Having insurance is crucial to protect your retail business. When you start looking at different types of business insurance, you may find several options, and this often leads people to wonder what they are, how they work, and whether they need them. It is essential to consider your business and choose those types of insurance that will protect you and minimize your business risk. Take a look at the top 8 types of insurance for retail businesses.
1. General Liability Insurance
General liability insurance will protect your business if someone has an accident or has an issue with one of your products. Your business can be held liable for any harm caused by your company, its employees, your products, or your physical location. General liability insurance aims to protect you, as one lawsuit can wipe out all of your earnings. Selecting this type of policy generally covers your defence and any claims the other party is awarded. Learn more about general liability insurance here.
2. Business Interruption Insurance
Another type of insurance for Canadian businesses is business interruption insurance. Most types of insurance will cover your direct losses, but this covers the loss you suffer when rebuilding after a natural disaster. If you have a network failure, it will take time to get your network back up and running, and this type of policy covers the money you lose during this time. You can use this type of insurance to make up for the revenue you lose when you have an interruption.
3. Commercial Property Insurance
If you own your business's property, you want commercial property insurance. This business insurance covers you in cases where you have a flood, fire, theft, vandalism, and more. The policy will cover your building, but you must also consider your equipment, inventory, and even outdoor signs. You can include any physical assets that your business needs. If you don't include something in this policy, you will have to fix or replace it out of pocket.
4. Cybersecurity Insurance
Most businesses, including retail, rely on data and computers for everything they do. You might have a rewards program, and your database will include customers' names, addresses, and other personal information. Some stores allow customers to save credit card information to make ordering easy. For these reasons, hackers are always trying to break into business databases. Cybercriminals may use ransomware to hold your files hostage. A cybersecurity insurance policy can help you pay it. In addition, it will cover you if hackers access your customers' personal information. Pay attention to this policy type and ensure you have what you need. Find out precisely what the policy covers before you sign up.
5. Crime Insurance
When you have a retail business, you are likely to experience theft. Crime insurance is essential because it protects you if you have an employee that steals from you. It covers any losses you suffer from a dishonest employee, including stolen merchandise, computer crimes, property theft, forgery, fraud, and more. It is better to ensure you are protected than to suffer a loss down the road. Crime insurance coverage is typically found in most small business insurance policies, but the dollar value of items covered may be worth having a closer look at. Depending on the nature of your business and the worth of your product, you may want to increase the crime insurance coverage amounts.
6. Professional Liability Insurance
You might consider professional liability insurance if your retail business offers professional advice or consulting services. This is different from general liability because it covers anything that happens due to your professional advice or service. For example, if you have fashion consultants who put together appropriate attire for customers, they could sue you if they feel that something they wore cost them an opportunity. This type of insurance is common for anyone who engages in consulting services.
7. Commercial Auto Insurance
Commercial auto insurance is necessary for businesses that have vehicles and transport products or people. If you offer deliveries or any other vehicle-related services, you can be held responsible if there is an accident. It doesn't matter if you have one car or an entire fleet; you should have commercial auto insurance for them. If you have five or more vehicles, you can choose a commercial fleet insurance policy, which saves money. However, even if you only have one vehicle, this is an essential type of insurance to have.
8. Key Person Insurance
Critical person insurance is another type of business insurance. If you have a situation where a key person who is vital to your business has an accident or an illness, this insurance will cover hiring and training someone new. This insurance is crucial if you have an IT person or any other person in your retail business that is important to the continued day-to-day operations. It is expensive to train someone with a specialized job, so you will get the resources you need while covered under key person insurance.
Ready to Invest in Business Insurance?
Insurdinary can help. We have partnered with APOLLO Cover in order to be able to bring you the best business insurance in Canada, and all types as well. With premiums starting at $26/month, and free legal advice, it’s worth a look. Get your quote here.