Furniture Store Business Insurance

Company insurance is intended to safeguard the financial assets of a business owner and is a vital investment for a furniture shop.

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

Furniture 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.

Situations That A Furniture Store’s General Liability Insurance May Cover

Example 1: One of your workers is delivering a fresh shipment of couches to the showroom floor when he loses control of the dolly and strikes a client in the back. The customer trips and falls, fracturing her wrist. She requests that your company pay for her medical care. This is most likely covered by your general liability insurance.

Example 2: A customer’s youngster is playing with her brother on the bunk beds in your business when she trips and falls to the floor. She fractures her leg and needs medical treatment. The girl’s father sues your company for monetary damages. Your general liability insurance coverage would cover the expense of your legal defence, including any payout if you settle out of court.

Example 3: The owner of a competitive furniture business accuses you of defamation and employs a lawyer to initiate a lawsuit against you. While you dispute that you have slandered his company, you are aware that you must employ an attorney to defend your company from the lawsuit. Your general liability insurance will cover your legal fees when defending yourself against slander, libel, and other charges. It will also cover the cost of a settlement if one is required.

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 American furniture shop pays between $400 and $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 Furniture 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 furniture shops should have are as follows:

Insurance for Workers’ Compensation

There is always the potential that one of your workers may get injured while doing a job-related duty. If this occurs, your workers’ compensation coverage will cover medical care for work-related injuries. It will also reimburse part of the employee’s missed salary if they are unable to work while healing. Most states require companies to carry workers’ compensation insurance, so having one not only protects your employees, but also assures that you satisfy your state’s legal obligations.

Insurance for Commercial Property

Your furniture inventory serves as the cornerstone of your company. If you lose a significant percentage of your inventory, or all of it, you may have difficulty replacing it. Unexpected catastrophes, such as fires or big storms, might occur and inflict significant damage. You may collect money from your insurer to replace inventory and other business property that was lost by a covered incident, such as a fire, if you have commercial property insurance.

Coverage Options for Some Furniture Stores

In addition to the policies listed above, your furniture shop 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 Insurance for Businesses

If your general liability insurance limits are surpassed, such as if you lose a case and are forced to pay large sums of money, an umbrella policy will give further protection. Without an umbrella policy, your company would be liable for losses that exceeded the limits of its general liability insurance. However, with an umbrella policy, the additional coverage would kick in when the general liability insurance limitations are reached, allowing you to avoid having to pay for the excess damages out of pocket.

Insurance for Commercial Vehicles

Commercial car insurance is essential for any vehicle used mainly for business purposes. For example, if you have a furniture delivery van, you should carry commercial auto. If your car is involved in an accident, your coverage will cover the damages. If your driver was at fault in the collision, your insurance will cover the damages to other cars as well as medical treatment for the wounded. If you use a vehicle for business, your state most certainly requires you to obtain commercial auto insurance.

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.