Commercial Property Insurance for Gift Shops
| 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.
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
| 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.
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:
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.
