Furniture Store Insurance: Quotes From Only $5

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A furniture store is a retail business, and it can get covered through a retail insurance plan. However, furniture store insurance provides the best protection. Our guide will discuss the policies included, how much you’ll pay for premiums, which companies to approach for the best coverage, and other relevant topics. 

What Does Furniture Store Insurance Offer?

A furniture store insurance package, similar to an antique shop insurance package, offers general liability, commercial property, workers' compensation, cyber liability, and business owner’s policies. Other policies might be offered if your furniture store has specialized risks. 

General Liability Insurance for Furniture Stores

The biggest problem that furniture stores face is claims from customers who get injured while shopping or testing merchandise. Proving this is American Furniture Warehouse which had to pay $1.2 million to a customer who fell from the ledge of one of its stores. 

Your furniture store might not be as established. However, this won’t stop customers from filing costly lawsuits now or in the future. And so, always think of including a general liability policy in your furniture shop insurance bundle. Use the table above to see which insurance company offers the best general liability insurance for furniture stores. 

How Does General Liability Insurance Help Your Furniture Store?

General liability insurance helps to cover claims for bodily injuries or property damage that customers and other third parties file after experiencing an accident in the premises of your furniture store.

In Which Situations Can General Liability Insurance Help Your Furniture Store?

Here are some situations where general liability insurance can provide coverage:

• A customer slips and falls while moving around 

• A customer trips on a sharp object and cuts her toe

• The customer’s clothing gets caught in the protrusion of a furniture display and is torn

What is the Minimum Amount of Coverage Your Furniture Store Can Get From General Liability Insurance?

General liability insurance for furniture stores has a $1 million-$2 million per occurrence limit and a $1 million-$2 million aggregate limit. 

What Expenses Does General Liability Insurance Cover?

If a claim is filed, general liability insurance will cover these expenses:

• Medical treatment

• Reimbursement for the damaged property

• Settlements

• Attorney fees and other legal expenses

• Court judgments

My Customer is Holding Me Liable for a Defective Product, Can I Use General Liability Insurance?

Yes. Your furniture store’s general liability insurance automatically comes with a $1 million or $2 million product liability coverage. You can use this to reimburse the customer’s losses and shoulder the cost of product recall.

I’m Renting a Small Commercial Space and It Got Damaged by Fire. Will General Liability Insurance Help?

General liability insurance comes with a rented premises liability coverage. It will provide a $100,000-$300,000 reimbursement if ever the landlord or property custodian files a claim against you. 

Commercial Property Insurance for Furniture Stores 

Fires can mean devastating losses for furniture store owners. For example, a furniture store operating in Union Avenue, California lost $3 million in a fire breakout. 

Imagine yourself being in the same situation. And so, consider purchasing a commercial property policy from your furniture shop insurance. Use the table above to see which insurance company offers the best commercial property insurance for furniture stores. 

What Does Commercial Property Insurance for Furniture Stores Cover?

Your furniture store’s commercial property insurance is an all-risk coverage that takes effect if these exposures happen:

• Fire

• Theft

• Vandalism

• Civil commotion

• Sprinkler leakage

• Volcanic action

• Lightning

• Weather

• Impact

• Falling objects

• Aircraft

• Vehicle

Does Commercial Property Insurance Also Protect the Unsold Furniture in My Store’s Showroom?

Yes. Commercial property insurance comes with contents coverage which will reimburse your financial losses if the unsold furniture in your store’s showroom gets damaged or destroyed. In fact, aside from the products you're selling, coverage also applies to other contents such as HVAC, power generators, valuable papers and records, computers, and POS machines.

I Have Incoming Stocks but They Got Destroyed During Transportation. Are These Covered by Commercial Property Insurance?

No. Commercial property insurance doesn’t cover pieces of furniture that wholesalers are delivering to you. However, coverage can apply if you have endorsed inland marine insurance to your furniture store’s commercial property insurance. 

I Own Several Furniture Stores. Can One Commercial Property Insurance Cover All of Them?

Insurance companies, by default, only allow their commercial property insurance to cover one furniture store. However, during the purchase of the policy, you might be asked if you have more than one location. If you say that this is the case, then insurance companies will add a blanket coverage endorsement that allows your commercial property insurance to cover all of your furniture stores albeit they’re in different locations. 

Business Owner’s Policy for Furniture Stores 

You ensure the survival of your business by purchasing commercial property and general liability insurance. There’s no need to buy each of these insurance policies separately as there’s a business owner’s policy. Use the table above to see which insurance company sells the best business owner’s policy for furniture stores. 

What Makes A Business Owner’s Policy Different?

A business owner’s policy is a fusion of commercial property insurance and general liability insurance. What makes it different is that it can serve two purposes and that is to:

• Cover expenses if a third party holds you liable for bodily injuries or property damage

• Cover financial losses if your furniture store and its contents get damaged or destroyed due to a covered peril

How Much Coverage Can You Get From a Business Owner’s Policy?

The business owner’s policy for furniture stores offers a $1 million-$2 million general liability coverage and a $10,000-$500,000 commercial property coverage.

Can Your Furniture Store’s Business Owner’s Policy Have Add-ons?

Yes. Business interruption, inland marine, hired/non-owned auto coverage, and cyber liability coverage are some of the add-ons you can include in your furniture store’s business owner’s policy. 

Workers Compensation Insurance for Furniture Stores 

As your furniture store grows and becomes busier, you’ll eventually hire someone to mind the cash register, talk with customers, keep financial records accurate, and check the inventory. Whether you like it or not, you will need to purchase workers' compensation insurance as soon as your furniture store has one or more employees. 

How Does Workers Compensation Insurance Help Your Furniture Store?

Workers' compensation insurance allows your furniture store to provide compensation if an employee experiences a work-related accident. This will allow you to cover an employee’s medical treatment, hospitalization, medication, rehabilitation, retraining, lost wages; and in case of death, funeral expenses and allowance to dependents.

Which Employees in My Furniture Store Should Be Covered by Workers Compensation Insurance?

The full-time and part-time employees of your furniture store must be covered by workers' compensation insurance. Independent contractors and volunteers don’t need to be covered but can be named as additional insureds. 

How Much Workers Compensation Insurance Should My Furniture Store Have?

It’s hard to say how much workers' compensation coverage you need to have. However, rest assured that the worker's compensation policy you get from private insurance carriers already complies with the minimum limits mandated by your state’s workers' comp laws. 

Cyber Liability Insurance for Furniture Stores 

Cyber liability insurance is important if your furniture store owns a website that sells products and collects customer information. This insurance will protect you from unexpected expenses if you experience a cybersecurity error or cyber attack. 

What Exposures Does Cyber Liability Insurance for Furniture Stores Cover?

Cyber liability insurance for furniture stores is underwritten to cover these exposures:

• Denial of service attacks

• Man-in-the-middle-attacks

• Ransomware

• Malware

• Phishing

• Data breach

• Other types of cyber attacks

• Cybersecurity errors 

What Expenses Does Cyber Liability Insurance Cover?

Your furniture store’s cyber liability insurance provides the money for these expenses when the exposures we mentioned happen:

• Customer notification

• Professional services for containing and fixing the cyberattack or cybersecurity issue 

• Credit and fraud monitoring expenses

• Legal costs if affected parties and authorities file a lawsuit against your furniture store

Commercial Auto Insurance for Furniture Stores

A commercial auto policy must be part of your furniture shop insurance if your store delivers furnishings to clients using its own vehicles. Here’s a quick summary of the functions of commercial auto insurance:

• Pay for the medical treatment of third parties who were injured by your furniture store’s commercial vehicle

• Pay the medical treatment of the driver and passengers if your furniture store’s commercial vehicle got involved in an accident that an uninsured/underinsured driver caused

• Cover repair or replacement costs if your furniture store’s commercial vehicle sustained damage because of fire, theft, collision, weather, and other covered perils

• Shoulder the expenses for emergency roadside services if your commercial vehicle experiences issues while at a specific distance

What Vehicles Can Your Furniture Store Insure With Commercial Auto Insurance?

You can use commercial auto insurance to cover any type of vehicle for furniture delivery such as box trucks, cargo vans, flatbed trucks, and pickup trucks. Insurance companies also allow you to cover trailers and other attachments for loading cargo. 

More of Your Questions Answered

My Furniture Store Mainly Makes and Sells Cabinetries, Am I Still Eligible for Furniture Store Insurance?

You’re still eligible but coverage might not be very comprehensive and there will be gaps. If a large portion of your furniture store’s revenue is from the manufacture and sales of cabinetries, we suggest that you go for a cabinet maker insurance. 

I Sell Furniture Online, Are There Other Coverage Options If I’m Ineligible for Furniture Store Insurance?

Go for e-commerce insurance if you sell furniture online through a website or online selling platforms. This is the better option because you get more comprehensive coverage for exposures unique to running an online furniture store. 

Furniture Store Insurance Cost

The average furniture store insurance cost is $45.05 per month or $540.62 per year for a $1 million general liability policy.  

Now, you may be wondering exactly what factors go into determining how much your insurance carrier will charge you for coverage. The first thing to account for is your history of running a furniture business. If your business has a history of accidents or making claims, then your premium will be higher.

Another factor is how long you’ve been selling furniture. Insurance companies will be more likely to trust you if you’ve been selling furniture for a longer time. If your business is a new one, carriers may be a little hesitant about giving you a better rate.

Insurers will also look at the size of your business to figure out how much they should be charging you for coverage. A larger business will have to pay more for their furniture shop insurance because they have more customers coming through their doors and increasing the risk their insurer has to deal with.

Here’s another table that shows how much the recommended carriers charge for their $1 million general liability insurance for furniture stores: