Gift wrapping stores are primarily engaged in packaging and wrapping client-owned materials. Specifically, items are wrapped in decorative paper or containers according to customer wishes.
If you operate a gift wrapping store, you’ll need business insurance to protect you from your unique risk exposures. An independent insurance agent can help you get the coverage you need at an affordable price.
Why Do You Need Gift Wrapping Store Insurance?
Gift wrapping stores must invest in insurance policies to protect their business assets from the following potential risks:
- Accidents such as trips and falls in the store or parking lot
- Store fixtures causing injury or property damage to customers or other members of the public
- Damage to your inventory, fixtures, computers, and other personal business property due to some catastrophic or unexpected event (fire, smoke, weather, vandalism, etc.)
- Loss of income due to a catastrophic or unexpected event
- Employee theft of cash or inventory
- Employee lawsuits related to discrimination or other claims
- Theft of customer credit card numbers or another type of cyber breach
- Fire damage to landlord’s property
What Does Gift Wrapping Store Insurance Cover?
Gift wrapping stores need several business insurance policies in order to adequately protect their business from the many things that can go wrong.
- Commercial general liability (CGL) insurance: This is critical for any retailer or business that frequently has members of the general public on the premises. It pays for direct costs related to bodily injury or property damage caused by you or your employees. If you are sued, your CGL policy may also cover your defense costs, court costs, settlements, and court-ordered judgments that you must pay.
- Commercial property insurance: This protects you if a fire, vandalism, smoke, theft, or other type of event damages your business property. Even if you lease your space, this coverage is necessary to cover lost inventory, office equipment, computers, and all of your other business property. With the large volume of highly flammable papers, boxes, ribbons, and other packaging and wrapping materials on hand in your store, commercial property insurance is essential.
- Commercial property insurance policies usually include business interruption coverage, or business income coverage, which protects your earnings if your business is unable to operate because of damage caused by some type of disruption (fire, hail, wind, equipment breakdown). This coverage is usually quite affordable and will be invaluable if you are forced to close your doors for a period of time in order to make repairs. It pays for rent, employee salaries, lost income, relocation fees, and more.
You can expand your business income policy to include coverage for breakdowns in utility services (water, electrical) that force you to temporarily close your doors.
Owners of gift wrapping stores may want to consider a business owners policy (BOP) if they qualify for one. BOPS are designed for small businesses and include liability, property, and business income insurance in one affordable package policy.
What Is Employee Theft and Crime Coverage?
Small businesses are particularly vulnerable to crimes such as employee fraud or embezzlement. Even a small cash theft can be difficult to overcome.
Employee theft and crime coverage can protect your businesses from the costs of theft, dishonesty, and fraudulent acts committed by an individual employee or a group of employees. While it may be difficult for you to imagine, employees all too often steal property, money, and securities owned by their employers.
Employee dishonesty coverage can be purchased as a stand-alone policy or as an endorsement on other business insurance policies. A basic stand-alone employee theft and crime policy provides coverage for forgery, alteration, theft, unauthorized electronic funds transfers, credit card fraud, computer fraud, money order fraud, and counterfeit fraud. You can also add endorsements for additional coverage.
Other Policies to Consider for Your Gift Wrapping Store
In addition to the coverage types described above, gift wrapping stores should consider some of the following business insurance policies. Whether or not you need them depends upon your specific business needs.
- Workers’ compensation insurance: This protects your employees from the costs of work-related illnesses and injuries. It provides coverage for medical expenses and lost income for the injured worker. If you have employees, your state requires you to purchase workers’ compensation insurance.
- Fire damage legal liability: This coverage may be required if you lease your space. It protects you (and your landlord) if you are legally obligated by your lease to provide coverage for any fire damage that you cause to your leased space.
- Employment practices liability coverage: This protects you from lawsuits from prospective, current, and former employees for discriminatory employment practices.
- Cyber liability insurance: This provides coverage in the event of a data breach involving your business. It helps pay for the costs of notifying affected clients, as well as public relations and investigative costs. Cyber liability insurance is highly customizable and can be tailored to your specific cyber exposures.
In addition, your agent can help you determine how to best protect customer items that are stored at your gift wrapping store waiting to be wrapped or packaged (e.g., your customer drops off an item and returns at a later time to pick it up). You may need a form of inland marine insurance called bailee’s coverage to insure your customers’ property (items waiting to be wrapped) that are in your care, custody, or control.
How Much Does Gift Wrapping Shop Insurance Cost?
Your costs for gift wrapping shop insurance will vary depending on the unique characteristics of your business, such as the location, the number of employees, the value of your commercial property (building plus contents), whether or not you own your building, and the type of activities you perform on your premises.
The amount of coverage you need and the deductibles you choose also impact your insurance costs.
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 Agent
Our agents simplify the search process for finding the right gift wrapping shop insurance. They’ll walk you through the 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 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 a one-on-one consultation and affordable options for the best coverage for your unique needs.
TrustedChoice.com Article | Reviewed by Paul Martin
©2020, Consumer Agent Portal, LLC. All rights reserved.