Modern homes are filled with gadgets like ovens, refrigerators, and washing machines that help the household run more efficiently. The public typically shops for these sorts of appliances at big box retailers or small family-owned stores, like your own. Most likely you’ve worked hard to keep appliance inventory stocked, your customers satisfied, and your employees motivated. Now it’s time to focus on making your life easier, and your business safe, by putting together a small business insurance portfolio.
Electronic and Appliance Store Facts
- Total annual revenue for electronic and appliance stores is $99.4 billion.
- Projections are that $588 billion will be spent on appliances by 2020.
- In one year, 11.4 million refrigerators are shipped in the US.
What Could Possibly Happen at an Appliance Store?
Every retailer can have a negative situation come about, including your appliance store. It’s kind of unusual for an electronic or appliance shop to have an employee or customer injured so badly that a lawsuit is involved. However, even if one unfortunate situation happens, your small business could take a big financial hit. Buying high-quality, low-priced commercial insurance will protect your appliance store against claims of negligence, false or not.
Have you ever thought about how one pricey accident could affect your appliance store’s future operations if you opt out of commercial insurance?
It’s good to think about how you’d handle these scenarios:
- Stock is damaged by flood, fire, earthquake, or sewer backup.
- An employee or customer gets hurt in your appliance store.
- An employee steals merchandise.
- A customer's banking information is stolen by a credit card skimmer.
- An employee says they were treated unfairly or harassed.
Why worry too much about these types of issues? Instead, simply call an independent insurance agent in your community. The agent can get your appliance shop insured and end your worrying.
Property Insurance to Protect Your Toasters and Freezers
Customers stop by your appliance store to purchase toasters, freezers, and microwaves. Maybe your customer just built their dream home and wants high-end merchandise. Or maybe the customer’s 15-year-old dishwasher finally gave up and it’s time to buy a budget-friendly replacement. Either way, you need to keep your electronic and appliance store fully stocked with inventory and make sure nothing happens to the merchandise. Property insurance is a great option for safeguarding one of your biggest investments.
Setting up insurance policies like the ones listed below will ensure that you receive financial assistance if a covered loss does happen.
- Property insurance: This policy is meant for all the business-owned property in your appliance store. All your appliances, computers, cash registers, and shelving systems are covered under this type of plan. If you keep extra sale property in a second location, like a warehouse, then you’ll want to buy a second property insurance policy for that stuff too.
- Building insurance: This insurance covers damage to the physical structure of your appliance shop. Building insurance usually covers damage caused by things like fire, hail, wind, or vandalism.
- Backup of sewer and drain insurance: This insurance coverage is meant for any water damage to your business and supplies that’s caused by sump pump failures or sewer or drain backups.
- Flood insurance: Many commercial insurance policies don’t cover flood damage. If you want flood insurance for your business, then you’ll need to talk with an independent insurance agent about FEMA’s National Flood Insurance Program.
Liability Insurance for Your Appliance Store
Small businesses, like your appliance store, can end up being named in a liability lawsuit. Anyone can make an allegation, even if it’s false, and you’ll have to spend time and money defending your appliance shop. Even one claim has the potential to cause big legal bills, court fees, and a possible financial payout. However, if you have liability insurance, you’ll have the peace of mind that comes from knowing your policy will pay for all the costs associated with a liability claim.
There are a few different types of liability insurance you may want to buy:
- Product insurance: A store patron could say, whether it’s true or not, that one of the appliances you sold caused them an injury. Product insurance will help your small business in this situation.
- Premises insurance: Your small business will find this policy useful if someone (e.g., vendors or customers) gets hurt or has their property damaged while visiting your appliance store.
- Cyber liability insurance: Small businesses getting hacked is a pretty common these days. That’s why cyber liability insurance has become so popular. Should your store’s computer network get hacked or a customer’s personal information stolen, you could be held responsible.
- Employment practices liability insurance (EPLI): Any employee can say they were a victim of your (alleged) illegal employment activities. That could mean things like discrimination, sexual harassment, or wrongful termination.
Business Insurance Is Like a Warranty for Your Appliance Store
Your independent insurance agent will help set up your business with liability and property coverage. From there, your agent can introduce you to lots of other business insurance choices like:
- Workers' compensation insurance: Most US states require businesses to have a workers’ compensation policy. This type of coverage pays an employee for lost wages and medical bills caused by a work-related injury.
- Business income insurance: Temporarily closing your appliance store doesn’t mean your expenses stop too. This coverage will give your business replacement income so you can pay for various expenses. You could use the insurance money to cover payroll, pay your mortgage or lease, and settle any urgent vendor bills.
- Employee dishonesty insurance: No matter how diligent you are when hiring new employees, there’s always a slim chance one of your team members won't work out. Maybe your appliance store rep embezzles, steals, or does some other illegal things while on the clock. This insurance will save your appliance store from financial losses that come about because of an employee’s illegal actions.
Plug Your Appliance Store into Business Insurance
After spending lots of time and money running your appliance store, many people would say you’re an expert at being a small business owner. To get the right commercial insurance package, you’ll want to turn to an insurance expert. Working with an independent insurance agent is really easy. These experienced local agents will find you great quality, highly affordable insurance for your appliance store.
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