Audio & Stereo Equipment Stores

Now Hear This: Business Insurance for Your Audio Equipment Store

Christina Palermo | December 13, 2019
Audio equipment stores insurance

The rise of movie streaming services in recent years has made home audio equipment even more popular. Many families create their own home theater systems with high-quality audio equipment. That means your audio equipment store is probably busy these days selling soundbars, Bluetooth speakers, turntables, and plenty of other electronic devices. Even though it can be very hectic running an audio equipment store, you may find it worthwhile to look into small business insurance. Working with an independent insurance agent to design a comprehensive commercial insurance portfolio is time well spent.  

Home Audio Equipment Store Industry Facts

  • Total annual US revenue is $23 billion.
  • The US has 158,009 audio equipment businesses.
  • Audio stores have had an average of 3.1% annual growth (2014 - 2019.) 
  • Audio equipment stores are responsible for employing 670,732 people.

What Could Happen in an Audio Equipment Store? 

Visiting or working at an audio equipment store seems pretty low-risk. It makes sense that you might not be concerned about people claiming they’ve somehow been harmed while in your retail shop. However, it’s naive not to notice that lawsuits (whether valid or not) get filed daily against small businesses like your own. Many things can go wrong at any business, including your home audio equipment shop. That’s why you’ll be glad to have commercial insurance in place if the unexpected happens. 

Without the proper small business coverage, how would your store be impacted by any of these situations: 

  • Audio equipment is ruined by drain backup, a hurricane, or fire.
  • A customer or employee falls and breaks an ankle in your store.
  • A dishonest employee steals some of your audio equipment.
  • A customer's banking account info stolen by a credit card skimmer. 
  • A former employee claims they were unfairly fired.

Any of these scenarios could take a toll on your home audio store’s financials, and potentially hurt your shop’s reputation. Talking with an independent insurance agent within your community might save you a lot of aggravation someday. 

Property Insurance for Your Audio Equipment Store

Your store and everything in it are your biggest assets. So it’s worthwhile to have have plenty of commercial insurance to help replace or repair any business property that could be ruined. 

There are a variety of property insurances to pick from like: 

  • Building insurance: Owning the actual building where your store is located is reason enough to protect it with building insurance. Doing so means any physical damage to the structure of the shop will be paid for by the insurer. Most building policies cover things like fire, lightning, and vandalism.  
  • Earthquake and hurricane insurance: Certain regions in the US are at very high risk for natural disasters like hurricanes and earthquakes. If your audio equipment shop is located in such an area, then buying this coverage will provide you with financial resources should such a event occur. 
  • Property insurance: This policy is the perfect way to insure everything in the audio equipment store. You’ll have the peace of mind that comes from knowing all your merchandise, office equipment, shelving, and other items are protected. Keep in mind that any business property you store at an off-site location will need its own property insurance policy.  
  • Flood insurance: This is a supplemental policy that will help your store should it be damaged by a flood. Most commercial policies exclude flood coverage, so you’d have to talk with an independent agent about FEMA’s National Flood Insurance Program.
  • Backup of sewer and drain insurance: Stores that are below or at ground level usually opt for this coverage. Backed up drains and sewers, and failed sump pumps, can cause a lot of water damage that’s not normally covered under a building policy. You’ll want this plan to pay for the clean-up and replacement of lost property. 

Be sure to chat with an independent insurance agent who can pump up commercial insurance protections for your audio equipment store. 

Unplug Possible Lawsuits against Your Audio Equipment Store

Buying general liability insurance will go far toward taking the sting out of possible lawsuits against your home audio store. However, you’ll also want to protect your business from other allegations too. Even if your shop isn’t guilty of the accusations being made, you’ll still have to spend plenty of money and time defending your store.

Other commercial insurance policies that your audio equipment store may find useful are: 

  • Workers' compensation insurance: Nearly every US state has rules in place requiring businesses buy workers’ compensation insurance. This policy is meant to pay for medical treatment and a portion of an employee’s lost wages when they are hurt while on the clock. 
  • Employee dishonesty insurance: If your store is the victim of a dishonest employee who chooses to do something illegal while working for you, you’ll be pleased to have this coverage. Maybe a former employee took money from the cash register or stole merchandise from your audio equipment store. Basically this insurance plan will help make your store whole again when an employee commits a crime. 
  • Business income insurance: With this insurance, your audio equipment store will receive replacement income should you have to close temporarily. This is very helpful, since you’ll have cash on hand to cover payroll, vendor bills, and the mortgage/lease. This coverage won’t let a short-term setback derail your business long-term. 
  • Cyber liability insurance: The news is filled with reports of businesses being hacked by criminals. Should your audio equipment shop have the computer network or credit card device compromised, you’ll be relieved to know cyber liability will get you back to business quickly. 
  • Employment practices liability insurance (EPLI): This is another insurance plan that assists you when an employee (current or former) claims they were mistreated by your store. It doesn’t matter if the employee says they were wrongfully terminated, discriminated against, or sexually harassed. Your EPLI policy is there to support your business in defending its reputation. 

Listen to an Independent Insurance Agent 

An independent insurance agent is a great resource when it comes to buying business insurance for your audio equipment store. These agents work with a variety of insurers and can design an affordable commercial insurance portfolio for your business.  Contact an independent insurance agent to learn more about business insurance packages for your audio equipment store. 

Sources © 2020, Consumer Agent Portal, LLC. All rights reserved.

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© 2020, Consumer Agent Portal, LLC. All rights reserved.

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