What factors impact the cost of retail business insurance?
Several factors affect the cost of retail business insurance. Find out what they are and how they can help you choose insurance coverage.
Updated May 29, 2023.
This can be a multi-policy coverage plan that can help protect your retail business against unexpected incidents like employee injury, liability claims and property damage.
But, of course, costs can differ. Examining the following factors closely can help you make a better decision about your coverage:
1. Type of retail business
The risk level associated with your business type is a significant factor that can impact your insurance cost.
- Low-risk: This can include home-based companies and consultancies.
- High-risk: Construction, manufacturing and other brick-and-mortar businesses can fall under high-risk. Third-party accidents and property damage can drive up insurance costs.
2. Coverage needs
Depending on your circumstances, you may want varying types of cover. Each addition could affect your insurance fees.
- Liability coverage, which can include general liability or professional liability, can help if a customer is injured on your business premises or files a claim against you for negligence.
- Commercial property coverage is useful if you'd like protection against theft, vandalism or damage to your business property.
- Workers' compensation coverage is often required by state law if you have employees. It can help with medical bills and lost wages if an employee gets injured at work.
Location can impact the reach of your business as well as insurance costs. For example:
- If your business is in an area prone to weather events like windstorms, insurance costs may be higher as there is a greater risk of property damage or business interruption.
- If you have an online retail store, you may have lower fees because there's less property damage and third-party liability associated with this type of business.
» Check out this retail loss prevention guide to help secure your business
Get budget-friendly retail business insurance with NEXT
Whether or not your retail business is susceptible to higher risks, retail business insurance can help give you peace of mind to focus on your daily operations.
With NEXT, your insurance can be tailored to your business needs, bundled and adjusted if needed. To find an affordable option, apply online and get an instant quote in less than 10 minutes. You can also get your certificate of insurance and share it 24/7 with the NEXT app.