Whether you are finally achieving your dream of opening your own storefront or have decades of experience in merchandising, you know the retail industry is made up of many complex moving parts. One unexpected event could trigger a chain of consequences that result in expensive losses for your business. Having the right insurance could safeguard your retail store and the people who work for you against devastating financial loss. At AFI Insurance, we offer insurance solutions custom-curated for the retail industry, so business owners like you can stop worrying about the “what-ifs” and instead focus on the job at hand.
We serve many different types of retail businesses, including:
- Clothing stores
- Bridal and prom shops
- Shoe stores
- Furniture outlets
- Office supply stores
- Consumer electronics stores
- Homeware stores
- And more
Loss Avoidance – Understanding Your Risks
When you first enter the retail industry, you know your investment and how much you stand to lose upfront if your business does not succeed. However, there are far more significant losses to consider before opening your doors. Not only is your inventory at risk, but you also have worker safety and the potential for liability. Could you afford to hire a lawyer and pay thousands of dollars for victim medical bills if one of your customers is injured in your store the first week you are open? Having the right insurance from day one can help you avoid expensive losses and stay compliant with Illinois state regulations.
Retail Insurance Coverage Types
Commercial insurance typically includes many different types of coverage. For retailers, some of these coverages may be eligible for consolidation inside a business owners policy, also known as BOP insurance. This helps streamline coverage for businesses with standard risk exposures and can also help lower the cost of coverage in some cases. AFI Insurance can help you learn more about BOP Insurance and whether it could be right for you.
Depending on the nature of your business, your commercial retail insurance may include coverage for:
Physical Property and Assets
Retailers often rent the buildings from which they do business. Others build physical structures or operate from home. In any case, you still need property insurance to cover your business’s physical assets, inventories, signage, fixtures, furnishings, and any structures you own against the potential for damaging events, such as fire, explosion, theft, vandalism, high wind, and more.
Illinois workers are protected by laws that require most business owners to purchase worker compensation insurance that protects employees. This coverage is designed to pay for necessary medical bills and compensate workers for time off work when they are injured in the workplace, regardless of who was at fault for the incident. It can also protect your business by helping prevent employee injury-related litigation.
Brands and Labels Removal
Some retail manufacturers require retailers to remove brand names and labels to salvage merchandise. Retail insurance can help cover this cost and the loss it can represent for retailers.
General liability insurance helps minimize your business’s exposure to third-party injuries and property damages. Whether the wind blows one of your shopping carts into a car parked in your parking lot or a customer slips and falls on a wet floor near your restrooms, general liability insurance can help pay for any physical damages and medical bills you may be responsible for – up to the limits of your policy. If a victim chooses to sue your business for compensation of damages, general liability insurance can also help you pay for the cost of hiring a lawyer and defending yourself in court.
In addition to insurance that helps cover injuries and property damages, there are additional coverages available that may help pay for things like personal injury, advertising injury, or even accusations of competitor slander or copyright infringement. You can also purchase insurance that protects your business against the financial consequences of a data breach, including the cost of notifying affected customers, paying for credit monitoring, and restoring your computer systems after a cyberattack. Talk to your agent to find out more about retail liability protections and which ones may be right for you.
If a covered event forces your business to shut its doors or otherwise reduce your ability to sell merchandise, income loss protection can help you pay the bills until you can resume normal operations and recover your cash flow.
Other Retail Coverages
Additional coverages may be available to your business, depending on your needs. For example, if you utilize computer equipment and expensive software, coverage may be available to protect computers and their components. If you employ workers, coverage may also be available to protect your business against employee dishonesty and fraud. If your business is located in a flood zone, talk to your agent about commercial flood insurance and how it could protect you against losses not covered by your primary property insurance.
Illinois Retail Insurance Quotes
If you own or plan to open a retail business in Rolling Meadows or the surrounding areas, AFI Insurance can help you secure coverage to meet your needs. Our office understands the unique risks of retailers and how just one unexpected event could financially affect your business. We are committed to helping you protect your investment and cash flow with comprehensive commercial insurance solutions that minimize your risk of loss.