There are many different types of shops including jewelry stores, florists, pet stores/pet shops, clothing & apparel stores, grocery, electronics stores, e-commerce, and more. All these types of businesses need to carefully select their insurance coverage portfolios including General Liability, which protects against lawsuits and other financial liabilities that result from a variety of incidents like customer injury, property coverage, often parts of a Business Owners Policy (BOP) which protect your storefront, other commercial buildings and personal property, and Workers Compensation coverage which kicks in if your employees become ill or injured while on the job. But those are just the basics. You may also be in need of different coverages including commercial auto or cyber liability or more. By working with one of our experienced commercial agents, you can be confident that you are reviewing all the various types of coverages that make sense for your business and get you the right combination of coverages at the right price.
What are the insurance policies we recommend for Retail Stores?
Business Owner’s Policy (BOP)
Worker’s Compensation
General Liability
Commercial Auto
Property Insurance
Employment Practices Liability (EPLI)
Commercial Umbrella
Cyber Liability
*In addition to these policies, we also recommend Crime coverage. To learn more about this type of coverage, give our agency a call today.
Retail Business Insurance FAQs
1. What types of insurance does a retail business need?
Most retail businesses should consider a package that includes General Liability, Commercial Property, Business Interruption, and Workers’ Compensation. Depending on your specific operations, you may also need Cyber Insurance, Commercial Auto, and Employment Practices Liability (EPLI).
2. Why is General Liability insurance important for retail stores?
It protects you from third-party claims like slips and falls, property damage, or even advertising injury. For retail shops with foot traffic, this coverage is essential—it’s often the first line of defense.
3. Does my retail store need Business Interruption insurance?
Yes. If a fire, storm, or other covered loss forces your store to close temporarily, Business Interruption insurance helps cover lost income, payroll, and even relocation expenses. Without it, a temporary shutdown could have permanent consequences.
4. How does inventory affect my insurance policy?
Insurance carriers need to know the value of your inventory to properly insure it under your property policy. If you have seasonal fluctuations (e.g., during holidays), you may want to consider peak season endorsements to ensure full coverage when stock is highest.
5. What if I sell products online in addition to my physical store?
You’ll want to ensure your policy reflects this. Selling online may expose you to additional cyber risks, product liability claims across state lines, and shipping-related losses. Your policy should account for all business channels.
6. Are retail employees covered if they get injured at work?
Not automatically. You’ll need Workers’ Compensation insurance, which is required by law in most states. It covers medical costs and lost wages for employees who are injured on the job—even if it’s a minor cut while opening a box.
7. What happens if a customer claims a product I sold caused them harm?
That’s where Product Liability coverage comes in. If you sell goods—whether you make them or not—you could be held responsible for injuries, illnesses, or damages caused by those products.
8. Do I need Cyber Liability if I only use a POS system?
Yes. Even basic point-of-sale systems store sensitive customer data. Cyber Liability insurance helps cover costs from data breaches, hacks, or ransomware attacks. It’s not just for online retailers anymore.
9. How can I keep my retail insurance costs reasonable?
Insurance premiums are based on factors like location, inventory value, sales volume, security systems, and claim history. To keep costs manageable:
- Install security alarms and cameras
- Maintain clear walkways to avoid slip/fall claims
- Train staff on safety protocols
- Work with an agency (like us) to review policies annually
10. What if I lease my retail space—do I still need property insurance?
Yes. While the building owner insures the structure, you’re responsible for your inventory, equipment, displays, and improvements you’ve made to the space. That’s what your Business Personal Property coverage protects.
11. Does retail insurance cover theft by employees or shoplifting?
Standard property policies usually cover external theft, like shoplifting, but employee theft (a.k.a. dishonesty) typically requires a Crime or Fidelity Bond. It’s an easy and smart add-on if you’re handling cash or inventory.
12. How do I know if I’m properly covered?
A 15-minute consultation with a retail-savvy agent can uncover gaps in your current coverage. At Keslar Insurance, we tailor each retail policy based on your unique risks—whether you’re a boutique, a franchise, or a high-traffic store.
