Gift Shop Business Insurance
In the insurance world, you’ll rarely ever get as good of a deal for something if you purchase it individually. Insurance companies provide discounts for bundled policies (maybe 5% or 10%), and you can get a cheaper price than you would have than buying insurance policies individually..
Perhaps the most common form of bundled gift shop and souvenir insurance consists of BOPs (Business Owner Policies). These policies include several different forms of coverage, but the most common ones tend to include two components; general liability insurance and commercial property insurance.
Whether a policy includes general or public liability insurance heavily depends on the policy itself and how much you’re paying for it. However, commercial property coverage is usually similar from policy to policy, protecting the store itself as well as some of the items within it.
Keep in mind that some BOPs can feature more than just these types of coverage, though that always depends on the insurance carrier that is offering it. Some may even offer specific kinds of cover for gift shops, like content coverage that will support the myriad of items you’ll find in one of these stores.
Gift Shop Insurance Cost
Your premium for gift shop insurance is not easy to anticipate because the number of employees, size of business, revenue, and other factors that affect the cost of insurance are unique to each business..
Larger stores see customers more frequently than smaller ones, which increases the chance of something going wrong.However, there’s more to consider than just the size of your gift shop when determining the cost of your insurance policy. Insurance carriers will also take the time to look at your history with other insurers before they offer you a quote. If your insurance company sees that you’ve had several claims in the past, your insurance will become more expensive.Insurance is an industry that is predicated on risk, and insurance premiums are always directly linked to it.
We’ve put together the following table of the average cost of insurance for a gift shop for the companies that we’re going to review in our guide. To get this info, we used a medium-sized gift shop that had no claims filed in the past.
| Company | Cost per month | Cost per year | Best for |
|---|
| Zurich | $34 | $408 | Gift shop property insurance |
| AXA | $36 | $432 | Large gift shops |
| State Farm | $40 | $480 | Custom coverage |
| Average Cost | $83.33 | $999.96 |
|
Using these numbers, we’ve established that the average cost of insurance for a gift shop is just over $83.33, coming out to a yearly cost of $999.96 for a $1 million general liability coverage. Remember that smaller stores will not have the same cost of insurance, so you may still need to get a quote yourself if you’d like the most accurate numbers. These are merely a baseline.
Insurance for Souvenir Stores
Souvenir stores sometimes have separate insurance policies from gift shops, and their insurance is more affordable due to a combination of factors. First off, souvenir stores tend to be a little bit smaller than gift shops, and they often have less varied and expensive merchandise.
However, when it comes to property insurance, souvenir stores may be pricier to insure because they’re often located in areas frequented by tourists.
