A department store is a business that costs thousands of dollars. The problem is, a lot of problems can easily make this retail venture go down the drain.
The food sold in the grocery section of your department store can spoil and inflict food borne illnesses to customers. A small fire can start in the electronics section and result in a devastating loss. Theft and vandalism can also happen in your department store’s fashion shop.
Department store insurance covers such risks. In this guide, you will know what policies are included, how much premiums cost, and which insurance companies provide the best coverage.
Liability coverage allows your department store to face lawsuits without any worries or fears. General liability and product liability are the two types of department store liability insurance. Let’s see how each works.
| CoverWallet | NEXT (Best) | Thimble | Hiscox | |
|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $300,000/$1,000,000 |
| Aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $300,000/$2,000,000 |
| Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
| Tenant’s legal liability coverage limit | $100,000 | $100,000 | $5,000 | $100,000 |
| Waiver of subrogation included? | Yes | No | Included | Can be included |
| Hired/non-owned auto liability coverage included? | Yes | No | Excluded | Can be included |
| Equipment breakdown floater included? | No | Yes | Yes | Can be included |
| Can you get a certificate of insurance online? | Yes | Yes | Yes | Yes |
| Name additional insureds? | Yes | Yes | Yes | Yes |
| Deductible | $0 | $0 | $0 | $0 |
General liability insurance grants protection if your department store faces a claim for bodily injuries, property damage, slander, copyright infringement, and libel. This insurance is a primary inclusion in almost all department store insurance bundles.
Have this insurance and you can easily grant compensation for medical treatment, reimbursement for property damage, pay legal defense costs, and cover court judgments. Use the table above to see which insurance company offers the best general liability insurance for department stores.
Unfortunate events in your department store that general liability insurance can cover are as follows:
Slip and fall accidents
A customer getting hit by a trolley or any other equipment that your employee is using
The occurrence of a stampede due to a false fire alarm, a person brandishing a weapon, or any other incident that will entice the public to panic
Customers getting hit by falling merchandise from shelves
A customer sustaining injuries while testing the chair or tool sold at your department store
Your department store facing a copyright infringement claim after misusing the trademark of a brand in an advertising campaign
Yes. Insurance companies allow you to add terrorism coverage to general liability insurance. You can use this to cover the medical treatment of customers and reimburse their damaged properties in case of a suicide bombing, hostage-taking, and other types of terrorist attacks.
Customers can file a claim if they sustain injuries or property damage due to products bought from your department store. This will cost a lot to sort out, and product liability insurance can help.
Product liability insurance is automatically included in general liability insurance. This grants a $1 million-$2 million coverage you can use to cover compensation, legal defense, court judgments, and product recall expenses.
The coverage of product liability insurance applies when a client accuses your department store of selling:
Substandard products
Products with labeling errors
Products with erroneous or inadequate user manual
Products with manufacturing defects
Get all the best quotes from leading providers in a click of a button!
| CoverWallet | NEXT (Best) | Thimble | Hiscox | |
|---|---|---|---|---|
| Building coverage limit (minimum) | $50,000 | $380,000 | $25,000/$500,000 | $25,000 |
| Contents coverage limit (minimum) | $50,000 | $35,000 | $25,000/$500,000 | $15,000 |
| Outdoor signs | Excluded | $2,500 | Excluded | Included |
| Accounts receivable | Excluded | Excluded | $5,000/$10,000 | Included |
| Money and securities | Excluded | $2,500 | $1,000 | Included |
| Lock and keys | Excluded | $2,500 | Excluded | Included |
| Business interruption floater | Excluded | Included | Included | Included |
| Equipment breakdown floater | Excluded | Included | Excluded | Included |
| Inland marine insurance floater | Excluded | Excluded | $10,000 | Excluded |
| Employee dishonesty floater | Excluded | $5,000 | $2,500 | Excluded |
Building a department store or having an existing building renovated into one takes a lot of money. Damage or destruction will mean utter devastation and significant losses. Nonetheless, insurance companies give you the chance to recover through commercial property insurance. Use the table above to see which company offers this type of department store insurance policy best.
Commercial property insurance will reimburse financial losses if your department store’s building, stocks, and inventory is damaged or destroyed by
Fire
Theft
Vandalism
Riot
Civil commotion
Sinkhole collapse
Volcanic action
Lightning
Weather
Impact
Falling objects
Aircraft
Vehicle
Sprinkler leakage
Yes. You can broaden the coverage of your department store’s commercial property insurance by getting these endorsements:
Spoilage–If you specialize in highly perishable goods, you must store these products in a controlled environment to prevent them from spoiling. You can add spoilage insurance to cover any financial losses you might suffer due to a failure in the temperature control system caused by situations you can't control
Mechanical failure–This endorsement covers repair or replacement expenses if a refrigerator, power generator, HVAC, forklift, trolleys, conveyors, and other equipment breaks down due to operator error, upset, and other covered perils
Food contamination–There are high risks that the food may get contaminated due to mishandling, equipment breakdown, or vermin. Food contamination insurance covers the cost of a product recall, customer medical treatment, and cleanup
| CoverWallet | NEXT (Best) | Thimble | Hiscox | |
|---|---|---|---|---|
| General liability aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $300,000/$2,000,000 |
| Commercial property coverage limit | $50,000 | $100,000 | $25,000/$500,000 | $25,000 |
| Optional policies can be added? | Yes | Yes | Yes | Yes |
| Name additional insureds for free? | Yes | Yes | Yes | Yes |
| BOP discount? | Yes | Yes | Yes | Yes |
A business owner’s policy (BOP) is the most cost-effective and efficient way to insure your department store. This usually bundles general liability coverage and commercial property coverage.
As a result, insurers generally sell BOPs at a lower rate than if you were to purchase each policy separately. Besides, it's a flexible plan as policyholders can customize their policies through additional options to fit the specific needs of their department store. Use the table above to see which insurance company offers the best business owner’s policy for department stores.
Your department store can’t run without employees. You’ll need clerks, cashiers, maintenance technicians, inspectors, and so on.
Authorities will require you to purchase workers' compensation insurance to safeguard employees against slip and fall accidents, exposure to harmful chemicals, and other work-related accidents.
When an employee sustains an injury or illness because of the tasks in your department store, workers' compensation insurance covers the costs for emergency medical care, hospitalization, medication, rehabilitation, and lost wages. And in case of death, this insurance will cover funeral expenses and sustain the family of your deceased employee.
Commercial auto insurance is a coverage for the box trucks, cargo vans, tractor-trailers, and other vehicles owned by your department store. This policy acts as a first line of defense in case something happens while your commercial vehicles are hauling cargo or delivering supplies. Commercial auto insurance functions to:
Cover liability for accidents caused by your department store’s box truck, cargo van, or any other commercial vehicle
Shoulder the repair or replacement of parts if your department store’s commercial vehicle sustains damage due to fire, lightning, theft, vandalism, weather, and other covered perils
Pay the medical treatment of the driver and passengers if ever your commercial vehicle gets involved in an accident caused by an uninsured/underinsured motorist
The policies above are the most common inclusion in the tailored insurance bundle for department stores. But note that these additional policies are also available, depending on your risk level and choice of insurance company:
Umbrella liability insurance-Umbrella liability insurance supplements the limits of your general liability policy in case it can’t provide adequate coverage because the claim is too costly or the policy limits have been exhausted
Business interruption insurance-Business interruption insurance covers the operational costs you’ll have to shoulder in case your department store’s operation is halted by a fire, renovation, relocation, or economic crisis
Employee dishonesty insurance-Employee dishonesty insurance will reimburse the money you lost after an employee or a group of employees commit theft, embezzlement, social engineering, credit card fraud, unauthorized transactions, and other dishonest acts
Employment practices liability insurance-Employment practices liability insurance will cover legal defense costs, settlements, and court judgments if an employee sues for sexual harassment, retaliation, negligent hiring, failure to promote, discrimination, wrongful termination, and other violation of employee rights
Cargo insurance-Cargo insurance reimburses the value of incoming stocks that got damaged or destroyed due to theft, vandalism, and other covered perils while in transit
Cyber liability insurance-Cyber liability insurance will cover the cost for data breach containment, customer notification, legal defense, and credit and fraud monitoring if your department store becomes a victim of a cyberattack
| Cost per Month | Cost per Year | Deductible | |
|---|---|---|---|
| General liability insurance | $40 | $480 | $0-$500 |
| Umbrella liability insurance | $60 | $720 | $500-$1,000 |
| Commercial property insurance | $115 | $1,380 | $1,000-$2,000 |
| Business owner's policy | $140 | $1,680 | $1,500 |
| Employee dishonesty insurance | $80 | $960 | $1,000 |
| Commercial auto insurance | $90 | $1,080 | $500-$1,000 |
| Workers compensation insurance | $190 | $2,280 | $1,000-$2,500 |
| Employment practices liability insurance | $85 | $1,020 | $500-$1,000 |
| Cyber liability insurance | $120 | $1,440 | $1,000-$2,000 |
| Cargo insurance | Depends on the value of items to be insured | Depends on the value of items to be insured | $500-$2,500 |
The average department store insurance cost is $40 per month or $480 per year for a $1 million general liability policy. Your premiums can be exactly the same or different based on the following factors:
Your department store's size
Inventory levels
Your store's specialty
Number of employees
The store's location
Policy limits
Deductible level
Here’s another table that shows the cost of a $1 million general liability insurance from highly rated carriers:
| Cost per Month | Cost per Year | Best for | |
|---|---|---|---|
| NEXT | $25 | $300 | Best overall; Fastest general liability insurance for department stores |
| CoverWallet | $29 | $348 | Comparing department store insurance quotes online |
| Tivly | $31 | $372 | Comparing insurance quotes for department stores over the phone |
| Thimble | $33 | $396 | On-demand coverage for department stores |
| Hiscox | $36 | $432 | Insurance for departments stores that renews automatically every year |
| Berkshire Hathaway | $40 | $480 | Robust coverage option |
| Chubb | $45 | $540 | Department stores of any size |
Get all the best quotes from leading providers in a click of a button!
It's critical to find an insurance company that can provide coverage based on the specific risks you face based on your property's value and your store's specialty. Below are the best department store insurance companies. Read some of the reviews below to know their pros, cons, and rate for a $1 million general liability policy.
Best overall
Issues an online proof of insurance instantly
Fastest general liability insurance for department stores
Great customer service and reputation
Excellent rates
Outstanding value for money
Get a 10% discount if you buy two or more policies
Couldn’t find any
NEXT works with startups and growing department stores. This insurance company’s department store insurance package doesn’t pry into what kinds of products are sold. What’s important is that you have a clean claims history and business profile. Policies you can avail are:
$1 million-$2 million general liability insurance
$1 million-$2 million product liability insurance
$380,000 commercial property insurance
Workers compensation insurance
Commercial auto insurance
Getting insurance from NEXT is easy. It has an online quotation tool that you can use to choose what policies to get, view coverage limits, and finalize the purchase. And once you’re insured, this company creates an online account where you can easily get a certificate of insurance and name additional insureds.
Best for: Best overall; Fastest general liability insurance for department stores
Average cost: $25 per month
Our rating: 10/10
Compare department store insurance quotes online
Cancel your coverage anytime
Terrorism coverage included in general liability insurance
Purchase insurance online or with the help of an agent
Not an insurance company but an insurance broker
As said earlier, many insurance companies can cover your department store. And if you want to see what most can offer, then go for CoverWallet. CoverWallet is an insurance broker that can curate the different department store insurance quotes available. A typical department store insurance package that you can get from this company offers the following:
$1 million general liability insurance
$1 million cyber liability insurance
$50,000 commercial property insurance
Workers compensation insurance
Business owner’s policy
Best for: Comparing department store insurance quotes online
Average cost: $29 per month
Our rating: 10/10
Compare department store insurance quotes over the phone
Responsive customer service
A partner of many reputable insurance companies
Always offer a coverage with limits that match your risk level
You need to call to get a quote
Tivly covers department stores through its retail insurance package that offers commercial property, general liability, umbrella liability, commercial auto, workers comp, and other business insurance solutions. You need to call a Tivly representative to compare quotes over the phone and get covered.
Best for: Comparing insurance quotes for department stores over the phone
Average cost: $31 per month
Our rating: 10/10
Quick to issue an estimate of your rates
Online quotation tool doesn’t ask a lot of questions
Numerous endorsements to your policy are available
Sells a short-term general liability policy
Can cancel your coverage instantly
BOP isn’t available if your department store is leasing or renting its space
Thimble offers the policies for department stores under its retail insurance package. What makes Thimble great is that it allows you to enjoy flexible payment plans and modify your coverage through numerous endorsements. Here’s a quick glimpse of the business insurance solutions from this company:
$1 million-$2 million general liability insurance
Optional cyber liability coverage
Optional hired/non-owned auto liability coverage
Optional customer property coverage
Business owner’s policy that offers a $25,000-$500,000 commercial property coverage
Workers compensation insurance
Best for: On-demand coverage for department stores
Average cost: $33 per month
Our rating: 9/10
Automatic policy renewal
Worldwide coverage
You can easily customize the limits of your coverage
A renowned insurance company in terms of experience
Not accredited by BBB
Hiscox covers department stores through its insurance package for general merchandise stores. Policies offered are general liability, business owner’s policy, cyber liability, and workers compensation insurance.
Your general liability insurance from this company has a $300,000-$1 million per occurrence limit with a $300,000-$2 million aggregate. The cyber liability insurance has a $250,000 per occurrence and aggregate limit. Finally, Hiscox’s business owner’s policy offers a $300,000 general liability coverage with a $25,000 commercial property coverage.
Best for: Insurance for departments stores that renews automatically every year
Average cost: $36 per month
Our rating: 9/10
The company offers THREE plan as a more robust coverage policy
Discount available for customers who pay annually
Insurance may be unavailable in some states
Berkshire Hathaway is one of the leaders in the business insurance space and offers two traditional BOP options and another more comprehensive alternative. Customers can purchase department store insurance through two channels: biBERK, an independent full-service small business insurance provider, and THREE, a relatively new approach that provides a simple three-page policy.
If you purchase a BOP through biBERK, you get general liability and commercial property coverage. Still, department store owners can customize the policy by including cybersecurity liability and employment practices liability as add-ons. THREE is a more comprehensive option that provides all BOP policies, workers' compensations, cybersecurity, business income and extra expenses, and commercial auto insurance.
Best for: Robust coverage option
Average cost: $40 per month
Our rating: 8/10
Offers general liability coverage for over 1,000 businesses in various verticals
Flexible policy options for additional coverage
Insurance available for businesses of any size
Insurance only available through an agent
No online quotes
Chubb is a globally acclaimed insurance provider with an excellent track record of providing an impressive array of business insurance policies. The company's Customarq General Liability is perhaps the best liability policy a business can have. It covers various liabilities, including bodily injury, property damage, litigation costs, etc. Unfortunately, this coverage isn't included, and business owners must purchase it independently.
However, if you'd like to purchase a tailored business insurance policy, you can invest in the provider's Continuum policy, which you can attach to your general liability insurance. It's an insurance policy that adds several coverages, such as discontinued products insurance and successor liability. Apart from that, Chubb also provides BOPs for department stores that generate below $30 million in annual revenue.
While Chubb doesn't offer online quotes, it boasts an A++ AM Best rating for financial stability. That means you can be sure the company is financially capable of settling your claim.
Best for: Department stores of any size
Average cost: $45 per month
Our rating: 8/10
1 / 5
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
1 / 5
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
1 / 5
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
5 / 5
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
5 / 5
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
Not all those who wander are lost.
Disclosure: Insuranks.com is an independent educational comparison service and an advertising-supported publisher. Some of the companies/offers that appear on the website are from our partners which we may receive compensation from. This may influence which companies/offers we write about and where and how it appears on the site. However, this does not impact our assessments. We solely highlight companies, products, and offers that can help you make smarter insurance decisions.
