Gift Shop Insurance: Souvenir & Novelty Insurance

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Working retail can be challenging, regardless of whether it’s a flower shop , furniture store , or a gift shop and running any of these can weigh heavily on the mind, especially when it comes to matters of insurance. In this article, we’re going to take a look at the intricacies of gift shop insurance.

We’ll start off by addressing the various forms of gift shop insurance that are available so that you have a better idea of what policy will suit you best. After that, we’ll discuss how much it’s going to cost you to get covered. When that’s all squared away, we’ll review three of the best novelty insurance companies out there so that you can pick the right carrier for your needs.

Gift Shop Liability Insurance

General liability insurance is common amongst retail business owners who run souvenir stores and gift shops. Most businesses can benefit from this coverage because it allows them to avoid some of the most imminent (and some of the most expensive) dangers that they have to deal with such as:

  • When an employee suffers from fatigue while working
  • When a client gets cut by the scissor used to wrap the gift bought
  • A rushing employee bumps into a client who then suffers from a minor arm fracture

However, general liability insurance applies to more than just clients getting injured in your gift shop. It can also cover for property damage which typically happens when:

  • Some computer wirings in the cashier's post cause a client to trip while using a phone. Resulting in the phone slamming on the floor and getting cracked.
  • A toy's in the gift has deteriorating paint and stains the hands and clothes of a client
  • There's leaking on the roof of the gift shop causing a client's newly purchased product to become wet and defective

Depending on which carrier you choose to buy, worker's comp and commercial auto liability are offered as part of general liability. Still, you don't have to buy general liability insurance with numerous options if your gift shop is just starting as the most basic coverage can already protect you.

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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.

CompanyCost per monthCost per yearBest for
Zurich$34$408 Gift shop property insurance
AXA$36$432 Large gift shops
State Farm$40$480Custom 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.

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Best Gift Store Insurance Companies

When planning to get gift store insurance, you’ll need more than knowledge about how the insurance industry works. You’ll also need to make sure that you’re working with the best possible gift store insurance company. Let’s take a look at three of the best gift store insurance companies out there, and we’ll give you a rundown of their pros, cons, and pricing for a $1 million general liability coverage. 

Zurich Gift Shop Insurance

Zurich is the largest insurance company in Switzerland, and as you may have guessed by the company’s name, their HQ is in Zurich. The company was originally started in 1872, and they have been going strong for the past 150 years, offering both non-life and life insurance.

Zurich Policy Details

While Zurich doesn’t have a specific policy to cater to gift shops, they do have their Retailer Business Insurance program. This features accident insurance, liability coverage, legal protection, cyber insurance, and inventory coverage. The company also has 24/7 availability over the internet.


  • 24/7 internet availability
  • Broad range of coverage options
  • Offers property insurance for gift stores


  • No insurance policies specifically tailored for gift shops

Average cost: $34

Best for : Gift shop property insurance

Our rating : 4/5

AXA Gift Shop Insurance

AXA is an insurance company based in Paris but they do business all around the world usnig theirsatellite branches positioned in North America, the Middle East, and Africa. The company originally started in 1816 as a fire insurance carrier.

AXA Policy Details

Under their Shop Insurance plan, you can get public liability, employers’ liability, and professional indemnity coverage from AXA. They also offer a range of bonuses like contents cover with a rising limit over time and access to a 24-hour hotline for legal expenses advice.


  • Content insurance with glass replacement coverage
  • Great for online and brick and mortar gift shop


  • Contents coverage is the only insurance policy useful for gift shops

Average cost : $36

Best for : Large gift shops

Our rating : 5/5

State Farm Gift Shop Insurance

State Farm is the largest insurance provider in the United States for both auto and property insurance. The company is known for its practice of working with exclusive agents to ensure accuracy and transparency in behalf of customers.

State Farm Policy Details 

State Farm offers a variety of coverage options for retail businesses like gift shops, including liability coverage, loss of income coverage, property insurance, and employee dishonesty cover.


  • Very customizeable coverage
  • Easy to get a quote online
  • Quick to respond to claims


  • Doesn't offer gap insurance

Average cost: $40

Best for: Custom coverage

Our rating: 5/5

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