Company insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for an antique shop.
This article will discuss the primary insurance coverage for antique shops, general liability insurance, as well as additional products that are appropriate for this industry.
Antique Store General Liability Insurance
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
Common Situations That An Antique Store’s General Liability Insurance May Cover
Example 1: A freelance antique consultant/dealer is working on her laptop in your store as a middleman, negotiating a contract between you and a distant client. An employee inadvertently spills his coffee on her laptop, which is worth thousands of dollars. If you were judged to be at fault, general liability insurance would most likely pay part of the costs.
Example 2: A client brings in a highly pricey vase for an estimate. You drop it on the floor by mistake, and it shatters. If found guilty, your company would most likely be compensated for a portion of the projected losses or a settlement struck between you and the client.
Example 3: One of your workers who controls the antique store’s web presence tweets playfully about another nearby antique shop being “managed by criminals.” He retracts the tweet, but the picture of the other antique shop’s storefront becomes a viral meme. Your company is being sued for slander. General liability insurance would most likely cover part of the losses or settlement made by your company.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
General Liability Insurance Cost
The typical antique business in America pays $400-$1,500 per year for $1 million in general liability insurance.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
Other Types of Coverage Required by Antique Stores
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all antique businesses should have are as follows:
Insurance for Commercial Property
An antique shop cannot function without a commercial property coverage to protect its goods. Antiques are sometimes irreplaceable relics of the past. These items are just “priceless” in a colloquial sense – they are really valuable to your company. In the case of a calamity, such as a fire or severe weather, your inventory may be protected by a commercial property coverage for any losses sustained.
Insurance Against Crime
Many precious antiques are tiny enough to be taken in an instant. Crime insurance covers employee theft of company or customer property, as well as damages caused by forgeries. So, if a client asks you to evaluate his antique collection and it is stolen overnight by an employee, crime insurance might compensate you. Alternatively, if your company purchases a valued signed document and it turns out to be a worthless fake, this may also be protected by a good crime insurance coverage. Other coverage options include digital fraud and physical money theft on your premises.
Types of Insurance That Some Antique Stores May Require
In addition to the insurance listed above, your antique business may need other forms of coverage based on particular elements of your activities. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Insurance for Home-Based Businesses
This is a good option if you want to save money on rent and work from home. Don’t assume that your ordinary house insurance will cover concerns that happen in the course of running your company. You might be held accountable for damages sustained on your property during business hours.
This coverage may be obtained as part of a business owner’s policy or as a rider to your current homeowner’s insurance policy.
Additional Security Measures for Your Company
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.