Insurance for Flooring Retailers
Retailers that specialize in flooring need custom-fit commercial insurance. That means insurance for flooring retailers must have enough liability insurance to protect against lawsuits.
Liability insurance protects your retail flooring business against legal claims for accidents causing third-party bodily injury or third-party property damage that could involve your customers or suppliers.
Western Financial Group, a 100% Canadian company, can help you navigate your car, home, and business insurance during this period of economic uncertainty.
What is insurance for flooring retailers?
Your retail flooring business is exposed to risks because you deal with people, customers and suppliers. Business insurance for flooring retailers protects you against risks that are associated with selling and distributing flooring products. Your retail flooring policy can be customized to shopping in-store and shopping online.
Who should get retail flooring insurance?
- Carpet retailers
- Flooring retailers
- Flooring distributors
Liability coverage is the cornerstone of your flooring business insurance package.
You need these liability coverages to protect your flooring business from lawsuits.
Commercial general liability (CGL) insurance
This is necessary liability insurance for flooring retailers. Without CGL insurance, you will pay the costs out of your own pocket related to third-party (customer/supplier) injuries or damage to their property.
If you were sued, commercial general liability insurance would cover the legal costs to defend the claim against your retail flooring business in court, as well as costs to cover damages to compensate third parties whether you win or lose your case.
What kind of risks does commercial general liability insurance cover?
- Injury to a third party who is not your employee
- Damage to someone’s property
- Damage to rented property
- Medical bills if someone is injured
- Legal costs and settlement costs of liability lawsuits filed against you
- Liability lawsuits related to slander and libel
It would not be unusual to have $2 million or as much as $5 million or more in CGL coverage, depending on the size of your retail flooring business.
Western Financial Group has an Independent Retail Insurance Program that offers commercial insurance coverage options that are specific to independent retailers' needs. We work with your store location to provide an insurance program that provides superior coverage and manages your risk.
Product liability insurance
Product liability insurance is recommended for flooring retailers who sell, manufacture, or distributes a flooring product. It provides protection against claims alleging third-party property damage or bodily injury caused by a product you sell, distribute, or make.
Product liability insurance covers:
- Design defects: There’s something wrong with the product’s design.
- Manufacturing defects: Something went wrong during manufacturing.
- Marketing missteps: A mistake in marketing materials, such as improper labels.
- Insufficient warnings: The product doesn’t include sufficient warning/information about potential harm.
Cyber liability insurance
Cyber liability insurance is a smart business insurance coverage for flooring retailers, given the popularity of credit, debit, and online payments. Cyber liability insurance will help protect your Toronto retail store financially in case of a cyber-attack.
Depending on the size of the data breach and the information that was taken, the customers who are affected can hold you liable and sue you for damages. That’s when cyber insurance can protect you financially.
What other types of insurance do retail flooring businesses need?
Commercial property insurance
Commercial property insurance provides financial support to replace or cover repairs to your retail flooring business if it is damaged by a flood, fire, or severe weather. It also covers vandalism and theft.
Commercial property insurance also covers the firm’s contents such as computers, furniture, tools, equipment, and inventory. Commercial property coverage also extends to protect others’ property that is under your care.
Business interruption insurance
This type of insurance supports you when your flooring cover business can’t operate due to a covered loss.
There are a number of losses that can force your retail flooring business to shut down. Some examples are:
- Damage to your equipment from fire or vandalism
- 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 these expenses:
- Payroll
- Rent
- Utilities
- Property taxes
- Alarm monitoring
- Relocation of your business
Crime insurance
Shoppers and staff may have the opportunity to steal from your retail flooring business. Crime insurance helps protect you against certain types of losses that are not covered by a standard commercial property policy, such as: employee theft, credit, debit or automated teller, counterfeit money, or loss of money at your store.
Business insurance add-ons for your retail flooring store:
Overland flood insurance
Overland flood insurance provides protection for loss or damage related to water entering a property from a sudden accumulation of water. This usually results from heavy rain, spring run-off, or overflow from lakes or rivers. If you don’t have this add-on, you may not be covered.
Sewer backup coverage
Sewer backup coverage helps protect your retail store against water damage from sewer backups. Note that sewer backup insurance does not cover every type of water damage insurance claim.
In Canada, most standard commercial property insurance policies do not automatically cover sewer backup and overland flooding.
Final thoughts
Business insurance with strong liability coverage protects your retail flooring business from lawsuits and other unexpected mishaps. Can you afford to be without commercial insurance for your retail flooring business?
5 FAQs about business insurance
How much liability insurance coverage do I need for my flooring business?
It wouldn’t be unusual to have $2 million to $5 million in commercial general liability (CGL) coverage or more, depending on the size of your business and what it sells or the services it provides. CGL insurance protects you against third-party injuries and property damage usually involving customers or suppliers.
How is my business insurance premium calculated?
Business insurance premiums are usually influenced by business size, number of employees, location, claims history, deductibles, annual revenues, services provided or products sold, and risk reduction measures.
How can I lower my business insurance premium for my retail flooring business?
Savings can come from choosing higher deductibles, maintaining a claims-free history, and taking advantage of multi-policy and loyalty discounts. Ask your business insurance expert if a bundled package of commercial insurance coverages will get you a discount. Review your policy annually to make sure it is still covering your business adequately.
Why is a certificate of insurance important for my retail flooring business?
A certificate of insurance (COI) shows your clients that you have active insurance coverage for your business, including the types and limits of that coverage. It is provided at no charge by your business insurance provider.
Is a home-based business covered by a homeowner’s policy?
Not usually. A standard homeowner’s policy usually offers limited or no coverage for business activities, especially for professional liability or business equipment. You’ll need to consider separate business insurance to protect your home-based business.
