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.
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.
| 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 |
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
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
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.
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
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
Get all the best quotes from leading providers in a click of a button!
| 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 |
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.
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.
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.
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.
| 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 | $25,000 | $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 |
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 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.
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
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
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.
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 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.
| Cost per Month | Cost per Year | Deductible | |
|---|---|---|---|
| General liability insurance | $39 | $468 | $0-$500 |
| Product liability insurance | Cost usually included to the cost of general liability insurance | Cost 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 Month | Cost per Year | Best for | |
|---|---|---|---|
| NEXT | $23 | $276 | Best overall; Fastest general liability insurance for toy shops |
| CoverWallet | $25 | $300 | Comparing toy shop insurance quotes over the phone |
| The Hartford | $29 | $348 | Workers compensation insurance for toy shops |
| Tivly | $30 | $360 | Comparing toy shop insurance quotes over the phone |
| Thimble | $33 | $396 | On-demand coverage for toy stores |
| Hiscox | $35 | $420 | Insurance for toy shops that renews automatically every year |
Get all the best quotes from leading providers in a click of a button!
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.
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
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
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
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
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
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
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!
It really can't get any better than this... wow
Not all those who wander are lost.
Disclosure: Insuranks.com is an independent educational comparison service and an advertising-supported publisher. Some of the companies/offers that appear on the website are from our partners which we may receive compensation from. This may influence which companies/offers we write about and where and how it appears on the site. However, this does not impact our assessments. We solely highlight companies, products, and offers that can help you make smarter insurance decisions.
