Pawn Shop Insurance: Cost & Quotes From $25/mo

Table of contents

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. 

General Liability Insurance for Pawn Shops

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.


Coverage Limits for General Liability Insurance for Pawn Shops

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.


Situations in Which You Can Use the General Liability Insurance for Pawn Shops

  • 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

Add-Ons for General Liability Insurance for Pawn Shops

  • 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

Professional Liability Insurance for Pawn Shops

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

Coverage Limits for Professional Liability Insurance for Pawn Shops

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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Commercial Property Insurance for Pawn Shops

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.


Coverage Limits for Commercial Property Insurance for Pawn Shops

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.


Add-Ons for Commercial Property Insurance for Pawn Shops

  • 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

Business Owner’s Policy for Pawn Shops

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.


Coverage Limits for Business Owner’s Policy for Pawn Shops

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.


Incidents When You Can Use This Pawn Shop Insurance

  • 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

Add-Ons for Business Owner’s Policy for Pawn Shops

  • 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

Tools and Equipment Insurance for Pawn Shops

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.


Coverage Limits for Tools and Equipment Insurance for Pawn Shops

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.


Add-Ons for Tools and Equipment Insurance for Pawn Shops

  • 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 Shop

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

Coverage Limits for Commercial Auto Insurance for Pawn Shops

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.


Add-Ons for Commercial Auto Insurance for Pawn Shops

  • 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 for Pawn Shops

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).


Coverage Limits for Workers Comp Insurance for Pawn Shops

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.


Add-Ons for Workers Comp Insurance for Pawn Shops

  • 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 

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Pawn Shop Insurance Cost

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

Compare Cheap Pawn Shop Insurance Quotes Online

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Best Pawn Shop Insurance Companies

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. 


NEXT Pawn Shop Insurance

Pros

  • 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

Cons

  • 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


CoverWallet Pawn Shop Insurance

Pros

  • You are guaranteed of above-average customer service

  • Compare quotes online 

  •  HNOA coverage automatically included in general liability insurance

Cons

  • 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


The Hartford Pawn Shop Insurance

Pros

  • 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

Cons

  • 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


Tivly Pawn Shop Insurance

Pros

  • Compare quotes over the phone

  • Grants coverage regardless of your risk profile 

  • Matches you with the best pawn insurance provider

Cons

  • 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


Thimble Pawn Shop Insurance

Pros

  • 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

Cons

  • 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


Hiscox Pawn Shop Insurance

Pros

  • 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

Cons

  • 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

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