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.
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.
CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
---|---|---|---|---|---|
General liability 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 |
Commercial property coverage limit | $50,000 | $320,000 | $25,000/$500,000 | $75,000 | $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 is an insurance package that combines general liability coverage and commercial property coverage. Policyholders also have the option to add additional coverages as well. Examples include:
Someone steals your business property
A customer slips and falls on a wet floor in your thrift store
Cyber liability–BOPs with cyber liability coverage will protect your business from the costs of data breaches, cyber-attacks and alerting customers to such incidents
Employment practices liability–Offers protection for your thrift shop if it gets sued by an employee for discrimination, harassment, or another work-related claim
A thrift store’s business owner’s policy will have around $1 million in general liability and $50,000 in commercial property protection.
Yes, according to the Consumer Product Safety Commission, resale thrift shops still have to follow guidelines for their products. This includes recalls and ensuring the inventory is safe for the general consumer and compliant with relevant federal laws. With a BOP, you can insert additional policies to help you in these events.
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 protects business property even when used away from your business premises. Examples to use this coverage include:
A thief steals the tools you need to help keep your shop tidy and orderly
A covered event of physical damage like a fire causes damage to your equipment, and it needs to be replaced
Business interruption–Helps compensate your business when it is forced to operate at a reduced capacity due to a tool or piece of equipment malfunctioning or being stolen
Flood damage–Protects your thrift shop’s tools and equipment if they get damaged in an extreme flooding event or another water-related incident
Tools and equipment insurance for thrift shops will protect movable tools for $5,000 to $20,000. Be sure to ask your insurer about higher limits.
Commercial auto insurance protects business vehicles when they are used in service of your thrift store. It provides three primary sources of protection, which include:
Auto liability–Protects you from liability claims that are related to your business vehicle. This will cover the medical expenses and property damage of third parties
Comprehensive–Helps you pay for damage to your vehicle that results from physical damage like vandalism and fire
Collision–Adds protection against repair costs when your vehicle gets into a collision accident with another vehicle
Medical payments–Provides benefits to drivers and passengers in your business vehicles when they get injured, regardless of who is ultimately found at fault for the accident
Roadside assistance–Helps your thrift shop business vehicles when they break down at the side of the road and need services or towing
Commercial auto insurance for thrift shops has an auto liability coverage limit of $25,000 per injury, $50,000 per accident, and $15,000 per property damage. This is just the minimum.
Workers' compensation insurance protects your employees from the costs of getting injured or sick while at work. Example situations to use this coverage include:
A worker cannot work due to falling while on the job and needs compensation for lost wages
One of your employees suffers an injury that requires medical treatment and medication
No, workers comp will calculate your average weekly wage and then pay a benefit based on a percentage of this calculation.
Sometimes. Typically a workers comp policy will not cover emotional injuries that result from a physical workplace event. However, some conditions can get coverage, but they are harder to prove than physical ones. Commonly covered mental health conditions include stress, anxiety disorders, depression, and post-traumatic stress disorder.
Cost per Month | Cost per Year | Deductible | |
---|---|---|---|
General liability insurance | $32 | $384 | $0-$500 |
Commercial property insurance | $50 | $600 | $1,000-$2,000 |
Business owner’s policy | $82 | $984 | $1,500 |
Commercial auto insurance | $45 | $540 | $500-$1,000 |
Tools and equipment insurance | $36 | $432 | $500-$1,000 |
Workers compensation insurance | $72 | $864 | $2,000-$5,000 |
The average thrift shop insurance cost is $32 per month or $384 per year for a $1 million general liability insurance. Factors that affect the cost of premiums are claims history, business history, policy limits, deductibles, and number of employees. Here’s a table showing the cost of a $1 million general liability insurance from the best companies:
Cost per Month | Cost per Year | Best for | |
---|---|---|---|
NEXT | $18 | $216 | Best overall; Fastest general liability insurance for thrift stores |
The Hartford | $20 | $240 | Workers compensation insurance for thrift stores |
CoverWallet | $22 | $264 | Comparing thrift store insurance quotes online |
Tivly | $24 | $288 | Comparing thrift store insurance quotes over the phone |
Thimble | $26 | $312 | On-demand coverage for thrift stores |
Hiscox | $29 | $348 | Thrift store insurance with automatic renewal |
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Here are the companies to consider for the best thrift shop insurance. 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 thrift stores
Great customer service and reputation
Excellent rates
Outstanding value for money
Get a 10% discount if you buy two or more policies
Coudln’t find any
NEXT is an online insurer that offers customized policies and affordable coverage for thrift stores. They offer important policies like general liability, commercial property, and workers' compensation. Next has an A- from AM Best and is accredited with a B+ with the Better Business Bureau.
Best for: Best overall; Fastest general liability insurance for thrift stores
Average cost: $18 per month
Our rating: 10/10
Renowned company for workers compensation insurance
Over 200 years of underwriting experience
Can underwrite specialized policies for high-risk customers
Some users report difficulties with reaching customer service at certain times
The Hartford serves over one million small businesses with excellent business policies. Thrift store owners will find options like workers comp, commercial auto, business owner’s policy, and more. The Hartford maintains a strong A- from AM Best for its financial strength.
Best for: Workers compensation insurance for thrift stores
Average cost: $20 per month
Our rating: 10/10
Compare quotes online
HNOA coverage automatically added to general liability insurance
Discounted premiums if you decide to pay for the whole year
Easy online policy management
Not an insurance company but an insurance broker
CoverWallet partners with Hiscox, Progressive, Markel, and more to deliver important thrift stores policies like business interruption, workers comp, crime insurance, and business owner’s policy. This company allows you to compare quotes online. After purchasing insurance, you can easily manage policies through this company's MyCoverWallet dashboard.
Best for: Comparing thrift store insurance quotes online
Average cost: $22 per month
Our rating: 10/10
Will quickly answer your phone call
Helps you narrow down policies and connect you with insurers
Compare quotes over the phone
You need to talk to a representative to get a quote
Tivly is an online insurance platform with over 200 partners to pick out your thrift store insurance components from. They offer various options like general liability, workers' compensation, and commercial property insurance. The company has over 20 years of experience with connecting customers to insurers. Call now to compare quotes over the phone.
Best for: Comparing thrift store insurance quotes over the phone
Average cost: $24 per month
Our rating: 10/10
Lets you scale policies with your business growth
Numerous add-ons to general liability insurance and business owner’s policy
Quickly issues an estimate of your rates
You can’t reach customer service by calling
Thimble is a fast-growing insurance company that offers you quick quotes and ways to get coverage fast. Their website has resources for first-time buyers. Policies available are general liability, commercial property, business owner’s policy, and workers' compensation insurance. Commercial auto insurance is available, but you’ll be referred to partners.
Best for: On-demand coverage for thrift stores
Average cost: $26 per month
Our rating: 10/10
Worldwide coverage
14-day money-back guarantee
Adjust coverage limits easily
Helps you customize your policy
Limited options compared to competitors
Hiscox offers customizable business insurance that is specialized for small business customers. They have experience with hundreds of professions and offer key thrift stores policies like general liability, cyber security, and workers comp. Hiscox offers a 14-day money-back guarantee. Nonetheless, we recommend working with this company in the long run because it automatically renews your coverage.
Best for: Thrift store insurance with automatic renewal
Average cost: $29 per month
Our rating: 10/10
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!