You Better Shop Around
An Agent's Guide to Retail Insurance

An Introduction to Insurance for Retailers: Where Does One Shop End and Another Begin?

Is it an election year? If so, you’ve probably heard the phrase, “Small business is the backbone of the American economy” ad nauseam. Still, it’s hard to argue that point, especially when the Small Business Administration claims [PDF] that 99.7 percent of US employer firms are considered small businesses.

Though entrepreneurs are found in every sector, retail is often a big draw for those looking to be their own boss. According to the most recent Census data, of the 1,062,942 retail establishments in the United States…

  • 612,385 have fewer than 20 employees.
  • 533,449 have fewer than 10 employees.
  • 396,763 have fewer than five employees.

Small businesses dominate retail, but as an industry, it covers a laundry list of shop types. Do you know what kind of insurance an athletic apparel store needs?  What about a store that sells office equipment? Or party supplies?

If you're scratching your head, this eBook can help. In it, you’ll discover…

  • The basic commercial insurance policies for retail shops.
  • Facts and figures to help you determine the opportunities in retail insurance.
  • Questions to help you investigate your client’s unique risks.
  • Information about classifying different types of retail stores.
  • The specialty coverages certain retailers should consider.

Retail is an industry rich with possibility, but only if you know what insurance retail stores need. Use this guide to focus your marketing and grow your book of business.

Tips for Writing Retail Insurance

Is there a town in American that doesn’t have a Main Street? It might not always be called "Main Street," but every city has that one stretch of road that’s the heart of commerce. It probably has a gift store or a trendy boutique. Maybe there’s a consignment shop and a bookstore, too. It the kind of place where shops are owned by neighbors – people the customers know by name.

The romanticized idea of Main Street isn’t too far from reality. According to the National Retail Federation, more than 98 percent of the retailers in this country employ fewer than 50 people.

In other words, the retail industry is home to a lot of small-business owners who need insurance. But if a storekeeper came to you for help, would you be up to the task? For example, do you know…

  • If General Liability Insurance addresses all of a pharmacist’s responsibilities?
  • How online sales might impact liability coverage?
  • Whether a standard Property Insurance policy is sufficient for a jeweler?
  • What policy protects a shop owner when a product causes an injury?

This next section answers questions like these for the various retailers who might come your way. Find the section that best represents your client to learn some of their unique risks and insurance needs.