Toy Store Insurance: Cost & Quotes From $11/mo

Kids develop mentally and physically by playing. Play is more exciting by having toys. In connection, your toy store acts as the go-to for people who are looking for fun gifts for their children. 

Toy store insurance protects shop owners from financial hardship when they suffer a loss. This might be a result of different exposures.  For example, the toys you’re selling must have been made negligently by the artisan and it may cause injuries to the user. You can’t also rule out the possibility of slip and fall accidents. Theft or employee dishonesty will push your business back.

Without toy shop insurance, your business could easily be looking at bankruptcy. Understanding what coverages are available for a toy store and how much to carry is important. This knowledge allows companies to budget for the best coverage at the best price.

Toy Shop Liability Insurance

Liability coverage is the first type of toy store insurance to think about. After all, nothing can hold your business back as much as lawsuits. Toy shop liability insurance is offered as a general liability policy and product liability policy. 

General Liability Insurance for Toy Shops 

CoverWallet NEXT (Best)Thimble HiscoxThe 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
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
Waiver of subrogation included?YesNoIncludedCan be includedNo
Hired/non-owned auto liability coverage included?YesNoExcludedCan be includedCan be included
Equipment breakdown floater included?No YesYesCan be includedCan be included

A commercial general liability policy is arguably the most important insurance coverage for any small business. It offers protection against these exposures that your toy store faces:

  • Property damage-General liability insurance grants protection if your toy shop’s operations harm someone’s property. For example, if an employee in your toy shop causes a customer to drop their phone, general liability insurance can help cover the repair or provide a reimbursement

  • Personal and advertising injury-Your toy store can also use general liability insurance to cover claims for slander, libel, copyright infringement, wrongful eviction, and breach of confidentiality

  • Bodily injuries-In case someone experiences an accident while shopping in your toy store, general liability insurance can cover the cost of the person’s medical treatment. The policy will also cover legal defense and settlements if the aggrieved third party decides to sue 

What Add-ons Can Your Toy Store Include in Its General Liability Insurance?

You might be allowed to include these optional policies to your toy store’s general liability policy:

  • Non-owned/hired auto liability coverage

  • Customer property coverage

  • Cyber liability coverage

How Much General Liability Insurance Does Your Toy Store Need?

Your toy store will do fine with a $1 million general liability policy. However, if you operate in more than one location in the same city, then it’s smart to get a $2 million-$4 million general liability policy. 

Product Liability Insurance for Toy Shops 

Your liability doesn’t end with accidents in the business premises and troubles inflicted to others because of your business operations. Clients can also hold you responsible for damages caused by the toys bought from your toy shop. What takes care of this exposure is product liability insurance. 

Product liability insurance will allow you to cover medical treatments, reimbursement for property damage, legal defense, and product recall costs if your toy shop is accused of selling toys with:

  • Manufacturing errors

  • Labeling errors

  • Factory defects

In Which Situations Can You Use Product Liability Insurance?

Here are some realistic situations where product liability insurance can protect your toy shop:

  • Your business is sued after a child choked on the toy bought from your store

  • A homeowner is suing your business after his house got burned by a fire and fire officers said that the origin was the toy from your store with defective wiring

  • A lawsuit is filed against your store after a customer discovered that you sell toys with high amounts of lead

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Commercial Property Insurance for Toy Stores

CoverWalletNEXT (Best)ThimbleThe HartfordHiscox
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 signsExcluded$2,500ExcludedExcludedIncluded
Accounts receivableExcludedExcluded$5,000/$10,000ExcludedIncluded
Money and securitiesExcluded$2,500$1,000ExcludedIncluded
Lock and keysExcluded$2,500ExcludedExcludedIncluded
Business interruption floaterExcludedIncludedIncludedExcludedIncluded
Equipment breakdown floaterExcludedIncludedExcludedExcludedIncluded
Inland marine insurance floaterExcludedExcluded$10,000ExcludedExcluded
Employee dishonesty floaterExcluded$5,000$2,500ExcludedExcluded

Once a company covers its risk of financial loss from a lawsuit, it must also get coverage for property losses. Property coverage includes coverage for:

  • Brick-and-mortar store

  • Inventory or stock

  • Equipment such as POS systems, AC, and other valuables

Commercial property insurance packages may cover one or multiple types of property. A business-savvy toy store makes sure that every loss is covered that could cause irreparable damage to their bottom line.

What Perils Are Covered by Commercial Property Insurance?

Basic covered perils include:

  • Fire

  • Lightning

  • Explosion

  • Smoke

  • Wind

  • Hail

  • Riot

  • Aircraft

  • Vehicles

  • Vandalism

  • Sprinkler leaks

  • Sinkholes

  • Volcanoes

Commercial property insurance doesn't cover all types of losses, and things like floods or landslides may require separate policies. You should carefully read the language of your commercial property insurance to make sure that endorsements are available to cover gaps.

I Sell Toys Online on Amazon. Do I Still Need Commercial Property Insurance?

Commercial property insurance is still useful even if you’re selling toys online instead of in a brick-and-mortar location. It’s because this insurance also covers the value of the toys you’re about to sell. That said, in case your inventory gets damaged or destroyed, commercial property insurance sees to it that you can replace them without any problems.

Does Commercial Property Insurance Cover the Value of Toys That Got Damaged Due to Mishandling?

It’s normal for some of the toys you’re selling to be mishandled by customers or employees even before they’re sold. So, is this covered by commercial property insurance? The answer is no. The policy excludes mishandling or carelessness as a covered peril. Try to ask the insurance company if there’s an endorsement that can address this gap.

Business Owner’s Policy for Toy Shops

CoverWalletNEXT (Best)ThimbleHiscoxThe 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$25,000$75,000
Optional policies can be added?YesYesYesYesYes
Name additional insureds for free?YesYesYesYesYes
BOP discount?YesYesYesYesYes

It’s best to purchase general liability insurance and commercial property insurance for your toy shop. However, purchasing general liability and commercial property insurance as separate policies will result in costly premiums.

Insurance companies help you solve this issue by offering a business owner’s policy. Use the table above to see which insurance company offers the best business owner’s policy for toy shops.

Employee Dishonesty Insurance for Toy Shops

Employee dishonesty insurance will soothe your worries about employees committing dishonest acts and causing losses. This policy will reimburse some of the lost money when an employee commits theft, forgery, misrepresentation, embezzlement, social engineering, fraud, and other related offenses. Some insurance companies include employee dishonesty insurance as an additional coverage in commercial property insurance.

Workers Compensation Insurance for Toy Shops

Your business will eventually grow and hire employees. As a result, you must purchase workers' compensation insurance.

Workers' compensation insurance will kick in if an employee slips and falls, gets cut while assembling a toy, falls from a height while arranging the inventory in the storage room, or gets involved in an accident while running an errand for your business.

Costs, which are usually covered by workers' compensation insurance, are as follows:

  • Emergency care

  • Hospitalization

  • Medication

  • Rehabilitation and retraining

  • Lost wages

  • Death benefits

Commercial Auto Insurance for Toy Shops

Avoid skipping commercial auto insurance if a vehicle is integral to the daily operations of your toy retail business. We highly recommend getting this policy if you operate a mobile toy store.

Commercial auto insurance grants protection against the exposures that can happen while your commercial vehicle is on the road. Here are the most common functions of this toy shop insurance policy:

  • Get injured third parties hospitalized if your commercial vehicle causes a road accident

  • Get the driver and passengers hospitalized if your toy shop’s commercial vehicle gets involved in an accident caused by an uninsured/underinsured driver

  • Cover the repair of your toy store’s commercial vehicle if it gets damaged by fire, theft, collision, vandalism, lightning, and other covered perils

  • Cover the repair of any attached trailer that got damaged by fire, theft, vandalism, lightning, and other covered perils

Will Commercial Auto Insurance Cover the Cost of Damaged Toys Loaded in Commercial Vehicles?

Let’s say you’re using a commercial vehicle to haul the new toys to be sold. An accident happens and they get damaged or destroyed. Does commercial auto insurance cover the value of these items? The answer is no. It’s because the toys aren’t part of your auto. Solve this problem by purchasing inland marine insurance or cargo insurance.

Cyber Liability Insurance for Toy Shops

Do you sell toys online through an owned website? If this is the case, why not think of purchasing cyber liability insurance?

Cyber liability insurance will grant protection if customer data and important business information end up in the hands of cybercriminals because of a data breach, a network security issue, ransomware, malware, phishing, and other related perils.

Insurance companies design cyber liability insurance to cover these costs:

  • Public relations

  • Data recovery

  • Cyber ransom

  • Legal defense

  • Reimbursement for the value of damaged business software

Inland Marine Insurance for Toy Shops

Inland marine insurance will reimburse your losses if the toys about to be delivered get damaged or destroyed due to fire, theft, vandalism, lightning, vehicular accident, or negligence of the shipping carrier. You can get this insurance as an add-on to general liability or commercial property insurance.

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Toy Store Insurance Cost 

Cost per MonthCost per YearDeductible
General liability insurance$39$468$0-$500
Product liability insuranceCost usually included to the cost of general liability insuranceCost usually included to the cost of general liability insurance$0-$500
Commercial property insurance$50$600$1,000-$2,000
Business owner's policy$90$1,080$1,500
Commercial auto insurance$42$504$500-$1,000
Workers compensation insurance$97$1,164$1,000-$2,500
Cyber liability insurance$60$720$1,000-$2,500
Employee dishonesty insurance$40$480$1,000-$2,500

The average toy store insurance cost is $39 per month or $468 per year for a $1 million general liability policy. Cost factors for toy store insurance generally include:

  • Number of employees-The more employees a company has, the higher a policy premium is going to be in most cases. In some cases, the price per employee will decrease at a certain threshold. However, bigger businesses with more employees should expect to pay more for suitable insurance coverage. This is especially true for workers compensation policies

  • Policy limits-Depending on the size of the business, a $1 million policy limit may be enough. Many people carry $1 million per occurrence and $2 million aggregate limit. Higher limits equal higher risk to the insurance carrier, which results in costlier policies

  • Deductible-A deductible is the amount you return to the insurance company when a claim is approved. Insurance companies would have less risk of payouts with larger deductibles

  • Location-Toy store insurance rates vary based on the region and the state. Those in urban areas with high rates of vandalism may have to pay more because of an increased risk of loss

  • Loss history-Finally, stores that have frequent losses set a pattern that tells the insurance company they are likely to continue to have losses. Similarly, no loss history means there is less risk

In connection, here’s a table showing the cost of a $1 million general liability insurance from the best toy shop insurance companies:

Cost per MonthCost per YearBest for
NEXT$23$276Best overall; Fastest general liability insurance for toy shops
CoverWallet$25$300Comparing toy shop insurance quotes over the phone
The Hartford$29$348Workers compensation insurance for toy shops
Tivly$30$360Comparing toy shop insurance quotes over the phone
Thimble$33$396On-demand coverage for toy stores
Hiscox$35$420Insurance for toy shops that renews automatically every year

Compare Cheap Toy Store Insurance Quotes Online

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Best Toy Shop Insurance Companies 

Aim to work with the right company to make the most of your money. Here are the best toy shop insurance companies. Read some of the reviews below to know their pros, cons, and rate for a $1 million general liability insurance. 

NEXT Toy Shop Insurance


  • Best overall

  • Issues an online proof of insurance instantly

  • Fastest general liability insurance for toy shops

  • 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 insurance grants coverage to small businesses and independent professionals online. On the small business side, this company has insured 400,000+ customers and has garnered a 4.7/5 rating. NEXT covers toy shops in partnership with Tivly. NEXT’s toy shop’s insurance package consists of:

  • $1 million-$2 million general liability insurance

  • $1 million product liability insurance

  • $320,000 commercial property insurance

  • Workers compensation insurance

  • Commercial auto insurance

  • Business owner’s policy

Best for: Best overall; Fastest general liability insurance for toy shops

Average cost: $23 per month

Our rating: 10/10

CoverWallet Toy Shop Insurance 


  • Sells events coverage for toy stores

  • Compare toy shop insurance quotes online 

  • Cancel your coverage anytime with no charges

  • Buy a quote online or with the help of an agent 


  • Not an insurance company but an insurance broker 

CoverWallet, a subsidiary of AON, is an insurance broker. It grants coverage by giving you the quotes of different insurance companies that underwrite coverage for toy shops. This is done through an online quotes comparison platform which collects your business information and then generates the appropriate quotes accordingly. Your toy shop insurance package from CoverWallet offers the following:

  • $1 million-$2 million general liability insurance

  • $1 million product liability insurance

  • $50,000 commercial property insurance

  • Workers compensation insurance

  • Business owner’s policy

Best for: Comparing toy shop insurance quotes over the phone

Average cost: $25 per month

Our rating: 10/10

The Hartford Toy Shop Insurance


  • Hired/non-owned auto liability coverage automatically included to general liability insurance

  • Waiver of subrogation automatically included to general liability insurance

  • Number 2 best company for workers compensation insurance

  • Has insured millions of small businesses


  • There might be hidden charges

The Hartford is an insurance company that works with established businesses and grants unique coverages to them. Nonetheless, it also caters to the needs of a million small businesses. You get covered through this company’s toy store insurance package that offers a:

  • $1 million-$2 million general liability insurance

  • $75,000 commercial property insurance

  • Workers compensation insurance

  • Commercial auto insurance

Best for: Workers' compensation insurance for toy shops

Average cost: $29 per month

Our rating: 10/10

Tivly Toy Shop Insurance


  • Compare toy shop insurance quotes over the phone

  • Responsive customer service 

  • A partner of many reputable companies such as NEXT, The Hartford, and Thimble


  • You have to call to get a quote 

Tivly is another insurance broker that allows you to compare toy shop insurance quotes easily. But note that this company goes for a more personalized approach, since you need to talk with a representative. That said, call Tivly now to differentiate offers and get covered in an instant. 

Best for: Comparing toy shop insurance quotes over the phone

Average cost: $30 per month

Our rating: 10/10

Thimble Toy Shop Insurance


  • General liability insurance is available as a short-term policy

  • Customizable general liability and commercial property insurance limits

  • Grants coverage without a lot of questions

  • High TrustPilot ratings

  • Hailed by Money as the best insurance for small businesses


  • Business owner’s policy isn’t available if you’re leasing or renting a commercial space 

Go for Thimble if you want to work with an insurance company that doesn’t ask a lot of questions when granting coverage. Thimble has sold at least 100,000 policies, has earned a 4.7 rating from reviews in trustpilot, and is an A-rated company. Your toy shop insurance package from this carrier offers the following:

  • $1 million-$2 million general liability insurance

  • $25,000-$500,000 commercial property insurance

  • Business owner’s policy

  • Workers compensation insurance

  • Commercial auto insurance

Best for: On-demand coverage for toy stores

Average cost: $33 per month 

Our rating: 9/10

Hiscox Toy Shop Insurance


  • Automatic policy renewal

  • Worldwide coverage

  • Vast experience

  • Great customer ratings from Feefo


  • Online quoting isn’t available all the time due to periodic site maintenance 

Just like The Hartford, Hiscox is an insurance company with a vast experience in underwriting business insurance for small and big businesses. Over 500,000 small businesses choose Hiscox for custom-tailored policies that can be quickly claimed. While it doesn’t have a toy shop insurance package, Hiscox will cover your business through its general merchandise store insurance program. This offers the following:

  • $300,000-$2 million general liability insurance

  • $250,000 cyber liability insurance

  • $25,000 commercial property insurance

  • Business owner’s policy

Best for: Insurance for toy shops that renews automatically every year

Average cost: $35 per month

Our rating: 9/10

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