Running a gift shop isn’t as easy as many think. On busy days, some of the products on display can get stolen. A fire can break out somewhere and cause utter devastation. Customers can also get injured while shopping. A customer can also sue you because his kid got injured by the toy from your shop.
Gift shop insurance grants immediate protection when such undesirable situations happen. Read this guide to know the functions of the policies included, the cost of premiums, and the best companies.
Gift shop insurance is a specialty insurance program for gift shops that sell souvenirs, figurines, toys, and other related novelty products. Insurance policies you can avail from this are general liability, commercial property, product liability, workers compensation, inland marine, cyber liability, and more.
General liability insurance, product liability insurance, and professional liability insurance are the types of gift shop liability insurance. Let’s discuss how these policies work in the following sections.
| CoverWallet | NEXT (Best) | Hiscox | |
|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $300,000/$2,000,000 |
| Aggregate limit | $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 |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $1,000,000 |
| Tenant’s legal liability coverage limit | $100,000 | $100,000 | $100,000 |
| Waiver of subrogation included? | Yes | No | Excluded |
| Hired/non-owned auto liability coverage included? | Yes | No | Excluded |
| Equipment breakdown floater included? | No | Yes | Excluded |
| Can you get a certificate of insurance online? | Yes | Yes | Yes |
| Name additional insureds? | Yes | Yes | Yes |
| Deductible | $0 | $0 | $0 |
Your gift shop allows people to access its premises. You have liability if something happens to customers and other persons. This is why a general liability policy must always be a part of your gift store insurance package.
This policy will grant protection if customers file a claim after sustaining injuries or property damage while they’re on the premises of your gift shop. Use the table above to see which insurance company offers the best general liability insurance.
General liability insurance will provide coverage if the following scenarios happen in your gift shop:
A customer is inspecting the quality of a snow globe and drops the product. He gets cut by the shards of glass
A customer slips and falls
A customer gets electrocuted while using the stuffed toy vending machine of your gift store
The general liability insurance for gift shops has a $1 million-$2 million per occurrence and aggregate limit. But it’s possible for you to find a general liability policy with a $300,000-$1 million limit, which is designed for small gift stores.
A single general liability policy can cover all of your gift shops, provided that all of them are located in the same city, municipality, or town. If your gift shops are in different cities or states, then each must have their own general liability policies.
| CoverWallet (Best) | NEXT | Hiscox | |
|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000 |
| Name additional insureds? | Yes | Yes | Yes |
| Waiver of subrogation included? | Yes | No | Can be included |
| Deductible | $500 | $500 | $50/$10,000 |
Does your gift shop create handmade and customized souvenirs for events such as birthday parties, weddings, and graduation parties? If this is the case, professional liability insurance must be part of your commercial souvenir insurance program. Use the table above to see which insurance companies offer the best professional liability insurance for gift shops.
Professional liability insurance will protect your gift shop if a client files a claim because:
You failed to finish making the requested handmade products on time
The number of delivered products is lesser than the count agreed upon by you and the client
The cost of your finished souvenirs was higher than the cost reflected in the quote you gave to the client
The fact that you’re the one selling the goods makes you liable for any issues that happen. That said, you still need your own professional liability coverage. By the way, to get an extra layer of protection, ask the workshop to add you as an additional insured in the professional liability policy of their workshop insurance package.
Most insurance companies offer product liability insurance as an automatic inclusion in your gift shop’s general liability policy.
So how does product liability insurance work? This insurance, also included in craft insurance programs, will cover medical treatments, reimbursements, and legal expenses if a client buys a souvenir or any other product from your gift shop and sustains bodily injuries or property damage thereafter.
Here’s an example to make things clearer. Suppose a customer bought a toy for his kid from your gift shop. Upon getting home, the customer gives the toy to his kid. The kid plays with the toy and puts it in his mouth. One of the toy’s pieces gets detached and the kid chokes on this. Product liability insurance will then grant coverage if the customer files a claim.
Yes. Product liability insurance can take care of claims as a result of errors in design. This is why this coverage is very useful if your gift shop manufactures handmade products. Say if the design of the custom cups didn’t coincide with the client’s initial instructions, then product liability insurance can cover the cost of product recall and extra labor.
Get all the best quotes from leading providers in a click of a button!
| CoverWallet | NEXT (Best) | Hiscox | |
|---|---|---|---|
| Building coverage limit (minimum) | $50,000 | $260,000 | $25,000 |
| Contents coverage limit (minimum) | $50,000 | $18,000 | $25,000 |
| Outdoor signs | Excluded | $2,500 | Excluded |
| Accounts receivable | Excluded | Excluded | Included |
| Money and securities | Excluded | $2,500 | Included |
| Lock and keys | Excluded | $2,500 | Excluded |
| Business interruption floater | Excluded | Included | Included |
| Equipment breakdown floater | Excluded | Included | Excluded |
| Inland marine insurance floater | Excluded | Excluded | Excluded |
| Employee dishonesty floater | Excluded | $5,000 | Included |
Unexpected occurrences, such as fire breakouts, can have a significant impact on your gift shop’s operations. Buy commercial property insurance and you can increase your gift shop’s survival when tragedies happen. Use the table above to see which insurance company offers the best commercial property insurance for gift shops.
Commercial property insurance will reimburse the actual cash value or replacement cost of your gift shop’s building if it gets damaged or destroyed by:
Fire
Theft
Vandalism
Riot
Civil commotion
Sinkhole collapse
Volcanic action
Lightning
Weather
Falling objects
Impact
Aircraft
Vehicle
Sprinkler leakage
No. You can purchase and use a commercial property policy to insure the building your gift shop is renting or leasing.
Yes. Commercial property insurance will cover the estimated value of your gift shop’s stocks that got damaged or lost because of a covered peril. Note that coverage applies only to stocks within the premises of your business.
| CoverWallet | NEXT (Best) | Hiscox | |
|---|---|---|---|
| General liability aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $300,000/$2,000,000 |
| Commercial property coverage limit | $50,000 | $260,000 | $25,000 |
| Optional policies can be added? | Yes | Yes | Yes |
| Name additional insureds for free? | Yes | Yes | Yes |
| BOP discount? | Yes | Yes | Yes |
A gift shop and novelty insurance package can offer a business owner’s policy. We suggest that you don’t miss this deal. A business owner’s policy is one of an insurance company’s ways of helping you protect your business without spending much on premiums. Use the table above to see which insurance company offers the best business owner’s policy for gift shops.
A business owner’s policy combines general liability insurance and commercial property insurance. Its cost is more affordable than when you bought commercial property and general liability insurance separately.
The add-ons in a general liability policy and commercial property policy are automatically included. And so, a business owner’s policy is a very comprehensive coverage for your gift shop business.
Eligibility for a business owner’s policy is determined by business profile. If the insurance company sees that your gift shop is growing, then they'll surely offer it. Coverage is rejected if the opposite is true.
Don’t forget about worker's compensation insurance if your gift shop has one or more part-time and full-time employees.
Worker's compensation insurance will cover the expenses for medical treatment, hospitalization, medication, rehabilitation, retraining, lost wages, and death benefits if an employee sustains a work-related injury or disease.
There’s no going around in getting this coverage. Failure to get workers comp when you’re an employer is punishable by law.
You still need to purchase worker's compensation insurance if you’re in a state where family members who work for your business are considered employees. If you’re in a state where the opposite is true, then there’s no need to get this coverage.
Manufacturers and wholesalers ship products to your gift shop. Your gift shop also sends shipments to customers and partners.
The damage or destruction of shipment is an exposure that’s excluded in your commercial property policy.
This is why you need cargo insurance. Cargo insurance will reimburse the estimated value of your shipment that gets destroyed or damaged because of:
Fire
Theft
Vandalism
Upset
Weather
Jettison
Vehicular accident
A mobile gift shop makes money through a box truck, trailer, cargo van, or bus that’s customized to display souvenirs and other products. If this is your business, you need to purchase commercial auto insurance that will:
Cover the medical treatment of third parties if your mobile gift shop causes an accident while running
Cover your medical treatment if your mobile gift shop gets involved in an accident caused by an uninsured/underinsured vehicle
Most likely not. Commercial auto insurance only covers the vehicle and the installments inside it. However, you can cover the value of stocks if a vehicular accident happens by purchasing inland marine insurance.
Your gift shop’s cashier or manager might commit dishonest acts. Insurance companies cover the financial losses from this exposure through employee dishonesty insurance.
Employee dishonesty insurance helps your gift shop shoulder investigation expenses and recover lost money if an employee commits any of these:
Social engineering
Theft
Money laundering
Embezzlement
Unauthorized use of credit cards
Fraudulent refunds
It’s smart to also have cyber liability insurance if your gift shop processes payments through credit cards and online banking systems.
The computer your gift shop uses to process digital transactions can be hacked. You might face losses and lawsuits if this results in the leakage of credit card information, phone numbers, addresses, and other sensitive data.
In connection, cyber liability can help sort things out. If your system is hacked, this will cover the professional services for credit and fraud monitoring, data breach containment, legal defense, and public relations.
Get covered through a retail insurance package if an insurance company can’t cover you through its gift shop insurance program.
Say if you’re selling online instead of through a physical store, then you can get covered through e-commerce insurance.
Another thing to do is to consider getting in touch with the agent of the insurance company if you become ineligible for a gift shop insurance package because he or she can arrange a related coverage option that will fit your needs.
| Cost per Month | Cost per Year | Deductible | |
|---|---|---|---|
| General liability insurance | $49 | $588 | $0-$500 |
| Professional liability insurance | $52 | $624 | $0-$500 |
| Commercial property insurance | $65 | $780 | $1,000-$2,500 |
| Business owner’s policy | $100 | $1,200 | $500-$1,000 |
| Workers compensation insurance | $125 | $1,500 | $2,000-$5,000 |
| Cyber liability insurance | $60 | $720 | $500-$1,000 |
| Employee dishonesty insurance | $80 | $960 | $1,000 |
The average gift shop insurance cost is $49 per month or $588 per year for a $1 million general liability policy. Factors that affect the cost of premiums are business size, business history, claims history, annual revenue, number of employees, location, and annual payroll.
Here’s another table showing just how much the recommended companies charge for a $1 million general liability insurance for gift shops:
| Cost per Month | Cost per Year | Best for | |
|---|---|---|---|
| NEXT | $25 | $300 | Best overall; Fastest general liability insurance for gift shops |
| CoverWallet | $35.83 | $429.96 | Gift shop insurance online quotes comparison |
| Tivly | $39 | $468 | Comparing gift shop insurance quotes over the phone |
| Hiscox | $40 | $480 | Gift shop insurance with automatic renewal |
Get all the best quotes from leading providers in a click of a button!
When getting gift store insurance, you don’t only need to understand how it works. You’ll also need to make sure that you’re working with the right company.
That said, below are some reviews of the best gift shop insurance companies. Read to know their pros, cons, and cost of a $1 million general liability insurance.
Best overall
Issues an online proof of insurance instantly
Fastest general liability insurance for gift shops
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 is an insurance company that specializes in providing coverage for businesses through pre-made insurance bundles.
This company covers your gift shop through its retail store insurance package. You avail this as a deluxe coverage that offers the following:
$1 million-2 million general liability insurance
$1 million-2 million product liability insurance
$260,000 commercial property insurance
$18,000 stocks and business interruption insurance
Workers compensation insurance
Best for: Best overall; Fastest general liability insurance for gift shops
Average cost: $25 per month
Our rating: 10/10
Compare gift shop insurance quotes online
Easy online policy management
Name an unlimited number of additional insureds for free
Buy a quote online or with the help of an agent
Not an insurance company but an insurance broker
CoverWallet isn’t an insurance company but an insurance broker. Nonetheless, this is okay as it means that your quote can come from several insurance companies.
Use CoverWallet’s online quotes comparison platform to know the features and cost of the inclusions in a particular gift shop insurance quote. Examples of policies you can get from CoverWallet are:
$1 million-$2 million general liability insurance
$50,000 commercial property insurance
Business owner’s policy with a $1 million general liability coverage and $50,000 commercial property coverage
Workers compensation insurance
Best for: Gift shop insurance online quotes comparison
Average cost: $35.83 per month
Our rating: 10/10
Responsive customer service
A partner of many reputable insurance companies
Compare gift shop insurance quotes over the phone
You need to call to get a quote
Tivly’s gift shop insurance offers general liability insurance, commercial auto insurance, commercial property insurance, and crime insurance. You need to call a representative to know the limits of your coverage and compare quotes over the phone.
Best for: Comparing gift shop insurance quotes over the phone
Average cost: $39 per month
Our rating: 10/10
Gift shop insurance automatically renews every year
Worldwide coverage
File a claim online or over the phone
Different channels in handling customer queries and concerns
You can’t get a stand-alone general liability policy online
Consider working with Hiscox if you’re looking for an insurance company that automatically renews your coverage every year and has a very responsive claims process. Your gift shop insurance package from this company offers:
A Business owner’s policy with a $300,000-$2 million general liability coverage and $25,000 commercial property coverage
$250,000 cyber liability insurance
Best for: Gift shop insurance with automatic renewal
Average cost: $40 per month
Our rating: 10/10
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.
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