Like other businesses, hardware stores face various risks. An employee can sustain repetitive strain injuries due to the continuous lifting of heavy objects. The forklifts and other equipment used for stockpiling supplies can get damaged. It’s not even impossible for a hardware store’s warehouse to get burned or destroyed because of an accident or a natural disaster.
Your hardware store is a retail business and it can be insured through a retail insurance package. Nonetheless, hardware store insurance provides the best protection. This consists of general liability, commercial property, and other business insurance policies underwritten to cover the exposures unique to you.
Hazards and risks are present in any business. For hardware stores, these are the most common ones:
Claims for bodily injuries and property damage
Accusations of selling items with errors in design, incorrect labeling, or defects
Business property fire and other devastating occurrences
Theft of hardware supplies that employees or third parties commit
General liability insurance and product liability insurance are the most common types of hardware store liability insurance. The sections below discuss how each functions.
|Per occurrence limit||$1,000,000||$1,000,000||$1,000,000/$2,000,000||$300,000|
|Products and completed operations aggregate limit||$2,000,000||$1,000,000||$1,000,000||$1,000,000|
|Advertising injury coverage aggregate limit||$1,000,000||$1,000,000||$1,000,000||$1,000,000|
|Tenant’s legal liability coverage limit||$100,000||$100,000||$5,000||$100,000|
|Waiver of subrogation included?||Yes||No||Included||Can be included|
|Hired/non-owned auto liability coverage included?||Yes||No||Excluded||Can be included|
|Food-borne illness endorsement included?||No||Yes||Yes||Can be included|
|Can you get a certificate of insurance online?||Yes||Yes||Yes||Yes|
|Name additional insureds?||Yes||Yes||Yes||Yes|
General liability insurance is the core policy of almost all hardware shop insurance packages, safeguarding you from third-party claims for bodily injuries, property damage, copyright infringement, slander, or libel. By having this insurance, you can cover these costs without any problems:
Emergency care and medical treatment of the claimant
Reimbursement for the damaged property of the claimant
Use the table above to see which insurance company offers the best general liability insurance for hardware stores.
Your hardware store can use general liability insurance to cover the cost of claims filed after any of these situations happen:
A customer slipped and fell on the wet floor while walking around your hardware store
An employee is placing supplies on display racks, and a box falls on a customer passing by
A customer sustains an injury while testing a drill, cutter, or any other power tools sold at your hardware store
Your hardware store uploaded marketing material on social media and got sued by another company for copyright infringement
An employee is hauling construction supplies for a customer by foot. Out of his haste, another customer was shoved into a corner by accident and got injured
Your hardware store can opt to get a general liability policy with a $300,000-$500,000 per occurrence limit and a $1 million-$2 million aggregate limit. Nonetheless, what’s recommended is a general liability policy with a $1 million-$2 million per occurrence and aggregate limit.
Yes. General liability insurance comes with an optional coverage that exclusively covers property damage claims filed by landlords. This is called the rented premises liability coverage inclusion. Rented premises liability coverage grants a $100,000-$200,000 coverage you can use to reimburse the landlord if his property is damaged by a fire due to your negligence.
Your hardware store insurance can be complemented by adding more policies that cover different things or add more coverage. Some examples include:
–Protects your business from the costs you may incur for selling hardware items that damage a customer or their property.
Cyber liability–Defends your business from costs related to cyber attacks, data breaches, and crisis reputation management
–Adds protection to your tools and equipment in the event that they get damaged or stolen
Your hardware store primarily generates revenues by distributing goods to customers. And so, aside from accidents, it can also be held liable for the injuries or property damage that’s caused by sold equipment, materials, and other products.
A product liability policy is the insurance that will cover costs if a customer files a claim because your hardware store sold a product with:
Inadequate instructions/safety warnings
The selling of knockoffs counts as fraud. Fraud is usually excluded in the product liability insurance for hardware stores. And so, the answer is no.
Product liability insurance doesn’t cover missed refunds. It’s because this insurance only covers liabilities for damages that sold products inflict on customers.
Product liability insurance has a standard coverage limit of $1 million per occurrence and $2 million in aggregate.
Yes. Although some companies offer product liability as a standalone policy, others include it as part of your general liability insurance. It provides protection against design defects, improper warnings, and manufacturing defects.
Yes. Since your hardware store business deals with the sale of consumer goods to third parties, you will want this insurance protection. The US Chamber of Commerce released a guide that states they recommend any business that deals with consumer goods should have this insurance protection in place.
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|Building coverage limit (minimum)||$50,000||$270,000||$25,000/$500,000||$25,000|
|Contents coverage limit (minimum)||$50,000||$35,000||$25,000/$500,000||$25,000|
|Money and securities||Excluded||$2,500||$1,000||Included|
|Lock and keys||Excluded||$2,500||Excluded||Included|
|Business interruption floater||Excluded||Included||Included||Included|
|Equipment breakdown floater||Excluded||Included||Excluded||Included|
|Inland marine insurance floater||Excluded||Excluded||$10,000||Excluded|
|Employee dishonesty floater||Excluded||$5,000||$2,500||Excluded|
A hardware store isn’t a business that you can start without a huge investment. And speaking of investment, the majority of your financial resources will go to the building and the inventory.
Purchase commercial property insurance and ensure that you can continue operating even if something happens to your hardware store’s building and inventory.
Use the table above to see which insurance company offers the best commercial property insurance for hardware stores.
Commercial property insurance ascertains the survival of your hardware store by reimbursing the estimated value of the building and inventory that got damaged, destroyed, or lost due to the following:
Business interruption–This policy can help you make rent payments and loan payments and supplement lost income due to a covered physical damage event
The median coverage limit for commercial property insurance is $60,000. Your coverage limit will change based on the value of the items you are insuring.
Yes. Carriers allow you to schedule expensive business equipment, such as forklifts, point-of-sale systems, trolleys, and power generators, in the terms of commercial property insurance. By doing so, you can recover the value of these items in case they get damaged or destroyed while within your hardware store’s area due to fire, theft, vandalism, and other covered perils.
Paid supplies are already the construction company’s property that’s under your custody. The thing is, commercial property insurance comes with a care, custody, and control exclusion. And so, the answer is most likely a no.
No. Commercial property insurance doesn’t cover inventory that’s not within the premises of your hardware store. But still, note that the shipping company has cargo insurance and they can certainly reimburse some of your financial losses.
No, not all businesses are required to carry commercial property insurance. However, if you want to rent or lease the property where your hardware store is located, your landlord will often require that you can cover any damages to it. One of the best ways to do this is through a commercial property policy.
It can be. Accounts receivable insurance is an add-on for commercial property insurance that can cover your financial records. It helps you cover the costs of record recovery, loan payments, and collection costs.
|General liability aggregate limit||$2,000,000||$1,000,000/$2,000,000||$300,000/$2,000,000||$1,000,000/$2,000,000|
|Commercial property coverage limit||$50,000||$270,000||$25,000||$25,000/$500,000|
|Optional policies can be added?||Yes||Yes||Yes||Yes|
|Name additional insureds for free?||Yes||Yes||Yes||Yes|
A business owner's policy (BOP) is designed to offer comprehensive coverage for small local hardware shops, including those with multiple locations. A BOP is a type of small business insurance that combines various policies into one package. Insurers normally underwrite this type of business insurance to SMBs that operate in lower-risk industries, such as retail, wherein your business exists.
Think of a BOP as an all-in-one protection against common business risks. This policy protects against lawsuits and commercial property damage. The coverages included in a BOP vary from one provider to another, but most BOPs include the following policies:
Property damage coverage–A business owner’s policy can be used like a commercial property policy. This will reimburse financial losses and help you get back on track in case a covered peril happens
Liability coverage–You'll typically find general liability coverage included in a BOP to ensure you're protected from third-party bodily injury, property damage, as well as personal and advertising injury
Business interruption coverage–A major catastrophe may occur and force you to close your hardware store for an extended time. This insurance policy may reimburse your lost income and other extra expenses, such as employee wages
Equipment breakdown coverage–Covers your business equipment when it breaks down due to things like mechanical failure, electronic damage, and power surges
Employment practices liability–Protects your business against employee claims that allege discrimination, wrongful termination, harassment, and other issues.
Business owners policy will typically have a general liability limit between $1 and $2 million and a commercial property limit between $20,000 and $60,000. Higher limits are possible based on what your insurer can offer.
Your hardware business owner’s policy would exclude commercial auto coverage, workers' compensation, and professional liability insurance. You would need to purchase those policies to get the protection that they offer. These policies are important for getting adequate coverage for your vehicles, employees, and mistakes on the job.
Yes, a business owner’s policy can save you money compared to buying its combination of policies like general liability coverage separately. A BOP combines coverage and typically costs less than if you bought the same policies separately.
|Covers hired and borrowed equipment?||$3,000/$10,000||$2,500/$5,000||No|
|Miscellaneous equipment also covered?||$5,000/$10,000||No||Yes|
|Offered as an endorsement to general liability insurance?||Yes||Yes||Yes|
Tools and equipment insurance can cover your hardware store’s precious equipment, not only from damage or destruction but also breakdown. Purchase this and you can insure the estimated overall value of forklifts, trolleys, ladders, power generators, and other precious items. Some insurance companies also grant coverage up to the limits provided. Use the table above to see which insurance company offers the best tools and equipment insurance for hardware stores.
A typical coverage limit for your hardware store tools and equipment insurance will range between $5,000 and $10,000.
Yes, tools and equipment insurance is offered as an add-on to general liability insurance. It is one of the most common add-ons since it offers a simple way to get your business properly covered.
Your hardware store’s insurance policy deductible will vary. Some policies have no deductibles, while others will be around $500.
Accidents are bound to happen, and the chances of an employee suffering an injury are pretty high. For example, an employee can fall from a height while putting stocks on the racks. He or she might also stumble while helping a customer take materials to the car.
Workers' compensation insurance covers work-related injuries and illnesses. It provides the funds to pay for the following:
Medical costs (including surgery, prescription drugs, and rehabilitative care)
Lost wages because of time lost out of work
Rehabilitation and retraining
Death benefits and allowance to dependents, in case of death
Some insurance companies allow you to add an employer’s liability coverage to workers' compensation insurance. By adding this, workers' compensation insurance can cover claims for negligence or failure to grant workers comp benefits after an employee sustained a work-related injury or disease.
Typically the policy will take into account the employee's full weekly wage. This total will be averaged over a period of time. Then a percentage of your weekly wage is taken to determine the final amount for your weekly payment. Typically employees will receive 66% of their weekly wage for lost income. That number will change depending on where your policy is.
While workers comp covers a wide range of events, even when the worker is at fault, there are some cases where coverage won’t apply. Some examples include:
Injuries from a brawl that the employee initiated
An injury due to an employee's own intoxication
Emotional injuries with no physical component
Insurance companies will offer a cyber liability policy if your hardware business doesn’t only sell from a brick-and-mortar store but also through its own online shop.
Your online shop can get breached. As a result, the credit card numbers, emails, passwords, and cellphone numbers of clients can get exposed. This might result in fraudulent transactions, spam calls, phishing emails, etc.
Cyber liability insurance will cover legal defense costs if affected third parties hold you liable. Moreover, this insurance can also take care of the expenses for:
Credit and fraud monitoring
Recovery of loss data
Professional services for containing the breach
Commercial auto insurance adds financial protection to your vehicles when using them for business purposes. Some situations to use this insurance include:
One of your business vehicles gets into an accident while transporting some tools for your store
While your business vehicle is parked at work, it gets vandalized by a criminal and needs to be repaired
Commercial auto insurance typically will offer certain coverages by default.
|Protects your vehicles from damage sustained from getting into an accident during work-related activities||Covers many other forms of damage besides accident collisions for your vehicle||Helps you pay for costs that you might become liable for because of your business vehicle|
Medical Payments–Helps you pay for any medical expenses sustained by you or any passengers during a car accident. It provides coverage even if your vehicle is the one at fault
Hired or non-owned auto liability–Covers vehicles that your business technically doesn’t own, like employee vehicles and leased vehicles
Gap coverage–If your financed vehicle is stolen or totaled, it helps you pay if your car is worth less than you still owe
The coverage limits for your hardware shop insurance for commercial auto will range between $100,000 and $1 million. Higher limits are available based on the policy you select.
In some ways, yes. Commercial auto insurance can cover a wider range of situations that aren’t covered by personal auto insurance. Also, a personal auto policy covers only one person driving the car, but a commercial policy covers the entire business.
Yes, because commercial auto insurance has higher liability limits than personal auto insurance, it will typically cost more than a personal auto insurance policy. Commercial auto insurance also covers more things and has to factor in the risk of your industry.
Excess liability insurance is a policy that boosts an already existing policy with higher liability limits. Some examples of this insurance in use includes:
Your commercial auto policy only has $500,000 in liability coverage so you use an excess liability policy to cover the remaining amount you owe.
Your general liability policy ran out of coverage, but the policy term still is not up. You can supplement the coverage with excess liability
Excess liability insurance will only cover one of your hardware store policies at a time. If you want to increase the coverage limit of multiple policies, you will want to get an umbrella insurance policy. This policy will increase the limits of multiple policies at once.
Here are additional policies you can include in your hardware store insurance package, depending on the activities of your business:
Pollution liability insurance-Most small hardware stores don't stock fertilizers or chemicals that pose environmental concerns, but if you manage a wholesale hardware store that supplies environmentally hazardous products, you may want to invest in pollution liability insurance
Employment practices liability insurance-This insurance policy protects your hardware shop from employment-related claims, covering litigation costs in case an employee sues your business for illicit business practices, such as wrongful termination, discrimination, or sexual harassment
Employee dishonesty insurance-Employee dishonesty insurance will recover the financial losses after you’ve discovered a dishonest act of an employee. Dishonest acts covered under the terms of this insurance are theft, social engineering, embezzlement, forgery, misrepresentation, etc.
Inland marine insurance-Inland marine insurance will reimburse your losses if portable business property gets damaged or lost during the trip due to negligence, theft, fire, upset, vehicular accident, etc.
|Cost per Month||Cost per Year||Deductible|
|General liability insurance||$46||$552||$0-$500|
|Pollution liability insurance||$50||$600||$1,000|
|Cyber liability insurance||$60||$720||$1,000|
|Commercial property insurance||$70||$840||$1,000-$2,500|
|Business owner’s policy||$80||$960||$500-$1,000|
|Inland marine insurance||$59.41||$712.92||$500-$1,000|
|Commercial auto insurance||$100||$1,200||$500-$1,000|
|Workers compensation insurance||$126||$1,512||$2,000-$5,000|
|Employment practices liability insurance||$48||$576||$1,000-$2,500|
The average hardware store insurance cost is $46 per month or $552 per year for a $1 million general liability policy. Actual rates of customers vary based on different factors such as:
Number of employees
You can save money on business insurance by buying a BOP. Insurance carriers often sell the policy at a cheaper cost than purchasing each insurance policy separately. In connection, here’s another table showing the rates of the best companies for a $1 million general liability insurance:
|Cost per Month||Cost per Year||Best for|
|NEXT||$30||$360||Best overall; Fastest general liability insurance for hardware stores|
|The Hartford||$33||$396||Workers comp insurance for hardware stores|
|CoverWallet||$35||$420||Comparing hardware store insurance quotes online|
|Tivly||$35.41||$424.92||Comparing hardware store insurance quotes over the phone|
|Thimble||$40||$480||On-demand coverage for hardware stores and short-term general liability insurance|
|Hiscox||$41||$492||Hardware store insurance with automatic renewal|
|AmTrust||$49||$588||Small hardware stores|
Get all the best quotes from leading providers in a click of a button!
Be careful who you choose as your insurance provider. Your goal is to find a carrier with extensive knowledge of the hardware industry and can customize your insurance policy to meet your unique coverage needs. These are the best hardware store insurance companies. Read some of the reviews below to know their pros, cons, and rate for a $1 million general liability policy.
Issues an online proof of insurance instantly
Fastest general liability insurance hardware stores
Great customer service and reputation
Outstanding value for money
Get a 10% discount if you buy two or more policies
Couldn’t find any
NEXT is an insurer committed to helping small businesses find affordable and tailored business insurance that covers the unique needs of their industry. The company sells insurance purely online, and it's touted as one of the best providers if you want to access business insurance and manage your policies online quickly.
The company sells a wide range of hardware store insurance policies, including general liability, commercial property insurance, workers' compensation, professional liability coverage, and commercial auto insurance. Like most companies, NEXT provides BOPs that include general liability and commercial property coverages. In fact, you can get up to a 10% discount by purchasing a BOP.
The company allows you to choose between three plans: basic, premiere, and deluxe. Each package features any or all of the policies we mentioned above. The policy limits increase or decrease depending on which you choose. Deluxe is the most popular among businesses.
You can quickly obtain insurance quotes online, purchase business coverage, and even manage your policy over the internet. Additionally, customers can access live insurance certificates online and even share them with other parties for free.
The claims process also occurs online, and an advantage of partnering with NEXT is that the company is independently rated by AM Best for financial strength, despite being founded in 2016. That means it can handle customers' claims independently, unlike other providers. The only downside is that its 100% online approach may not be favorable for traditional customers who prefer paper-based claims reporting.
Best for: Best overall; Fastest general liability insurance for hardware stores
Average cost: $30 per month
Committed to sustainable long-term business strategy, making them reliable
Serves over one million small businesses
Limited add-ons to general liability insurance
The Hartford is an insurance veteran who boasts over 200 years in the industry. They have experience with the risks that retail businesses face and offer a host of policies to help you balance this risk. The company helps you with crisis management, general liability, and cyber liability coverage. The Hartford has an A- rating with AM Best.
Best for: Workers comp insurance for hardware stores
Average cost: $33 per month
Our rating: 10/10
Compare hardware store insurance quotes online
Easy online policy management
Compare numerous quotes with one click of a button
General liability insurance comes with hired/non-owned auto liability coverage
Not an insurance company but an insurance broker
CoverWallet is an insurance broker. It insures your hardware store by curating the quotes of its partners, such as Chubb and Liberty Mutual.
What you’ll like about CoverWallet is that the quotes you get can be compared easily from each other. That said, you can quickly gauge which company offers the most comprehensive limits, has the most reasonable pricing, or has the most inclusive coverage option.
Examples of policies included in the majority of CoverWallet’s hardware store insurance quotes are general liability, commercial auto, workers compensation, business owner’s policy, and inland marine insurance.
Best for: Comparing hardware store insurance quotes online
Average cost: $35 per month
Our rating: 10/10
Compare hardware store insurance quotes over the phone
A partner of many reputable insurance companies
Responsive customer service
Grants coverage even if you have a steep risk profile
You need to call to get a quote
Tivly doesn’t have a hardware store insurance package. But if you’re set on working with this company, then you can go for its retail insurance package that offers general liability, commercial property, commercial auto, equipment breakdown, and workers compensation insurance. To get quotes and compare, you need to call a Tivly representative.
Best for: Comparing hardware store insurance quotes over the phone
Average cost: $35.41 per month
Our rating: 10/10
Quickly issues an estimate of your rates
Inland marine insurance automatically included in commercial property insurance
Business owner’s policy can be added with cyber liability coverage
Sells a short-term general liability policy
You can’t reach customer service by calling
Thimble’s hardware store insurance offers a business owner’s policy and workers compensation insurance. This company’s BOP consists of a $1 million-$2 million general liability coverage and $25,000-$500,000 commercial property coverage with numerous add-ons automatically included. Note that you can’t apply for a BOP if you’re leasing the brick and mortar store of your hardware business.
Another thing, in case you need short-term coverage, Thimble offers a $1 million-$2 million general liability policy that lasts for hours, days, weeks, or months. Moreover, you might find this company’s events insurance package enticing.
Best for: On-demand coverage for hardware stores and short-term general liability insurance
Average cost: $40 per month
Our rating: 9/10
Worldwide liability coverage
Automatic policy renewal
Quickly modify the limits and upgrades to your hardware store insurance package
Sells the short-term general liability insurance of Thimble
Doesn’t sell general liability and commercial property insurance as stand-alone policies online
Hiscox’s hardware store insurance package offers a business owner’s policy and cyber liability insurance. This company’s BOP features a general liability coverage with a $300,000 per occurrence limit and a $300,000-$2 million aggregate limit. The commercial property coverage, on the other hand, has a $25,000 minimum limit. Finally, this company’s stand-alone cyber liability insurance comes with a terrorism coverage. Hiscox doesn’t state how much the limits are.
Best for: Hardware store insurance with automatic renewal
Average cost: $41 per month
Our rating: 10/10
24/7 claims reporting and online chat services
Large network of insurance agents
10% discount on BOP available for workers' compensation customers
Online quotes available
The company's AM Best financial rating lowered from A+ to A-
AmTrust is a large insurance provider that partners with insurance brokers that can help you compare quotes from various providers to ensure you get the proper insurance for your business. Besides, the company provides a Commercial Package Policy (CPP) to selected agents, which you can leverage if you operate a large hardware store with multiple locations. A CPP includes all BOP policies, as well as machinery insurance, cybersecurity liability, inland marine insurance, and employment practices liability.
The company also provides a 10% discount to customers who purchase workers' compensation. Finally, it's worth noting that AmTrust had an A+ AM Best rating for financial stability, but it was downgraded to A- (Excellent). Nonetheless, AmTrust is still financially stable and quickly pays out the claims of its policyholders.
Best for: Small hardware stores
Average cost: $49 per month
Our rating: 8/10
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
It really can't get any better than this... wow