Retail Insurance Cost

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Retailers face a number of risks that other industries may not typically have to deal with, making it all the more important for them to have the right retail insurance coverage.

Even if you already take certain precautions, such as locking up the cash register and store at night, you may be leaving your business at risk without retail insurance.

However, before you start shopping for policies, it’s important to understand the cost of retail insurance, what types of insurance you may need, and where to find the right coverage.

Read on to understand what kind of insurance you may need.

We'll Cover

  • What Is Retail Insurnace?
  • What Does Retail Insurance Cover?
  • How Much Does Retail Insurance Cost?
  • Who Needs Retail Insurance?
  • Which Kind of Retail Insurance Do You Need?
  • Tips for Buying
  • FAQ
  • Summary

What Is Retail Insurance?

As retailers’ business models revolve around selling inventory, it can be devastating when you suffer significant inventory loss.

Retail insurance offers a way for retailers to protect themselves from financial loss due to inventory theft, damage, vandalism, property damage, and other incidents.

Additionally, it’s important to protect yourself and your business in case of an employee or customer injury that occurs on your business property. Without the right coverage, you may suffer significant income loss if they choose to take legal action against you.

What Does Retail Insurance Cover?

Coverage depends on the specific provider and policy that you choose.

That being said, the following incidents are typically covered by a retail insurance policy:

  • Employee or customer injury
  • Vandalism
  • Property damage
  • Theft
  • Burglary or robbery
  • Inventory spoilage
  • Legal costs and settlements

Retail insurance policies can be customized to accommodate your specific needs and, of course, more coverage will increase the cost. Be sure to review your policy closely to understand what is and is not covered.

How Much Does Retail Insurance Cost?

The cost of retail insurance depends on a variety of factors, including the type of policies that you get, the location of your business, the size of your business, your previous insurance claims, and more.

With that in mind, you can expect the following rates:

  • $39/month for General Liability coverage
  • $49/month for General Liability + Property coverage
  • $49/month for Business Owners Policy + Workers Compensation coverage

Who Needs Retail Insurance?

Any retail business can benefit from retail insurance. This includes but is not limited to:

  • Wholesale retailers
  • Consumer retailers
  • Specialty retailers
  • Grocery retailers
  • Discount retailers
  • Clothing retailers

If your business carries inventory, retail insurance can protect you from significant financial loss in case you lose any products.

Which Kind of Retail Insurance Do You Need?

There are several types of policies that retail businesses should consider taking out, such as:

General Liability:  Offers coverage for property damage, bodily injury, personal injury, and other accidents. Typically considered the minimum coverage any retailer should have.

Business Owners Policy (BOP):  A Business Owners Policy allows you to combine multiple policies to ensure your business is adequately covered. This type of plan typically comes at a lower cost while providing extensive coverage.

Workers Compensation:  Covers lost wages and medical costs that are the result of a work-related injury to an employee. It can also protect your business from any injury lawsuits. Depending on the state, you may be required to have this insurance.

Commercial Auto:  Offers coverage for your business’ vehicles and provides extra coverage in the event of an auto accident.


Do I need general liability insurance?
General liability insurance protects retailers from lawsuits and claims made against them due to damage or injury. As such, all retailers should have general liability coverage.

What risks do retailers face?
Retailers face a number of risks, including inventory theft, spoilage, and damage. They may also be held liable in the event of bodily injury, illness, or death, and other accidents.

What is umbrella insurance?
Umbrella insurance refers to liability insurance that makes up for losses not covered by your other insurance policies.


Retailers face a variety of risks and challenges that can result in significant losses if they don’t have adequate coverage.

By understanding the cost of retail insurance, where to find it, and what type of coverage you need, you can find the right policy to protect your business.