Sewing machines, unique fabrics, and crafting materials fill the racks of sewing machine stores throughout the US. Everything that both professional tailors and amateur seamstresses may need can be found in big crafting stores (think JOANN or Michaels), as well as locally owned sewing machine shops. Store owners, like yourself, want to feel confident that their business will be open for a long time. Getting the right small business insurance policy can keep your business from unraveling at the seams when unexpected challenges pop up.
Fabric and Sewing Machine Store Industry Facts from IBIS World
- Total annual US revenue is $4 billion (2019).
- Fabric and sewing machine stores employ 56,540 Americans.
- Total number of US fabric, craft, and sewing machine stores is 24,254.
What Could Go Wrong in a Sewing Machine Store?
Whatever the nature of a business, there’s always a slim chance something could go wrong. Accidents and misunderstandings can happen anywhere, which means that even your sewing machine store is vulnerable to potential lawsuits or claims.
Sewing together a patchwork of the best commercial insurance policies to protect your store is an excellent investment.
Without a good commercial insurance package already set up, you might have to pay out of pocket for situations like these:
- Water drain backs up: Melting snow and spring showers could lead to a drain backing up into your storage space. You’ll need to clean up the water and maybe replace any damaged merchandise. It helps to have a policy that will give you cash to cover all the costs involved.
- A customer gets hurt: For any number of reasons, the store’s floors could get slippery and a customer could fall while shopping. Let's say the patron breaks their hand, needs to have corrective surgery, and misses a few weeks of work. Your sewing machine store may be sued by this former customer.
- A disgruntled former employee: They may claim that your store manager unfairly fired them last year. The former employee goes on to say this was all caused by discrimination. You’ll need to hire an attorney to defend your business, which will cost plenty.
Business owners, like yourself, can spend a lot of money resolving these types of unfortunate scenarios. Retail stores that already have business insurance usually recover much more quickly from these sorts of setbacks.
Independent insurance agents in your community will help you get the best business insurance for your sewing machine shop.
Property Insurance for Your Craft and Sewing Machine Store
The contents in your store could very well be the most critical part of your business. So it makes sense that you’d like to have business insurance in the event of an unplanned loss.
- Building insurance: If you own the building where your craft and sewing machine store operates, then this policy is perfect for you. This plan will pay for any damage (caused by vandalism, fire, wind, or lightning) to the physical structure of the store.
- Property insurance: All the sewing stuff inside your shop should really be insured too. Wouldn’t you want the sewing machines, crafting materials, and bolts of fabric to be replaced if something bad happened? Equipment or inventory that’s stored in an alternate spot, like a storage unit or warehouse, usually needs to be covered under a separate property policy.
- Flood insurance: Your independent insurance agent will explain that most business insurance doesn’t cover any losses from flooding. If your store is at risk for flood waters, it’s a good idea to talk with an independent insurance agent about FEMA’s National Flood Insurance Program.
- Backup of sewer and drain insurance: Water damage doesn’t just come from floods or big, scary weather events. You could get water damage because of sump pump failures or drains/sewers backing up. This policy will make sure you have the money needed to straighten things up and get back to work.
- Earthquake and hurricane insurance: If your sewing machine store is in a region that often gets hit by hurricanes (like Florida) or earthquakes (like California,) then you may want to get this policy.
An experienced independent insurance agent can sew together the best commercial insurance portfolio for your sewing machine store.
More Commercial Insurance for Your Sewing Machine Store
Your sewing machine shop could be named in a lawsuit even if you and your business did everything right. Unfortunately, when something like this happens, you’ll still have to spend money and time defending your shop. Getting property insurance and general liability insurance will cover many different expenses like financial settlements, court fees, and attorney costs. However, you may want to build on those basic plans by adding more unique coverage.
More commercial insurance options for your sewing machine store include:
- Business income insurance: This policy is meant for when your sewing machine shop has to be temporarily shut down. The plan will replace your income so you can cover standard business expenses like payroll and your mortgage/lease.
- Workers' compensation insurance: Almost every US state requires that businesses, like yours, get a workers’ compensation policy. That’s because it pays part of an employee’s wages and their medical bills when the employee gets hurt while on the clock.
- Employment practices liability insurance: Everyone has heard of a small business that was sued by a disgruntled employee. The issue could be something like wrongful termination, discrimination, or harassment. This plan will pay for your attorney fees and any other costs related to this situation.
- Employee dishonesty insurance: Maybe your sewing machine store has the bad luck of employing a dishonest team member. An employee could steal cash or merchandise that your business has to replace. Plus, you may want to pursue legal action against the double-dealing staff member. This coverage will assist your store in becoming whole again.
Independent insurance agents can help you figure out which business policies will benefit your store the most.
Benefits of an Independent Insurance Agent
Independent insurance agents have access to multiple insurance companies, ultimately finding you the best coverage, accessibility and competitive pricing while working for you. Find an independent insurance agent in your community here.