How Insurance Protects Your Kelowna Retail Store

How Insurance Protects Your Kelowna Retail Store

January 25, 2023 / 5 mins read

You’ve realized your dream and opened your own store. You’re always working with the public, which exposes you to many different types of risks.

You need to protect your investment with the right retail store insurance package.

What kind of stores need a retail insurance package?

  • Clothing stores
  • Flower shops
  • Gift stores
  • Bike shops
  • Ecommerce stores
  • Book stores
  • Pop-up stores
  • Shoe stores
  • Among others

What is a retail insurance package?

A retail insurance package helps protect your business from the different types of risks that you could be exposed to such as thefts, slips and falls and vandalism.

A retail insurance package can help protect you from these 3 common claims:

  1. What happens if an employee steals money or merchandise?
  2. What happens if a customer slips and falls on a wet floor because you forgot to put a caution sign in place?
  3. A fire destroys your store and inventory

Here’s a quick insurance checklist for your Kelowna retail business:

  • Do you have the best business insurance rate for your retail business?
  • Do you know what risks you are covered for, or not?
  • Do you have the right amount for your deductible and regularly review it to make sure it’s the right amount for you?
  • Is the number of employees up to date?
  • Do you know the value of your equipment and is it properly insured?
  • Have you thought about the consequences of cyberthieves hacking your business?

What’s in a retail insurance package?

Commercial General Liability (CGL) Insurance: This type of insurance is also known as “slip-and-fall insurance.” Just like its name, it protects your store if a customer should slip and fall on your premises and get injured.

  • This policy can help protect your business against any claims of third-party bodily injury or property damage that occur at your place of business.
  • Commercial general liability insurance generally covers medical fees, legal expenses, and settlements regardless of the outcome of a lawsuit by a customer against you.
  • Your CGL insurance policy should protect you from libel, slander, copyright infringement, and false advertising allegations.

Without commercial general liability insurance, you would be responsible for paying any liability costs out of your own pocket.

Many retail stores owners carry at least $2 million in commercial general liability coverage. Ask your Western business insurance expert about how much CGL insurance you need for your Ontario retail operation.

Commercial Property Insurance: This coverage protects your retail business and its contents. It can help keep you protected from property losses, such as theft, vandalism, fire, or a flood.

What if there’s a heavy rain and the sewers back up and your business is flooded? You should consider adding sewer backup or overland flood coverage extensions, which standard business insurance policies typically do not cover.

You can also consider adding earthquake insurance.

Creating a contents inventory is necessary if you file a claim for damage or loss due to an insured event.

You’ll also need to do a total inventory of all your business property to determine how much commercial property insurance you will need.

Cyber Liability Insurance: Does your business use e-commerce and take orders and payments online and in store? Do you store client data electronically?

If you use computers for any purpose in your business, you could be at risk for a cyberattack or data breach. These attacks can have serious consequences for your business, both financial and reputational.

If your computer system is hacked, cybercriminals can sell the information. Without cyber insurance, you will have to pay out of your pocket for the cost of restoring your system. You may also be liable for damages to third parties whose information has been stolen and you may have to pay for notification expenses to inform customers affected by a breach.

Crime Insurance: Crime insurance provides coverage for events not covered by most property or liability insurance policies.

This type of coverage can protect your retail business from losses due to:

  • Employee fraudulent acts, for example: An employee forges your signature and withdraws money from your account
  • Theft of money
  • Counterfeit money or money orders
  • Depositors’ forgery
  • Credit card, debit, or automated teller card fraud

Product Liability Insurance: It provides protection against claims alleging third-party property damage or bodily injury caused by a product you sell, distribute, or manufacture.

Damages covered by product liability are usually the result of a defect in the design, manufacturing, or marketing, such as an incorrect label or a lack of safety warnings.

Business Interruption Insurance: Business interruption insurance supports you when your retail store cannot operate due to a covered loss. Being prepared for the unexpected can be the difference between recovering from a loss and closing your business permanently.

There are many losses that can force your business to shut down. Some examples include:

  • Damage to your storefront from fire or vandalism
  • Damage to a neighboring business
  • A major reduction in revenue due to a client/supplier facing losses of their own
  • A disruption in your supply chain

Business interruption insurance can help with expenses such as:

  • Payroll
  • Rent
  • Utilities
  • Property taxes
  • Alarm monitoring
  • Relocation of your business

Commercial Auto Insurance: If you have a business car that you use for your retail operation, it needs commercial coverage as part of your insurance package. Your personal car or truck insurance usually won’t cover your company vehicles.

How much retail insurance do I need?

It will depend on the size of your Kelowna retail store and what you are selling.

That means it’s unlikely that all retail outlets would pay the same monthly or annually for their coverage.

Ask your Western business insurance expert to determine the right level of coverage for your retail business.

What do I do if my retail business has an insurance claim?

  • Contact your insurer immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
  • Know your policy so that when you contact your insurer you are familiar with what will be covered or not.
  • Document the damage. Take photos right away and write down what happened.
  • Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
  • Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
  • Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.

Western Insurance has licensed BUSINESS INSURANCE EXPERTS to get your Kelowna retail business the right insurance package. Our experts are available now to help you navigate the business insurance journey to protect your retail business.

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