Insurance for Your Furniture Store: Get the Coverage You Need
General Liability Insurance, Workers' Comp, Auto, & More
General Liability Insurance, Workers' Comp, Auto, & More
General Liability Insurance, Workers' Comp, Auto, & More
General Liability Insurance, Workers' Comp, Auto, & More
Furniture stores and other home improvement stores have been busier than ever. Because of the Coronavirus pandemic, hundreds of thousands of people have been stuck working from home. Because of this, many of them are doing some serious home renovations—including buying new furniture.
The influx of traffic in your furniture store means you need to make sure you are properly protected against any risks you may face. As a furniture store owner, you want to make sure you have the proper insurance coverage so that your business can remain healthy. Tivly is here to help you understand the difference in the policies and clarify how they protect you. But first, let’s talk cost.
You may be worried that buying insurance may cut down on your profits. But is insurance for furniture stores really that expensive? The average furniture store spends $47 to $69 a month or anywhere from $400–$1,500 a year for $1 million in general liability coverage. However, many factors influence the cost of coverage:
An insurance agent will ask these questions (and likely a few more) to help you determine what insurance you need and how much coverage you need to get you an accurate quote.
Now that you know what a general liability policy could cost, what other furniture store insurance policies should you consider? What does general liability insurance entail?
General liability insurance covers your business if you’re accused of third-party bodily injury, third-party property damage, or advertising injuries (think libel, slander, or copyright infringement). It is the most common type of business insurance that everyone needs. This insurance plan will pay up to the policy limits you choose for expenses such as court fees, defense costs, monetary awards, and out of court settlements. Here is how this policy is usually organized:
Commercial property insurance (also called business property insurance) will cover your buildings, the property around your building, equipment, and most importantly—your inventory. It works similarly to homeowner's insurance. If a covered incident takes place, the business owner would file a claim with the insurance company. A claims adjuster will then take a look at the loss and make sure that the circumstances are within the scope of the policy. If it does, the business is compensated for the loss.
Common risks include fire, storm damage, vandalism, theft, or accident, such as a tree falling on the building. If you’re in an area of the country prone to flooding or earthquakes, consider adding these coverages:
Check with an insurance agent to find out if these additional coverages are necessary for your furniture shop.
Did you know as a small business owner, you can bundle coverage into something called a business owners’ policy (BOP)? A business owners’ policy typically includes general liability, property insurance, and business interruption insurance. A BOP is often offered to small business owners at a discounted rate compared to purchasing each insurance policy separately.
If your furniture store offers delivery services, you need commercial auto insurance. Much like a personal auto policy, the commercial auto policy out up to the policy limits.
Example: One of your delivery trucks is delivering living room furniture to a customer. En route, the driver sideswipes a car, sending it into a ditch at the side of the road, where it rolls over onto the top. The family is taken to the hospital and because you caused the accident, your furniture store is on the hook for the medical bills, rehabilitation costs, and any awards a court might make. Without commercial auto insurance, you would be out of business.
Workers' compensation insurance is a must-have business insurance coverage. Currently, all states except for Texas legally require business owners with employees to get workers' compensation. Even in Texas, you would be wise to look into this coverage, as it can save you and your business in the event an employee suffers a work-related injury, even if the injury is the fault of the employee. Workers' comp insurance will cover medical bills and lost wages for any employee who qualifies (as long as they weren’t breaking the law when they were injured).
Most furniture stores sell online or store customer information when a purchase is made. What happens if your website is hacked? All of that information can be compromised. But if you have cyber liability insurance, your insurance company can provide your impacted customers with credit monitoring. The insurance company can also help you notify impacted clients. If customer information is stolen and held for ransom, cyber liability can cover random demands.
Insurance for furniture stores doesn't have to be complicated! Our mission at Tivly is to help small businesses like yours manage risk by finding business insurance quotes at a reasonable price. Have more questions? Want to get started? Complete the form at the top of the page or call us at 877-907-5267 to get started with your free quote. We'll gladly help you get the business insurance you need to protect your furniture business.