It’s a solid fact that every pawn shop is faced with an unprecedented risk of theft and fraud just like jewelry stores. Thus, it's important for every pawnbroker to protect their business by purchasing the right and beneficial pawn shop insurance coverages. Read on to learn about the different types of pawnbrokers insurance coverages, when to use them, their coverage limits, and more.
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $2,000,000 | $1,000,000/$2,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 | $2,000,000 | $1,000,000/$2,000,000 |
| Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $2,000,000 | $1,000,000 | $1,000,000 |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $2,000,000 | $1,000,000 | $1,000,000 |
| Tenant’s legal liability coverage limit | $300,000/$1,000,000 | $300,000 | $100,000 | $100,000 | $1,000,000 |
| Waiver of subrogation included? | Yes | No | Included | Can be included | No |
| Hired/non-owned auto liability coverage included? | Yes | No | No | Can be included | Can be included |
| Equipment breakdown floater included? | No | Yes | Yes | Can be included | Can be included |
| Can you get a certificate of insurance online? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Deductible | $0 | $0 | $0 | $0 | $0 |
This pawn insurance protects your pawn shop business against claims of bodily injuries and property damages from a third-party. Your business is also conferred with protection against reputational harm, advertisement injury and copyright infringement lawsuits.
The coverage limit under this pawn insurance policy ranges between $1,000,000 per occurrence and $2,000,000 for all the claim notices you issue your insurance provider.
In the event, your pawn shop business operations cause third-party bodily injuries and property damages
In the event, you are served with a lawsuit by your clients accusing you of reputational harm
In the event, your competitor or any other business entity accuses you of advertising injury or copyright infringement
Product liability insurance–This add-on provides you with coverage in the event the products or items you sell in your pawn shop cause bodily injury or property damages to your clients
Cyber liability insurance–This add-on can compensate you for any financial costs you incur following a cyberattack on your pawnshop
| CoverWallet | NEXT | Thimble (Best) | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $1,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $2,000,000 |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Waiver of subrogation included? | Yes | No | Yes | Can be included | No |
| Deductible | $500 | $500 | $500 | $50/$10,000 | $500 |
Professional liability insurance policy protects you from any financial constraints you may be subjected to in the event you are sued by your client for an alleged or actual act of negligence during your professional service delivery. Upon acquiring this policy, you are conferred from being financially responsible for the following claims:
Inability to meet the set deadlines
Breach of contract
Committing an error, a mistake, or an oversight during service delivery
Providing your client with an incorrect or misleading advice
It's approximately $100,000 to $1,000,000. This coverage limit is directly determined by the types of risks you are exposed to and your chosen pawnbroker's insurance company.
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| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Building coverage limit (minimum) | $50,000 | $260,000 | $25,000/$500,000 | $25,000 | $60,000 |
| Contents coverage limit (minimum) | $50,000 | $22,000 | $25,000/$500,000 | $25,000 | $60,000 |
| Outdoor signs | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Accounts receivable | Excluded | Excluded | $5,000/10,000 | Included | Excluded |
| Money and securities | Excluded | $2,500 | $1,000 | Included | Excluded |
| Lock and keys | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Business interruption floater | Excluded | Included | Included | Included | Excluded |
| Equipment breakdown floater | Excluded | Included | Excluded | Excluded | Excluded |
| Inland marine insurance floater | Excluded | Excluded | $10,000 | Excluded | Excluded |
| Employee dishonesty floater | Excluded | $5,000 | $2,500 | Included | Excluded |
This pawn insurance policy provides you with financial aid in the event the commercial building you own, lease, or rent and the assets in it get destroyed by fire, theft, vandalism, and adverse weather conditions such as windstorms and lightning. Under this policy, the costs of repairing and replacing the damaged buildings and the contents in them are footed by your chosen pawn shop insurance provider. Important to note is that damages caused to your commercial property by floods are not covered under this policy.
It ranges between $500,000 to $2,000,000 of the insured risks. The type of construction materials your building is made of, its location and the risks it's exposed to are some of the factors pawn shop insurance companies will consider before determining how much they will pay you when you serve them with a claim notice. Also, how close you are near to a fire station is a factor that insurers use to determine your coverage limits under this policy.
Flood insurance–If your pawn shop is located in Texas or Florida then it would be best if you purchased this add-on as it provides you with coverage in the event your commercial property and the contents in it get destroyed by floods
| CoverWallet | Thimble (Best) | NEXT | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| General liability aggregate limit | $2,000,000 | $2,000,000 | $2,000,000 | $300,000 | $1,000,000/$2,000,000 |
| Commercial property coverage limit | $50,000 | $500,000 | $260,000 | $25,000 | $75,000 |
| Optional policies can be added? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds for free? | Yes | Yes | Yes | Yes | Yes |
| BOP discount? | Yes | Yes | Yes | Yes | Yes |
BOP is a common inclusion in pawn shop insurance programs that merge business interruption insurance, commercial property insurance, and general liability into one core policy. Under this insurance policy, your pawn shop business is covered against claims arising from third-party personal injury and property damage.
The BOP also provides you with financial aid in the event your commercial building and the contents in it get destroyed by the insured perils as defined in this policy. This cost-efficient policy also shields you from any financial burden that may arise following the sudden closure of your pawn shop business. Such financial burdens include the inability to pay your rent and your employees’ payroll.
Your pawnbrokers insurance provider will pay you a minimum of $10,000 to $1,000,000. The size and the level of risks your pawn shop is exposed to are some of the coverage limits determining factors.
In the event, you are unable to pay your employee's salaries and your commercial building rent due to a natural disaster
In the event, you become liable for paying bodily injuries and property damages to a third party
Crime insurance–If your pawn shop is located in an area or state where the rate of criminal acts such as theft and burglary is high, then we recommend you purchase this add-on as it will cover you from any financial consequences that are brought about by such acts of crime
| NEXT | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|
| Aggregate limit | $3,000/$10,000 | $2,500/$5,000 | $15,000/$25,000 | $5,000-$10,000 |
| Covers hired and borrowed equipment? | $3,000/$10,000 | $2,500/$5,000 | No | Yes |
| Miscellaneous equipment also covered? | $5,000/$10,000 | No | Yes | Yes |
| Offered as an endorsement to general liability insurance? | Yes | Yes | Yes | Yes |
| Deductible | $500 | $500 | $0 | $0 |
This pawn shop insurance policy protects you from incurring any costs of replacing or repairing your pawn shop’s tools and equipment in the event they get lost, stolen, or damaged.
Generally, insurers will provide you with coverage if your pawn shop equipment stops working suddenly or unexpectedly following an unintentional internal malfunction.
Such malfunctions that are covered under this policy include electrical shorts, mechanical failures, and power surges. The tools and equipment insured under this policy must be moveable and less than 5 years of age.
Your chosen insurer will pay you at least $700 to $10,000 for each of your insured tools and equipment. It’s important to note that this coverage limit is not fixed, since it’s possible to have your insurer increase it.
Business interruption coverage–This add-on ensures that you get compensated for any loss of income that arises due to the disruption of your income-generating activities due to the malfunction or breakdown of your pawn shop’s tools and equipment
Flood and water damage coverage–Under this add-on, you will be covered from footing the costs of replacing or repairing your pawn shop tools and equipment that are damaged by floods or any other water-related peril
Commercial auto insurance for pawn shops is a special insurance policy that is designed to confer you with financial aid in the event your commercial vehicle is damaged or causes damages to another vehicle or third-party property. The perils insured under the pawnbroker’s insurance include accidents, collisions, fire, theft, third-party damages and natural calamities such as adverse weather conditions.
The types of commercial vehicles covered under commercial auto insurance for pawn shops include cargo vehicles, passenger vehicles, and special vehicles (these are automobiles used for other reasons other than transporting goods or passengers).
Important to note is that you cannot be compensated for any electrical or mechanical breakdown of your commercial vehicle or from accidents caused due to drunk driving. There are 5 major components under commercial auto insurance for pawn shops. These are:
Auto liability coverage–Under this coverage, you are protected from bodily injury liability and property damage liability in case the commercial vehicle causes an accident
Collision coverage–This coverage exempts you from any financial burden you may be subjected to in the event your commercial car gets hit by another object (fence or a road barricade) or another vehicle.
Comprehensive coverage–This coverage protects you from incurring the costs of repairing your commercial vehicle in the event it is damaged by fire, acts of vandalism, theft, and adverse weather conditions
Medical payments coverage–Under this coverage, the passengers traveling (which also include your family members) in your commercial vehicle or your designated driver’s medical expenses are catered for by your insurance provider. Your medical expenses are also covered under this policy
Uninsured motorist coverage–This coverage ensures that you get compensated if you are hit by a motorist who doesn’t have an adequate or doesn’t have commercial auto insurance policy
It’s from $50,000 and above. Some of the factors insurers use to determine your coverage limit under this policy include; the make of your vehicle and its engine model, the type of plan you chose under this policy, and the type of your commercial vehicle.
Cargo coverage–Under this add-on, you are exempted from any costs you may be subjected to in the event the goods you are transporting get stolen or damaged
Hired auto coverage–If you rent or lease vehicles to conduct your pawn shop business operations, then it’s recommended that you purchase this add-on as it provides you with cover in the event that the rented or leased vehicle gets into an accident or gets damaged while under your care
Workers compensation insurance is insurance coverage specifically designed to protect your employees from any work-related injuries and sickness. Only independent contractors are exempted from purchasing this pawnbroker’s insurance. You can only be denied the workers comp insurance for pawn shops if your chosen insurer has proof of foul play.
When your employee accepts to be compensated under this coverage, they lose their reserved rights of suing you for any acts of negligence that might have caused them the work-related disease or injury. Some of the costs covered by this insurance policy include disability benefits, dismemberment benefits (when an employee loses one or more of their limbs), death benefits, ongoing medical treatment costs, legal expenses, occupational rehabilitation costs, and lost wages (these are paid partially).
There is no set coverage limit for this type of pawn insurance. The amount of payout depends on how the workers comp law of the state where you’re doing business is formulated.
Employer’s liability insurance–This add-on covers you from incurring financial losses in case an employee files a lawsuit for negligence after sustaining a work-related injury or disease
| Cost per Month | Cost per Year | Deductible | |
|---|---|---|---|
| General liability insurance | $45 | $540 | $0-$500 |
| Commercial property insurance | $60 | $720 | $1,000-$2,000 |
| Business owner's policy | $105 | $1,260 | $1,500 |
| Tools and equipment insurance | $49 | $588 | $500-$1,000 |
| Commercial auto insurance | $50 | $600 | $500-$1,000 |
| Workers compensation insurance | $87 | $1,044 | $2,500-$5,000 |
The average pawn shop insurance cost is $45 per month or $540 per year for a $1 million general liability coverage. Factors that affect the cost of premiums are claims history, business history, deductibles, policy limits, location, and revenues.
Before you begin your pawn shop insurance application process, take a look at this table that shows the cost of a $1 million general liability insurance from the best pawn shop insurance companies:
| Cost per Month | Cost per Year | Best For | |
|---|---|---|---|
| NEXT | $33 | $396 | Best overall; Fastest general liability insurance for pawn shops |
| CoverWallet | $38 | $456 | Comparing pawn insurance quotes online |
| Hartford | $41 | $492 | Pawn shops which deal with high-value inventories and assets |
| Tivly | $45 | $540 | Comparing pawn shop insurance quotes over the phone |
| Hiscox | $46 | $552 | Pawn shops located in areas with high risk liabilities |
| Thimble | $47 | $564 | Pawn shop owners who do not operate their business throughout the year |
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Here are some of the best pawnshop insurance companies. Read some of the reviews below to know their pros, cons, and average rate for a $1 million general liability insurance.
It underwrites its own policies
It sells its bundled policies at a 10% discount
You can tailor its pawn insurance policies to suit your need
You can conveniently access your certificate of insurance online after making the required payments
Couldn’t find any
NEXT is a business insurance company that specializes in the provision of affordable pawn insurance policies to small-sized pawn shop business owners. This A- AM Best rated online insurer provides its clients with commercial auto insurance, commercial property insurance, tools and equipment insurance, workers comp insurance, business owners policy, professional liability insurance, and general liability insurance.
Best for: Best overall; Fastest general liability insurance for pawn shops
Average cost: $33 per month
Our rating: 10/10
You are guaranteed of above-average customer service
Compare quotes online
HNOA coverage automatically included in general liability insurance
Not an insurance company but an insurance broker
CoverWallet is a premium online insurance broker that is owned by the Aon PLC firm. The BBB has rated this competitive pawn shop insurance broker a B. You can purchase the following pawn insurance coverages from it: general liability insurance, professional liability insurance, workers comp insurance, commercial property insurance, and commercial auto insurance policy from it at an affordable price.
Best for: Comparing pawn insurance quotes online
Average cost: $38 per month
Our rating: 10/10
It’s an experienced insurance provider
Its pawn insurance coverages are available in all the 50 states
You can conveniently use its mobile app for claim reporting
You can also gain from its financial services
Limited add-ons to base policies
For over 200 years The Hartford has dominated the insurance industry due to its top-notch customer services and its supplementary financial services. This AM Best and BBB-rated insurance company facilitates its clients with the acquisition of various pawn insurance coverage policies.
Best for: Pawn shops that deal with high-value inventories and assets
Average cost: $41 per month
Our rating: 10/10
Compare quotes over the phone
Grants coverage regardless of your risk profile
Matches you with the best pawn insurance provider
You need to call to get a quote
Tivly is a digitally managed insurance agency that provides its pawn insurance policies to clients through its 200 partnered insurance providers. You can purchase various insurance coverage from this A+ AM Best-rated insurance broker. Call now to compare quotes over the phone.
Best for: Comparing pawn shop insurance quotes over the phone
Average cost: $45 per month
Our rating: 8/10
You can purchase an hours or a day’s insurance coverage
You can get instant quotes
You can conveniently purchase its pawn insurance policies online
Up to now it doesn’t underwrite its policies
Despite being backed up by the Markel insurance company, Thimble has over the years demonstrated its ability to provide flexible, easy-to-purchase, and easy-to-claim insurance policies. Some of the pawn shop insurance coverages you can purchase from this resilient insurance company include general liability, professional liability, workers' compensation insurance, business owners' liability, tools and equipment insurance, and commercial property insurance policies.
Best for: Pawn shop owners who do not operate their business throughout the year
Average cost: $47 per month
Our rating: 8/10
Its website is convenient for use by both veteran and newbies policyholders
It has a 24/7 fully functional mobile app
You can easily purchase its discounted pawn shop policies
People living in Alaska cannot access its coverage
Hiscox is a premium insurance company that was founded in 1901. This insurance company's ability to adapt to the current business economies by providing its customers with discounted policies has made it earn an A+ rating by the AM Best.
Best for: Pawn shops located in areas with high-risk liabilities
Average cost: $46 per month
Our rating: 8/10
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
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!
Not all those who wander are lost.
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