This provides income protection if you are unable to operate due to a covered utility (water, electrical) interruption.
  • Employment practices liability insurance: This covers you if an employee sues you for discriminatory employment practices.
  • Cyber liability insurance: This protects you from the costs related to certain cybercrimes. 
  • Commercial vehicle insurance: This covers any vehicles you use to pick-up donated bikes, or a business-owned vehicle that you use for any reason. 
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How Much Does Used Bicycle Shop Insurance Cost?

Used bicycle shop insurance costs will differ from store to store. 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, the value of your inventory, whether you own your building, whether you own vehicles, and many more variables.

The amount of coverage you need and the deductibles you choose also impact your used bicycle shop insurance rates.

Benefits of an Independent Agent

A local, independent insurance agent will get to know you and your business, free of charge. Independent agents can work with numerous, reputable insurance companies who specialize in your type of business. Together you can review a variety of proposals and choose the best mix of coverage that meets your needs and budget.

Find and Compare Quotes for Used Bicycle Shop Insurance

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.

Your agent will work with you free of charge to get quotes from multiple insurance companies so you can make the best choice.

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TrustedChoice.com Article | Reviewed by Paul Martin

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