There are now over 25,000 resale and thrift shops in the US. These are run by startup entrepreneurs. It’s also possible for charities to own thrift shops to fund their initiatives.
Thrift stores are becoming increasingly popular among American consumers. After all, products found in gift shops and other retail businesses are in the inventory of thrift stores at lesser prices. Having insurance is essential when starting a thrift store. Let’s discuss the different policies included in thrift store insurance, how they function, their add-ons, and policy limits.
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $300,000/$1,000,000 | $1,000,000/$2,000,000 |
| Aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $300,000/$2,000,000 | $1,000,000/$2,000,000 |
| Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $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 | $1,000,000 |
| Tenant’s legal liability coverage limit | $100,000 | $100,000 | $5,000 | $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 | Excluded | 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 |
A thrift store insurance policy with general liability coverage will protect against a third-party claim for injury or property damage from your business operations. Examples of coverage include:
A member of the public walks into your thrift store and falls while in the fitting room, getting hurt and requiring medical treatment
While shopping, a customer's personal property is damaged due to falling merchandise
Hired and non-owned auto–Helps protect your thrift store employee’s vehicles when they are being used for business-related purposes
Tools and equipment coverage–Provides financial protection for your thrift shop’s equipment and tools when they get damaged or stolen
Your thrift shop's general liability coverage will offer a $1 million to $2 million per occurrence and aggregate limit.Â
Yes, general liability insurance is a must-have policy, even for small businesses. Just because you are a smaller business doesn’t mean liability claims will cut you any slack. You will want this policy to maintain adequate protection.
Product liability insurance covers your business when it sells a faulty product that causes injury, property damage, or other harm to your customers. Example situations where this thrift shop insurance can help include:
An item at your thrift shop breaks and cuts a customer's legs
One item you sell has unclear instructions. The customer sustains injuries while using it
Product recall coverage–This helps you recover costs that you might need to make on recalling a product that you sell to customers. These costs can include things like notifying your customers and replacing defective items
Excess liability–Extends the coverage limits of your original policy when they run out, or you need supplemental coverage to handle a catastrophic claim
A standard product liability insurance policy will offer $1 million per occurrence and $2 million in aggregate. Higher limits are available depending on the policy and the insurer.
There are three main categories of product defects that might contribute to a lawsuit against your thrift store.
Design defects–Defects that are inherent in the design of an item that renders them unsafe to use by customers and the general public
Manufacturing defects–Product defects that occur in the assembly stage of the production process
Marketing defects–Flaws present when the item is displayed in the store like market claims, not properly labeled, and non-adequate safety warnings
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| CoverWallet | NEXT (Best) | Thimble | The Hartford | Hiscox | |
|---|---|---|---|---|---|
| Building coverage limit (minimum) | $50,000 | $320,000 | $25,000/$500,000 | $75,000 | $25,000 |
| Contents coverage limit (minimum) | $50,000 | $35,000 | $25,000/$500,000 | $75,000 | $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 will help you recover financially from physical damage to your storefront and property contained within. Coverage examples may include:
A vandal sprays graffiti on your storefront and breaks several windows
Someone starts a fire that spreads to your thrift shop and damages the building
Outdoor sign protection–Offers coverage to any outdoor signs located outside the range of your business premise that you still want to protect from theft, vandalism, and fire damage
Earthquake insurance–This policy will help compensate for a coverage gap in standard commercial property policies because they typically won't cover damage from earthquakes, landslides, or mudslides
Commercial property insurance will protect around $60,000 in damage to your building and contents.
