Sporting goods stores provide hobbyists and teams the equipment they need to pay basketball, tennis, or any other sports.
Running a sporting goods store comes with risks and liabilities. From customer injuries to property damage, accidents can happen unexpectedly, and the financial repercussions can be overwhelming.
That's where sporting goods store insurance comes in. Get this and you won’t have to worry even if you’re selling very expensive equipment such as golf clubs or hockey equipment. This comprehensive guide will explore the different insurance policies available for sporting goods stores. We will also discuss the coverage limits, show available add-ons, and provide estimated costs from some of the best insurance companies in the industry.
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 |
General liability insurance is a crucial policy that provides coverage for potential risks and liabilities sporting goods stores face. It safeguards your business from financial losses from third-party claims, such as bodily injury, property damage, or advertising injuries.
Slip and fall accidents–If a customer slips and falls in your store, resulting in injuries
Property damage–If a customer's property is damaged while in your store, such as a broken display or damaged personal belongings
Product liability–If a customer suffers injuries or property damage due to a defective product sold by your store
Personal injury–A customer sues for slander or libel
Typically, coverage limits range from $1 million to $2 million, although higher limits may be available based on your business needs and the insurer's offerings.
To enhance your general liability coverage, consider the following addons:
Product liability coverage–This addon specifically focuses on extending coverage for injuries or damages caused by the products you sell.
Umbrella liability insurance–An umbrella policy provides additional liability coverage beyond the limits of your general liability insurance, offering extra protection in case of a very costly lawsuit
Insurance companies underwrite general liability insurance that it also covers sporting goods stores in Amazon, Etsy, and other online platforms.
Product liability insurance is a specialized policy designed to protect sporting goods stores from potential claims and lawsuits related to their products. This sporting goods insurance provides financial protection if a customer suffers injuries or property damage due to a defective product sold by your store.
Defective equipment–If a customer sustains injuries due to a faulty sports equipment product purchased from your store
Manufacturing defects–Product liability insurance can cover the damages and legal expenses if a product has a manufacturing defect that makes it unsafe for use and harms a customer
Design defects–In cases where a product's design poses a risk or flaw that leads to injuries or property damage
Coverage limits typically range from $1 million to $5 million, but higher limits may be available for businesses with specific needs or higher-risk products.
The insurance can provide coverage for the expenses associated with product recalls. This includes costs such as notifying customers, retrieving defective products, and implementing necessary corrective actions.
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CoverWallet | NEXT (Best) | Thimble | The Hartford | Hiscox | |
---|---|---|---|---|---|
Building coverage limit (minimum) | $50,000 | $340,000 | $25,000/$500,000 | $35,000 | $25,000 |
Contents coverage limit (minimum) | $50,000 | $35,000 | $25,000/$500,000 | $35,000 | $15,000 |
Outdoor signs | Excluded | $2,500 | Excluded | Excluded | Included |
Accounts receivable | Excluded | Excluded | $5,000/$10,000 | Excluded | Included |
Money and securities | Excluded | $2,500 | $1,000 | Excluded | Included |
Lock and keys | Excluded | $2,500 | Excluded | Excluded | Included |
Business interruption floater | Excluded | Included | Included | Excluded | Included |
Equipment breakdown floater | Excluded | Included | Excluded | Excluded | Included |
Inland marine insurance floater | Excluded | Excluded | $10,000 | Excluded | Excluded |
Employee dishonesty floater | Excluded | $5,000 | $2,500 | Excluded | Excluded |
Commercial property insurance is a vital policy that covers your sporting goods store’s physical assets. This type of policy falls under sports store insurance that safeguards your business from financial losses resulting from property damage, theft, or other covered perils.
Fire damage–If your store experiences a fire that causes damage to the building, inventory, or equipment, then commercial property insurance can help
Water damage–Coverage extends to water damage resulting from incidents such as burst pipes, leaking roofs, or sprinkler system malfunctions
Natural disasters–Coverage can include lightning, rains, and snow
Coverage limits typically range from $500,000 to $5 million, depending on your business needs and the valuation of your property.
Equipment breakdown coverage–Offers protection for the repair or replacement costs of equipment, such as HVAC systems, refrigeration units, or specialized machinery, in case of mechanical or electrical breakdown
Flood insurance–If your store is in a flood-prone area, adding flood insurance can cover damages caused by flooding, typically excluded from standard commercial property insurance
It depends on the specific terms of your policy. Some commercial property insurance policies cover inventory spoilage caused by power outages from covered perils such as equipment breakdowns or utility failures.
CoverWallet | NEXT (Best) | Thimble | The Hartford | Hiscox | |
---|---|---|---|---|---|
General liability aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $300,000/$2,000,000 |
Commercial property coverage limit | $50,000 | $320,000 | $25,000/$500,000 | $35,000 | $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 |
A business owner's policy (BOP) is a comprehensive insurance package specifically designed for small and medium-sized businesses, including sporting goods stores. It combines multiple coverages into one policy, providing convenience and cost savings.
Property damage or loss resulting from covered perils such as fire, theft, vandalism, or natural disasters
A covered event temporarily forces your sporting goods store to close
Injuries or property damage caused by your products
Generally, coverage limits can range from $1 million to $5 million, depending on your specific needs and the policy options available.
Cyber liability insurance–Adding this coverage can protect your business from financial losses due to data breaches, cyberattacks, or other technology-related risks
Employment practices liability insurance (EPLI)–EPLI provides coverage for claims related to employment practices, such as wrongful termination, discrimination, or harassment
Business interruption coverage within a business owner's policy can cover loss of income due to government-mandated closures, such as during a state of emergency or public health order.
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 |
Tools and equipment insurance is a policy that provides coverage for the valuable tools, equipment, and machinery used in sporting goods stores. This insurance protects your business from financial losses from damage, theft, or other covered perils related to your tools and equipment. Sporting goods store owners should work closely with providers experienced in sporting goods insurance to assess their equipment needs and obtain appropriate coverage that safeguards their tools and equipment from potential risks.
Coverage extends to damage caused by covered perils such as fire, water damage, vandalism, or accidental breakage
This insurance can also cover the repair or replacement costs of equipment or machinery that breaks down due to mechanical or electrical failures
Coverage may include protection for your tools and equipment while in transit, such as during transportation to trade shows, events, or off-site locations
Typically, coverage limits can range from $10,000 to $500,000 or more depending on the valuation of your store’s tools and equipment.
Inland marine insurance–Provides coverage for your tools and equipment when transported or temporarily stored at locations away from your primary business premises.
Rented equipment coverage–If you frequently rent additional tools or equipment for specific projects or events, adding this coverage can protect you from financial losses if the rented items are damaged or stolen.
Tools and equipment insurance can cover damage caused by user error or accidental drops as long as the damage occurs within the terms and conditions of the policy.
Commercial auto insurance is an insurance policy that provides coverage for vehicles used in the operations of sporting goods stores. It protects against financial losses from accidents, damage, or other incidents involving the covered vehicles used for business purposes.
Coverage limits can range from $500,000 to $1 million, depending on your business needs and the policy options available.
Auto accidents–Coverage includes bodily injury and property damage liability for accidents involving your vehicles, protecting you from potential legal and medical expenses
Vehicle damage–This insurance covers repair costs or replacement value for vehicles damaged in accidents, regardless of fault
Non-collision damage–It includes coverage for damage caused by non-collision incidents such as fire, severe weather, falling objects, or collisions with animals
Hired and non-owned auto coverage–Provides coverage for vehicles not owned by your business but used for business purposes.
Roadside assistance–You can use this add-on to cover the cost of jumpstarts, tire delivery, gas delivery, and other related services needed when the commercial vehicle stalls or breaks down on the road
Commercial auto insurance generally covers vehicles that are primarily used for business purposes.
Excess liability insurance, also known as umbrella insurance, is an additional layer of liability coverage that goes beyond the limits of your primary sports store insurance policies. It provides extra protection against catastrophic events or large lawsuits that exceed the limits of your underlying insurance coverage.
Typically, excess liability coverage starts at $1 million and can go up to $10 million or more.
Workers' compensation insurance is a crucial inclusion in sports store insurance. It is a specific type of insurance that covers employees who suffer work-related injuries or illnesses. In sporting goods stores, where employees may engage in physically demanding tasks such as lifting heavy equipment or organizing sports equipment, the risk of accidents and injuries can be higher.
Strains and sprains–Employees in a sporting goods store may be involved in physical activities like lifting heavy equipment or moving merchandise, which can lead to strains and sprains
Repetitive motion injuries–Employees who perform repetitive tasks like scanning items at the cash register or stocking shelves may develop repetitive motion injuries like carpal tunnel syndrome
The coverage limits and requirements for workers' compensation insurance vary depending on the state where your sporting goods store operates. Each state has its own laws and regulations regarding workers' compensation.
Employer's liability insurance–Provides coverage for legal costs if an employee files a lawsuit against your sporting goods store for alleged negligence or unsafe working conditions resulting in their injury or illness
Occupational accident insurance–Can supplement workers' compensation coverage by providing additional benefits and coverage options for work-related accidents or injuries
Cost per Month | Cost per Year | Deductible | |
---|---|---|---|
General Liability Insurance | $37 | $444 | $0-$500 |
Excess liability insurance | $40 | $480 | $500-$1,000 |
Commercial property insurance | $89 | $1,068 | $1,000-$2,000 |
Business owner’s policy | $126 | $1,512 | $1,500 |
Tools and equipment insurance | $42 | $504 | $500-$1,000 |
Commercial auto insurance | $52 | $624 | $500-$1,000 |
Workers compensation insurance | $129 | $1,548 | $2,000-$5,000 |
The average sporting goods store insurance cost is $37 per month or $444 per year for a $1 million general liability policy. Factors that affect the cost of premiums are claims history, business history, policy limits, deductibles, location, annual revenues, and number of employees. Here’s a table showing the cost of a $1 million general liability insurance from the best sporting goods store insurance companies:
Cost per Month | Cost per Year | Best for | |
---|---|---|---|
NEXT | $23 | $276 | Best overall; Fastest general liability insurance for sporting goods stores |
CoverWallet | $26 | $312 | Comparing sporting goods store insurance quotes online |
The Hartford | $28 | $336 | Workers compensation insurance for sporting goods stores |
Tivly | $31 | $37 | Comparing sporting goods store insurance quotes over the phone |
Thimble | $32 | $384 | On-demand coverage for sporting goods stores |
Hiscox | $34 | $408 | Sporting goods store insurance with worldwide coverage |
Get all the best quotes from leading providers in a click of a button!
Finding the right insurance company for your sporting goods store is crucial to ensure comprehensive coverage and reliable protection. Here are some of the companies you might want to consider working with. Read some of the reviews below to know their pros, cons, and average rate for a $1 million general liability insurance:
Best overall
Issues an online proof of insurance instantly
Fastest general liability insurance for sporting goods stores
Great customer service and reputation
Excellent rates
Outstanding value for money
Get a 10% discount if you buy two or more policies
Couldn’t find any
NEXT is a leading insurance company that helps provide coverage for businesses involved in adventurous activities. It allows customers to get covered online with the help of an agent. Moreover, NEXT has an online platform where customers can easily get their certificate of insurance and send it to someone as a text message, email, or social media post.
Best for: Best overall; Fastest general liability insurance for sporting goods stores
Average cost: $23 per month
Our rating: 10/10
CoverWallet's online platform offers a seamless and user-friendly experience, making it easy for businesses to compare quotes and select the right insurance coverage
They provide personalized policy recommendations based on the unique requirements of each business, ensuring that they receive the appropriate coverage
You can compare quotes online
Not an insurance company but an insurance broker
CoverWallet is an online insurance brokerage firm that provides adjusted insurance solutions to businesses of all sizes. It grants coverage through an online quote comparison platform which allows customers to see which of CoverWallet’s provides the best coverage at the right price. Upon getting covered, custCoverWalletomers can access this company’s online platform which allows for easy policy management.
Best for: Comparing sporting goods store insurance quotes online
Average cost: $26 per month
Our rating: 10/10
Has a strong reputation for delivering excellent customer service and efficient claims handling, providing peace of mind to small business owners
They offer a comprehensive suite of insurance products designed to address small businesses' unique risks
Renowned company for workers compensation insurance
Some customers have reported slightly higher premiums than other insurance providers.
The Hartford is an insurance company that provides coverage for small businesses. This company is famous for its workers compensation policies. The Hartford can create specialized policies for customers with high-risk profiles.
Best for: Workers compensation insurance for sporting goods stores
Average cost: $28 per month
Our rating: 10/10
A partner of reputable insurance companies
Compare quotes over the phone
Grants coverage regardless of your risk profile
You need to call to get a quote
Tivly is a technology-driven insurance company that provides tailored coverage options for small businesses. This company takes you to a carrier that best fits your risk profile. Policies you can get are general liability, workers compensation, and more. Call now to compare quotes over the phone.
Best for: Comparing sporting goods store insurance quotes over the phone
Average cost: $31 per month
Our rating: 8/10
Thimble's on-demand coverage options allow businesses to purchase insurance when needed, providing flexibility and cost-effectiveness
Buy general liability insurance as a long-term or short-term policy
Numerous add-ons to general liability insurance
You can’t reach customer service by calling
Thimble is an insurance company that provides on-demand coverage for small businesses. It offers general liability as a long-term and short-term coverage. Numerous add-ons are available to Thimble’s long-term general liability policy, such as professional liability and HNOA coverage. The short-term general liability coverage doesn’t have add-ons. Nonetheless, you can customize limits.
Best for: On-demand coverage for sporting goods stores
Average cost: $32 per month
Our rating: 8/10
Offers a comprehensive suite of insurance products, making them a one-stop solution for businesses seeking different types of coverage
They provide coverage for businesses in multiple countries, making them an ideal choice for companies with international operations
There have been customer reports regarding processing claims and factory customer service
Hiscox is an international insurance company that covers businesses of all sizes. This company offers a 14-day money-back guarantee on all of its policies. Worldwide coverage is included in its general liability insurance. Last but not least, going back to all of its policies, Hiscox allows you to make them more comprehensive through numerous upgrades.
Best for: Sporting goods store insurance with worldwide coverage
Average cost: $34 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!