Whether you own a boutique showcasing the very latest runway trends or a thrift store with vintage threads, you put time, money, and effort into your shop to entice your target market. But without a risk management plan, your clothing boutique could suffer.
Running an apparel business has its own set of challenges and rewards. Too many business owners are hit with unwelcome surprises because they simply forgot to review their insurance. Don’t take unnecessary risks, let us check your current policy for areas you may be uninsured or underinsured.
Type of Clothing Store Insurance…
General Liability
If a customer falls inside your boutique, he or she might sue the store for negligence. Prepare your store for the possibility of such lawsuits and purchase a general liability insurance policy to help defer the costs of associated legal expenses.
A general liability policy can be purchased on its own or in combination with a property insurance policy. If your sued, general business liability coverage will protect your store’s assets whether at fault or not, for causing personal injury or property damage, unless specifically excluded.
Property Insurance
Commercial property insurance protects against damage to company property including buildings and inventory. Does your boutique have a significant amount of the value of its business tied up in inventory? Smoke, water and fire damage can completely ruin clothing, whereas they might only partially damage the inventory of other types of businesses.
Property insurance coverage provides protection against these perils. An open peril policy covers all causes of losses not excluded specifically in the policy. On the other hand, named perils must be listed on the policy in order to provide coverage for a loss. A property insurance coverage policy can be tailored to meet the specific needs of your store.
Crime Insurance
All small businesses are susceptible to theft; however, some business are more prone to burglaries and shoplifting than others. Given the high price of the clothing in many boutiques and the relative ease with which items of clothing can be concealed, shoplifting in particular is very common in clothing boutiques.
Employees, customers and passersby put you at risk of theft and the potential loss. This insurance cover all types of crimes including theft, vandalism, shoplifting and dishonest employee practices. In addition, many customers pay for items you sell via cash, making you liable for crimes of theft.
Inland Marine Coverage
Inland marine insurance is designed to protect your property while in transit. This coverage also protects your inventory being held in storage. When inventory is stolen in transit or at the storage site, an inland marine policy would cover the loss. Referred to as a floater, it’s highly recommended to fill in the gaps in your insurance coverage and is usually purchased as a supplement.
Business Owners Insurance
This is a package policy that combines different types coverage into one policy, such as electronic data, newly acquired buildings, building and contents, dishonest employee coverage, and business income or extra expense. If there was a natural disaster in your area that caused damage to your building and contents, the BOP can cover repairs and replacements of equipment as well as help cover the business income you lose while the repairs are being done. These policies are usually less expensive as a package policy.
