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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. 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 article to understand 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, 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.
Your gift shop allows people to access its premises. 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. The general liability insurance for gift shops has a $1 million-$2 million per occurrence and aggregate limit.
| 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 |
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 shop insurance program.
Professional liability insurance will protect your gift shop if a client files a claim because:
| 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 |
Most insurance companies offer product liability insurance as an automatic inclusion in your gift shop’s general liability policy.
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.
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| 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.
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:
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A gift shop and novelty shop 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.
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.
| 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 |
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.
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:
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.
| 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 |
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 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:
Average cost: $25 per month
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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.
Average cost: $35.83 per month
Our rating: 10/10
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.
Average cost: $39 per month
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.
Average cost: $40 per month
Do you have U.S. insurance expertise/experience? Would you like to become a voice at Insuranks, help businesses and individuals, and showcase your authority online? Write us!
Not all those who wander are lost.
Disclosure: Insuranks.com is an independent educational comparison service and an advertising-supported publisher. Some of the companies/offers that appear on the website are from our partners which we may receive compensation from. This may influence which companies/offers we write about and where and how it appears on the site. However, this does not impact our assessments. We solely highlight companies, products, and offers that can help you make smarter insurance decisions.
