Company insurance is intended to safeguard the financial assets of a business owner and is a vital investment for a bait and tackle store.
This article will discuss the primary insurance coverage for bait and tackle stores, general liability insurance, as well as additional products that are appropriate for this industry.
Bait and Tackle Shops 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.
Situations That A Bait And Tackle Shop’s General Liability Insurance May Cover
Example 1: A client going through your store’s aisles fails to see the damp floor and falls. The accident breaks his arm and fractures his hip, resulting in costly medical expenditures. He insists that your company pay for his medical treatment. His therapy will most likely be covered by your general liability insurance.
Example 2: In a haste to complete a huge order, one of your workers approaches a corner with a dolly and collides with a client. The client falls, fractures his wrist, and launches a lawsuit against your company. Your general liability insurance coverage will cover the expense of your legal defence, as well as the cost of paying a settlement if it is decided to be in your best interest.
Example 3: You decide to employ a marketing team to develop a marketing plan to help your company compete. The marketers are a touch too harsh in their criticism of one of your rivals, prompting the competition to initiate a libel action. Your general liability insurance will cover your legal expenses if you are accused of libel and/or slander.
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 bait and tackle business in the United States pays between $400 and $1,100 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 Bait and Tackle Shops
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 bait and tackle stores should have include:
Insurance for Product Liability
A product liability insurance coverage protects you against losses caused by a product you sell. If a client determines that your fishing supplies were the cause of his injuries and files a lawsuit, your product liability insurance will cover the expense of your legal bills as well as any payment you end up paying to settle the case out of court.
Insurance for Workers’ Compensation
If you have employees, your state most certainly has rules requiring you to carry workers’ compensation insurance. Your workers’ compensation coverage will assist you safeguard your employees. If one of them is injured while doing a job-related duty, the insurance will cover their medical expenses as well as missed income if they are forced to miss work.
Coverage Options for Bait and Tackle Stores
In addition to the insurance listed above, your bait and tackle 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.
Insurance for Commercial Vehicles
Commercial car insurance is required if your bait and tackle shop has one or more corporate vehicles. If you or an employee is involved in an accident while driving a business car, commercial auto insurance protects you. It will contribute to the cost of repairing or replacing the corporate car as well as any other vehicles that have been damaged. It will also assist cover the payment of medical expenses for you, your staff, and anybody else wounded in the accident.
Umbrella Insurance for Businesses
When the limitations of a general liability insurance coverage are reached, a business umbrella insurance policy is meant to take up the slack. This may occur under specific circumstances, such as if your company loses a major case and is forced to pay substantial damages. The umbrella coverage takes over whenever the limitations of your general liability insurance are reached.
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.