Insurance for Hardware Stores

General Liability Insurance: This policy covers third-party risks, including customer injuries and property damage.

• Importance: Protects against significant financial losses from lawsuits and medical expenses.
• Coverage: Medical expenses, legal fees, and settlements related to third-party injuries and property damage.
• Best For: Slip-and-fall accidents, damaged customer property, product liability.

Business Owner’s Policy (BOP): A BOP combines general liability, commercial property insurance and business interruption insurance. This is a cost-effective option for small to medium sized businesses.  

• Importance: Offers comprehensive coverage in a single policy, saving costs and simplifying management.
• Coverage: Combines general liability, property insurance and business interruption insurance to cover a wide range of risks.
• Best For: Bundled coverage for customer injuries, business property damage and business interruption.

Workers’ Compensation Insurance: If you have employees, this insurance is legally required. It covers medical costs and lost wages if an employee gets injured on the job.

• Importance: Provides essential financial support for injured employees, ensuring legal compliance.
• Coverage: Medical expenses, rehabilitation costs, and lost wages due to workplace injuries.
• Best For: Employee medical costs, disability benefits, injury lawsuits.

Commercial Auto Insurance: Covers vehicles owned by your business, protecting against accidents, property damage, and theft.

• Importance: Essential for businesses that use vehicles for operational purposes, ensuring coverage for auto-related incidents.
• Coverage: Covers damages and medical costs from auto-related incidents.
• Best for: Property damage caused by your vehicle, liability coverage in an accident, repairs due to vandalism or weather.

Cyber Insurance: Protects your business from cyberattacks and data breaches. Essential for businesses handling credit card payments and personal information.

• Importance: Safeguards sensitive data and helps mitigate the impact of cyber incidents.
• Coverage: Client notification expenses, data breach investigations, fraud monitoring costs.
• Best for: Protection against cyber threats and data breaches.

Commercial Umbrella insurance: Provides additional coverage when the limits of your other liability policies are reached.

• Importance: Offers extra protection beyond standard policy limits.
• Coverage: Excess liability for auto, general, and employer’s liability.
• Best for: High-value lawsuits, extensive liability claims, catastrophic events.

Depending on your business needs, consider these additional coverages:

• Business Interruption Insurance: Compensates for lost income if your operations are halted due to an insured event. This coverage ensures that businesses can maintain financial stability and continue to pay necessary expenses during periods of interrupted operations.
• Commercial Property Insurance: Covers damage to your business property from events like fires, floods, or vandalism. This coverage is essential for protecting the physical assets of a business.
• Crime Insurance: Provides protection against theft, including employee theft, burglary, and robbery. This coverage helps businesses recover financially from losses due to criminal activities.
• Electronic Data Processing (EDP) Insurance: Covers financial losses from destroyed POS systems or customer databases. This insurance is vital for businesses that rely on electronic data and systems.
• Product Liability Insurance: Provides financial protection against lawsuits related to products you sell. This insurance is crucial for businesses that manufacture, distribute, or sell products.
• Professional Liability Insurance: Covers claims of negligence or errors, legal costs from professional negligence claims, and inaccurate appraisals. This insurance is crucial for professionals who provide advice or services.
• Equipment Breakdown Insurance: Covers costs of repairing or replacing broken equipment, ensuring continued operations. Essential for businesses relying on machinery.
• Inland Marine Insurance: Protects goods in transit or at off-site locations, including high-value items in transit. Essential for businesses frequently moving goods.
• Hired and Non-Owned Auto (HNOA) Insurance: Covers vehicles used for business purposes that are not owned by the business.