Insuranks
Insuranks

Gift Shop Insurance: Souvenir & Novelty Insurance

For your best business protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!

For your best business protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!

#2 Compare Even More Cheap Quotes From The Best Insurers With
icon
The Cheapest Commercial Insurance Comparison Engine
Speak with Representative now
Table of contents
1. What is Gift Shop Insurance?2. Gift Shop Liability Insurance3. General Liability Insurance for Gift Shops3.1. In What Situations Can General Liability Insurance Help Your Gift Shop?3.2. How Much Coverage Can You Get from General Liability Insurance?3.3. I Have Multiple Gift Shops. Can One General Liability Policy Cover Them All?4. Professional Liability Insurance for Gift Shops 4.1. How Does Professional Liability Insurance Protect Your Business?4.2. I Am Working With a Workshop to Manufacture Handmade Souvenirs and Other Products. Do I Still Need Professional Liability Insurance?5. Product Liability Insurance for Gift Shops 5.1. Does Product Liability Insurance Cover Errors in Design?6. Commercial Property Insurance for Gift Shops 6.1. How Does Commercial Property Insurance Protect Your Business?6.2. Do I Need to Own My Gift Shop’s Building to Be Eligible for Commercial Property Insurance?6.3. Does Commercial Property Insurance Cover My Stocks?7. Business Owner’s Policy for Gift Shops 7.1. Are Add-Ons Included?7.2. How Do You Become Eligible for a Business Owner’s Policy?8. Worker's Compensation Insurance for Gift Shops 8.1. My Gift Shop is Family-Run. Do I Still Need Workers' Compensation Insurance?9. Cargo Insurance for Gift Shops 10. Commercial Auto Insurance for Mobile Gift Shops 10.1. Does Commercial Auto Insurance Cover the Stocks in My Mobile Gift Shop?11. Employee Dishonesty Insurance for Gift Shops12. Cyber Liability Insurance for Gift Shops 13. Do I Have Other Coverage Options if I Become Ineligible for Gift Shop Insurance?14. Gift Shop Insurance Cost15. Best Gift Shop Insurance Companies15.1. NEXT Gift Shop Insurance 15.1.1. Pros15.1.2. Cons15.2. CoverWallet Gift Shop Insurance 15.2.1. Pros15.2.2. Cons15.3. Tivly Gift Shop Insurance 15.3.1. Pros15.3.2. Cons15.4. Hiscox Gift Shop Insurance 15.4.1. Pros15.4.2. Cons

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. 

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.

What is Gift Shop Insurance?

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.


Gift Shop Liability Insurance

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. 


General Liability Insurance for Gift Shops


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?YesNoExcluded
Hired/non-owned auto liability coverage included?YesNoExcluded
Equipment breakdown floater included?No YesExcluded
Can you get a certificate of insurance online?YesYesYes
Name additional insureds?YesYes
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. 


In What Situations Can General Liability Insurance Help Your Gift Shop?

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


How Much Coverage Can You Get from General Liability Insurance?

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. 


I Have Multiple Gift Shops. Can One General Liability Policy Cover Them All?

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. 


Professional Liability Insurance for Gift Shops 


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?YesYesYes
Waiver of subrogation included?YesNoCan 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. 


How Does Professional Liability Insurance Protect Your Business?

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


I Am Working With a Workshop to Manufacture Handmade Souvenirs and Other Products. Do I Still Need Professional Liability Insurance?

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. 


Product Liability Insurance for Gift Shops 

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. 


Does Product Liability Insurance Cover Errors in Design?

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. 

Compare Gift Shop Insurance Quotes Online

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

Commercial Property Insurance for Gift Shops


CoverWalletNEXT (Best)Hiscox
Building coverage limit (minimum)$50,000$260,000$25,000
Contents coverage limit (minimum)$50,000$18,000$25,000
Outdoor signsExcluded$2,500Excluded
Accounts receivableExcludedExcludedIncluded
Money and securitiesExcluded$2,500Included
Lock and keysExcluded$2,500Excluded
Business interruption floaterExcludedIncludedIncluded
Equipment breakdown floaterExcludedIncludedExcluded
Inland marine insurance floaterExcludedExcludedExcluded
Employee dishonesty floaterExcluded$5,000Included


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.


How Does Commercial Property Insurance Protect Your Business?

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


Do I Need to Own My Gift Shop’s Building to Be Eligible for Commercial Property Insurance?

No. You can purchase and use a commercial property policy to insure the building your gift shop is renting or leasing.


Does Commercial Property Insurance Cover My Stocks?

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.


Business Owner’s Policy for Gift Shops


CoverWalletNEXT (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?YesYesYes
Name additional insureds for free?YesYesYes
BOP discount?YesYesYes


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.


Are Add-Ons Included?

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.


How Do You Become Eligible for a Business Owner’s Policy?

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.


Worker's Compensation Insurance for Gift Shops

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.


My Gift Shop is Family-Run. Do I Still Need Workers' Compensation Insurance?

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.


Cargo Insurance for Gift Shops

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


Commercial Auto Insurance for Mobile Gift Shops

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


Does Commercial Auto Insurance Cover the Stocks in My Mobile Gift Shop?

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.


Employee Dishonesty Insurance for Gift Shops

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


Cyber Liability Insurance for Gift Shops

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.


Do I Have Other Coverage Options if I Become Ineligible for Gift Shop Insurance?

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.

Rank and Review Insurance Companies

Help others make better decisions

Show more

Gift Shop Insurance Cost


Cost per MonthCost per YearDeductible
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 MonthCost per YearBest for
NEXT$25$300Best overall; Fastest general liability insurance for gift shops
CoverWallet$35.83$429.96Gift shop insurance online quotes comparison
Tivly$39$468Comparing gift shop insurance quotes over the phone
Hiscox$40$480Gift shop insurance with automatic renewal

Compare Gift Shop Insurance Quotes Online

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

Best Gift Shop Insurance Companies

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. 


NEXT Gift Shop Insurance

Pros

  • 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 

Cons

  • 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


CoverWallet Gift Shop Insurance

Pros

  • 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

Cons

  • 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


Tivly Gift Shop Insurance

Pros

  • Responsive customer service

  • A partner of many reputable insurance companies

  • Compare gift shop insurance quotes over the phone

Cons

  • 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


Hiscox Gift Shop Insurance

Pros

  • 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

Cons

  • 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


Recent Reviews

Recent Posts