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Company insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for an art supply shop.

Art Supply Stores

This article will discuss the primary insurance coverage for art supply shops, general liability insurance, as well as additional policies that are appropriate for this industry.

Art Supply Stores Need 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.


Example 1: A member of your team inadvertently pushes into a customer, leading them to tumble into a stack of items. The expense of the customer’s injuries will most likely be covered by general liability insurance.

Example 2: You deliver a faulty set of paints to a client, and the product destroys a valuable business project they were working on. If the consumer can demonstrate a loss of revenue, general liability insurance will most likely support their claims against you.

Example 3: A client enrols in a sculpting class at your business and purchases a full set of pricey materials to assist them in completing the course. Their tools are damaged throughout the lesson, and the consumer blames the incorrect sculptural skills taught in the workshop. General liability insurance will cover the cost of the tools as well as the expense of defending the claim.

Example 4: You want to launch your shop as part of a franchise rather than as a standalone business. Having enough general liability insurance might assist assure your acceptance by the bigger parent firm.

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

Art supply shops in the United States typically pay between $300 and $600 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:



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 Art Supply 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 art supply shops should have are listed below.

Insurance for Commercial Property

Commercial property insurance protects not only the structure in which you are situated, but also the goods housed inside it. If a covered incident, such as severe weather or vandalism, destroys the building or its contents, you may recover your losses via commercial property insurance. Inventory at an art supply business is readily destroyed, and depending on the worth of the items, it may be costly to replace without sufficient insurance coverage.

Insurance for Workers’ Compensation

Workers’ compensation insurance will protect your staff if they are injured on the job while working at your art supply shop. While an art supply shop may not be as hazardous as many other companies, your employees may be handling hazardous chemicals or instruments all day or filling high shelves with large boxes.

Coverage for Professional Liability

Professional liability insurance protects you in the event that you or your workers make an error on the job. For example, a staff may incorrectly tell a client that a certain product would not irritate their skin condition, despite the fact that it does. Professional liability insurance can assist you in fighting the claim or settling the customer’s medical expenditures.

Types of Insurance That Art Supply Stores May Require

In addition to the insurance listed above, your art supply business may need other forms of coverage based on particular elements of your operations. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.

Umbrella Liability Insurance for Businesses

This kind of insurance provides additional protection in the event of a very costly liability claim. If you decide to defend a case and it goes on for months, you’ll need extra coverage to pay attorney and court expenses.

In addition, commercial liability insurance may assist you in restoring your image in the face of public scrutiny. If you offer materials to professional artists, this kind of insurance is strongly suggested.

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.