Fashion & Clothes Shop Insurance: Quotes from $5

We’ve all been there, you just got out of the hair salon, you’re wearing your favorite jewelry, and you feel like a million bucks. If we didn’t have businesses like these, it would be difficult for us to be our best selves, and this is also the case for fashion and clothing stores, but have you ever thought about the risk of running one of these businesses? For example, what if one of the t-shirts or shoes you’re selling causes rashes and leaves the customer in discomfort? Heck, it’s not even impossible for you to source a defective item from the local tailors and get in trouble for it. 

Your clothing store could go under if it doesn’t have the right insurance coverage, and that’s what we’re here to discuss today. In this guide, we’re going to look at the things you need to know about insurance for clothing businesses and fashion shops. We’ll cover the various types of insurance that are available to clothing stores and then we’ll discuss how much you can expect to pay for your coverage. 

Clothing Business Liability Insurance

If you’re looking for an insurance policy for your clothing business, then odds are that you’ll want a general liability policy. General liability insurance is beneficial for clothing stores because it defends  you from situations in which you would be held liable for the following situations:

  • An allergic client tries a dress without knowing that the fabric used by the manufacturer causes allergies. 
  • A client suffers from asthma caused by dust clinging on some clothes displayed.
  • An employee gets injured by an angry client who bought the wrong dress and cannot be given a refund

However, injuries aren’t the only thing covered by clothing business liability insurance. This type of clothes shop insurance will also protect you from people who want to come after you for expenses for property damage that  may have resulted from:

  • Your clothing store lacks space which causes a client to snag his hand on a dress and drop his phone in the process
  • Some metal racks grab hold of a client’s limited edition clothes 
  • Poorly maintained signage drops on a client’s car parked in front of the clothing store

Clothing Business Insurance

If you’re searching for a more versatile clothing boutique insurance policy, then you’ll probably be a fan of clothing business insurance, also known as a BOP (Business Owner’s Policy). This isn’t actually a single insurance policy but rather a couple of policies bundled together for a better price.

A business insurance policy essentially combines liability insurance with commercial property insurance. If you’re using a building as a place of work, you have to expect to pay more for your insurance because the minute you have people coming in more frequently, that increases the risk that the insurance carrier is taking.

The commercial property insurance policy will apply to the structures of your building, covering everything that sustains damage from windows, to glass panes, paintwork, roofing, ceiling, and so on. Most commercial property insurance policies will also apply to any tools or equipment that you have in the store, though they may be subject to more stringent limits. 

As we’ve already mentioned, BOPs also come included with liability insurance. The exact kind of liability insurance depends on the BOP that you have. Some of them will come included with a public liability policy but the vast majority of them will come with a general liability insurance policy because of the money you save with this kind of bundled insurance. 

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Fashion Shop Insurance Cost

How much you end up paying for your fashion shop insurance depends on a variety of things that may not necessarily be under your control. For example, if you have a history of making mistakes and filing claims, insurance companies will jump up your fashion shop insurance premiums. 

Aside from that, fashion shop insurance will also be more or less expensive depending on the size of the clothing store that you’re trying to get insurance for. Larger businesses tend to have higher insurance rates whereas smaller ones typically are a lot more affordable to insure. 

The cost of insurance is so dependent on the size of your business because your business’s size is directly linked to the amount of risk that an insurance company is taking on when they work with you. Larger companies tend to see more people come through their doors over the course of a year, meaning that there’s a higher chance of someone getting injured or suffering property damage. 

Because of the wide variety of prices and insurance premiums that people can expect to pay based on their clothing business, we used a relatively average clothing store to get the following estimates. These prices are for a medium-sized business that has no history of insurance claims. 

Company Cost per month Cost per year Best for
The Hartford $44 $528 BOP insurance
AXA $43 $516 Property coverage
State Farm $48 $576 Coverage including business signage
Average Cost $103 $1,236

While these numbers may vary based on some of the factors that we mentioned earlier, the average price that a clothing shop owner can expect to pay for insurance coverage is $103 per month and $1,236 annually for a $1 million general liability coverage.

Insurance for Small Fashion Business

If you’re trying to get insured as a smaller fashion business or clothing store, then you’ll likely end up paying a little bit less than the rates that we mentioned above. Most smaller businesses can expect to pay about $37 a month for their insurance coverage, coming out to a total of about  $444 per year for a $1 million general liability coverage.

If you don’t run a shop where you regularly have customers coming in (perhaps you’re doing business online), you can expect to pay quite a bit less for your insurance.

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Best Clothing Store Insurance Companies

Figuring out which clothing store insurance carrier will work best for you will help ensure that you get the best rates possible in return for quality service. For example, a better company will ensure that your claims are responded to more swiftly and that you will get better customer service. 

Unfortunately, knowing which company will serve you best is often a challenge, especially if you don’t have the patience to deal with getting a dozen different quotes. Since we want to make the insurance buying process as simple as possible for you, we’ve gathered three of the top insurance companies. Read to know their pros, cons, and pricing for a $1 million general liability coverage.   

The Hartford Fashion Store Insurance

One of the oldest insurance companies in America, The Hartford was founded all the way back in 1810. It began in Hartford, CT, as you would expect from the company’s name. While Chubb was recently slated to take over The Hartford, the deal ended up falling through after negotiations grinded to a halt.

The Hartford Policy Details

The Hartford covers clothing stores under its Boutique Insurance policy. This insurance type includes a few different forms of coverage, but their most popular option is their BOP. This policy combines the usual general liability and commercial property coverages, but it also includes business income insurance.

  • Allows you to avail of an online certificate of insurance, which is important if you’re about to work with contractors
  • Flexible BOP insurance policy
  • BOP is might be the only insurance clothing stores find useful

Average cost : $44

Best for : BOP insurance

Our rating : 5/5

AXA Fashion Store Insurance

AXA is a multinational insurance company that is technically based in France but they have smaller bases all around the world, allowing them to provide insurance to countless customers in regions like America, the Middle East, Europe, and Africa. 

AXA Policy Details

AXA offers a specific insurance policy for clothing shops, and their coverage includes public liability insurance. They even offer commercial property insurance with glass replacement within 24 hours and opt-in accidental damage cover.

  • Very proactive commercial property insurance
  • Offers generous limits and forgiving deductible
  • Customer service needs improvements

Average cost : $43

Best for : Property coverage

Our rating : 4/5

State Farm Fashion Store Insurance

State Farm is the single largest provider of auto as well as property and casualty insurance in the USA. One of the things that sets them apart from many other insurance providers is that they use captive agents, meaning that their agents can only sell their products.

State Farm Policy Details

State Farm doesn’t have specific policies for clothing stores but their agents tailor policies to fit your exact needs. They offer a huge range of coverage options, including property, liability, loss of income, business interruption, and a lot more. While getting a quote, you’ll be able to add in whatever your clothing business needs most.

  • Customizeable coverage
  • Excellent customer service
  • Provides coverage for business signage
  • Options for buying are limited to certified State Farm agents and so, you might find it hard to find discounted and cheap coverages

Average cost : $48

Best for : Coverage including business signage

Our rating : 5/5 

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