Sporting goods stores provide hobbyists and teams the equipment they need to pay basketball, tennis, or any other sports.Â
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.Â
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.Â
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.Â
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.Â
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.Â
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.
