Department Store Insurance: Cost & Quotes From $11/mo

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.

Department Store Liability Insurance

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. 

General Liability Insurance for Department Stores 

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.

What Are Some Examples of Unfortunate Events in Your Department Store That General Liability Insurance Can Cover?

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

Can General Liability Insurance Help if My Department Store Becomes the Target of Terrorist Attacks?

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. 

Product Liability Insurance for Department Stores 

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 

Compare Cheap Department Store Insurance Quotes Online

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Commercial Property Insurance for Department Stores 

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.

How Does Commercial Property Insurance Safeguard Your Department Store?

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

Is It Possible to Broaden the Coverage of Commercial Property Insurance to Cover the Specialized Risks of My Department Store?

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

Business Owner’s Policy for Department Stores

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. 

Workers Compensation Insurance 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 for Department Stores

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

Other Insurance Policies to Include in Your Insurance Package

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

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Department Store Insurance Cost

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

Compare Cheap Department Store Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

Best Department Store Insurance Companies

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. 

NEXT Department Store Insurance


  • 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

CoverWallet Department Store Insurance


  • 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

Tivly Department Store Insurance


  • 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

Thimble Department Store Insurance


  • 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

Hiscox Department Store Insurance


  • 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

Berkshire Hathaway Department Store Insurance


  • 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

Chubb Department Store Insurance


  • 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

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