How does General Liability insurance protect retail stores?
General liability insurance helps to protect your retail business from common risks. It’s recommended for both physical and online retail stores.
Regardless of what type of retail business you have — furniture store, hardware store, bike shop, florist, bookstore, etc. — general liability insurance offers coverage for certain types of workplace accidents. For example, it would help cover the costs of a customer’s medical expenses if they got hurt at your shop.
General liability can also also help e-commerce businesses which don’t interact with customers face to face, like in the event that a product malfunctions and causes damage to someone’s property.
What does General Liability cover for retail businesses?
General liability insurance helps cover common accidents which affect someone other than an employee, such as an injury or damage to a customer’s property.
You might be held responsible for any financial damages that result from these types of accidents, which is why it’s so important to have retail liability insurance coverage.
Retail general liability insurance can help cover a variety of costs, such as:
- Injuries to people who are not employees
- Damage to someone else’s property
- Accusations of libel and slander
Learn more about what general liability insurance covers.
Why do retail stores need General Liability insurance?
Retail customers interact directly with a store’s products, and if something goes wrong, the business can be held responsible.
Customers who visit retail businesses in person are stepping on to store property. If an accident occurs on site, there’s a chance that the customer could sue for financial damages.
Physical and online retailer liability insurance helps protect businesses from these risks by covering associated costs up to the policy limit. That means you won’t have to scramble to pay for unforeseen expenses out of pocket, which helps keep your business financially stable.
Depending on where you operate your business, you may need retail store liability insurance in order to obtain a business license. In addition, retail platforms like Amazon may require it before you can begin selling online. General liability coverage from NEXT meets Amazon’s insurance requirements.
What are some common risks faced by retail businesses?
Retail insurance offers you protection from a wide range of unexpected events and accidents. Here are some of the common risks that retail business owners may face at work:
Damage to someone’s property
The packaging for one of your cosmetics is faulty, and it leaks all over the inside of a customer’s designer purse. General liability insurance can help pay for the cost to have the purse cleaned or replace it entirely.
Accidents that hurt someone
A display in your retail store falls over and fractures a customer’s foot. Their medical expenses can be covered by your retail store liability insurance.
General liability coverage only covers accidents affecting customers and other third parties. You’ll need workers’ compensation insurance to cover accidents that hurt yourself or an employee.
Court and legal fees
A client claims that the tablecloths they ordered for a big event were not made of 100% silk as advertised. If your general liability insurance includes professional liability coverage, you’ll get help paying for the legal fees to defend yourself.
Libel, slander and defamation
A former customer claims that you harassed them when you shared their negative review on social media in order to refute the complaints. If you need legal assistance to defend yourself, general liability insurance can help cover the costs.
How much does retail Liability insurance cost?
NEXT keeps the costs of liability insurance low by offering policies which are customized to your unique business needs.
Currently, 44% of our customers at NEXT pay between $66 and $85 a month for general liability insurance. However, the average cost for retail liability insurance is only $31 per month because the risks involved in retail are relatively low compared to many other industries.**
Some of the factors which affect how much retail liability insurance costs include:
- How many employees you have
- Where your business operates (in stores, online or both)
- The state where you work
- Your claims history
- How high you set your limit
- How long you’ve been in business
NEXT offers tailored business insurance for retail businesses
NEXT makes it easy to get affordable insurance for retail businesses, including businesses that operate in person and/or online. Our simple and straightforward process allows you to quickly find the coverage that’s right for you.
Apply through our online service using any computer or mobile device. You can compare insurance options, purchase coverage and get a certificate of insurance in just minutes.
Get an instant quote online today.
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