NYC Insurance Blog

What Type of Insurance is Suitable for a Retailer?

Owning a business entails many responsibilities, such as providing high-quality products to each customer and exceptional customer service. But, what do you do when there is an injury or damage?

For a brick-and-mortar retail store, maintaining adequate insurance coverage is critical. Most importantly, understanding the differences between policy options will assist you in deciding what type of retail insurance you require.

As a brick-and-mortar retailer, you must meet specific requirements. But first, what is a "brick and mortar" business?

Definition of "Brick and Mortar" Business

A brick-and-mortar retailer is a company that sells a product or service in a physical location. Perfect examples of brick-and-mortar retailers include a retail clothing business, a warehouse, and a grocery store.

Compared to running an online store, a brick-and-mortar store requires physical interaction with customers and employees. Consequently, the risk of experiencing property damage, injuries, or even stolen and lost goods increased. Teaming up with an Insurance Agency, may be the best way to shop insurance companies around for the best fit, call us today!

What are the different policies that a retail business owner can take for their business?

Understanding the types of Brick and Mortar Retail Insurance

When it comes to insuring your brick-and-mortar retail store, there are various types of insurance coverage packages and alternatives to choose from. However, comprehending the differences between them can be difficult. Hopefully, the distinction between primary and secondary insurance explained below will help you determine what kind of insurance you need for your retail store.

1. Commercial General Liability Insurance

As a business, you have a great deal of responsibility to anyone who might interact with your business. It could be passersby, customers, or even business neighbors. 

In that case, you will need commercial general liability insurance (CGL), also called Retailer's Insurance. CGL helps your business cover costs when you find yourself in court fighting against a lawsuit. 

The CGL covers third-party claims that may arise from your business operations, including but not limited to advertising, products, personal injuries, and property damage. Usually, the CGL is part of the Business Owner's policy, including business property insurance. 

The CGL expands coverage to cover buildings, business income, and business personal property on the commercial package policy.  We have a competative market for General Liabilty, give our Agency a call today!

Now, why is a CGL important for your business?

Lawsuits are not the easiest things to deal with. They consume a lot of time, put your operations on hold, and sometimes may bankrupt you. In addition, hiring a lawyer to represent you, paying the legal fees, and the settlement are costly.

However, with an appropriate general liability cover, you can let your insurance company shoulder the burden for you. A CGL helps you cover some of these expenses to protect your business. Usually, commercial general liability insurance covers costs up to your plan's limits, excluding any deductibles mentioned on the policy.

2. A Worker's Compensation Insurance

If you are a retail business, protecting your employees with worker's compensation insurance is very important. You not only boost your employees' morale but also increase their loyalty. Also, you focus more on safety around your company premises, thus reducing lawsuits related to injuries.

And since the policy offers no-fault insurance, you have the guarantee that any work-related injuries will be in the plan. The employees benefit by getting all their medical expenses covered for the initial and follow-up treatments.

Most importantly, the cover helps to replace the employee's salary while recovering. So, your workers can focus on recovery without thinking about work. 

How can you reduce the worker's compensation premiums

You can enact some measures to lower the premiums you pay for your worker's compensation policy. Some of these include:

• Improving your workplace safety
• Offering first aid training
• Rewarding employee's safety
• Set a good example for your employees
• Educate your workers on the latest safety policies
• Document everything

The point is to try to make your workspace as safe as possible and educate your employees on how to be safe.

3. Commercial Building Insurance

If you operate from a commercial building, commercial building insurance helps cover any damages to the physical structure. It could cover damages due to rain, lightning, storms, or vandalism. 

With commercial building insurance, a business can re-open its doors quickly after natural disasters. This way, they can limit their loss of income.

4. Business Personal Property

This is the ideal cover if you have any machinery, merchandise, or furniture on your business premises. It includes all property except the building your business operates from or within 100 feet of the building. Get Quotes TODAY, over the phone!

The business personal property cover also includes any personal property in the custody and control of the owner. It could also include the employee's items near the business premises, whether in a vehicle or open space. 

5. Commercial Auto Insurance

Let's say your business offers delivery services. Therefore, you have vehicles that you need to insure against accidents. Commercial auto insurance covers any accidents that could arise from using your car for your business-related tasks.

Other important policies to consider as a retail business owner include:

• Employment practices liability
• Employee benefits
• Cyber liability insurance
• If in Florida, flood insurance will come in handy A business interruption insurance

Bottom line

Protecting your business and employees against lawsuits and crippling medical bills can help you stay afloat in business. However, operating in a commercial space increases your risk of injuries and accidents. 

To protect your business, you should consider taking up a business owner's insurance coverage, including general liabilities and property insurance. NYC Business Group is the right partner for you. Allow us to help you shop different carriers and prices until you find the right fit for your retail business!

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