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.
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:
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:
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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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.
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.
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.
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 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.
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.
Average cost: $34
Best for : Gift shop property insurance
Our rating : 4/5
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.
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.
Average cost : $36
Best for : Large gift shops
Our rating : 5/5
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 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.
Average cost: $40
Best for: Custom coverage
Our rating: 5/5
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Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
Wow, just like just about everyone else here...extremely disappointed with this company. I have found them to be in violation of many laws for doing business in my state(Calif) according to my investigation at the California Insurance Commision. I dropped by today at their request to furnish them with with documentation for my case. These people are as crooked as they can get away with. They aren't stupid, and they know how to throw threats around. They prey on good folks who are ignorant of their rights, and don't know what the insurance regulatory agency expects of Insurance companies in each state. I challenged them to not pay, to not extend the rental, to deny repairs. Then I let them know what my regulatory commision says they must do. More than likely my case will end up in trail. My attorney is a rock-star! A trail attorney, so bring it on! The day after we receive payment for medical and attorneys, the case will be investigated and processed by the Insurance Commisioners Office.
Meredith Baldridge Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
I wanted to reach out to let you all know I will not be securing insurance through Berkshire Hathaway Guard. This company is horrible, I have not signed any documents and I am unable to get anyone on the phone.
I never purchased the policy. The person I spoke with "Bruce" was condescending and argumentative. He kept repeating himself and talking in circles telling me what I HAVE TO DO, basically trying to bully me into purchasing commercial insurance. I wouldn't use this company if they were paying me!
Michael Swink Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
My employer had to have workers compensation by law. He obtained a policy through this Berkshire Hathaway GUARD and they failed me. I fell from a ladder and fractured my spine in 7 different places, my clavicle in 4 places, and the base of my skull. Going to my Dr visits I was prescribed medication for pain and the insurance company placed a pre-authorization hold on me picking up the medication from Walgreens. The hold lasted 5 days! My weekly benefits have never been on time, right now they are 2 checks behind and the last one was almost $200 short. This company does not care about taking care of their obligations or responsibilities, they have shown that they are only interested in collecting for Thier policies. If I could give them less than a star I would. I was seriously hurt working for a client of theirs and they are doing the absolute bare minimum while dragging their feet. I would not recommend them to anyone.
Aaron Wensel Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
Guard Insurance is terrible. They were so bad I cancelled them because them couldn't figure out why I would never get a paper copy of the bill . Verified my address with them and still intermittent billing. I cancelled them in March through my local broker. Today 6/27 I get a letter in the mail from a collections company saying I owe 87.97. This was the first myself or my broker heard of owing this money. Here is some advice for this failure of a company send me a god damn bill and I will pay. Or here's even a better customer service tip, call me and ask me why I haven't paid the bill. Instead, you don't send me any bill, then turn me into to collections. Even better I call to pay my obligations to Brown and Joseph, they transfer me around, no answer. I'm sorry for your staff because they have to tell their friends and family where they work.