Company insurance is intended to safeguard the financial assets of a firm owner and is a necessary investment for an ebay business.
This article will discuss the primary insurance coverage for eBay firms, general liability insurance, as well as additional products that are appropriate for this industry.
Musical Instrument 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.
COMMON SITUATIONS FOR WHICH A MUSICAL INSTRUMENT STORE MAY HAVE GENERAL LIABILITY INSURANCE
Example 1: A client in your business goes for a guitar to have a closer look and pulls a shelf down on top of himself, injuring himself and requesting that you pay for his medical care. His medical expenditures would be covered by general liability insurance.
Example 2: After slipping and falling on a wet floor in your bathroom, a client chooses to sue your company for damages because you failed to post a warning notice. Your legal defence and any needed settlement would be covered by general liability insurance.
Example 3: A local rival sues you, alleging that your most recent marketing effort slandered her company. While you disagree with the allegation, you are aware that you need the services of an attorney to safeguard your firm. Your legal defence and any needed settlement would be covered by general liability insurance.
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
Musical instrument retailers 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:
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 Musical Instrument 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 musical instrument retailers should have are as follows:
Insurance for Commercial Property
You made a significant financial commitment to supply your business with a variety of musical instruments and accessories. Commercial property insurance would cover the expense of repairing or replacing your business-related property in the case of a fire, theft, or natural catastrophe. This covers structural damage to your facility as well as harm to the items and supplies stored within.
Insurance for Workers’ Compensation
Workers’ compensation insurance is required in most states for both part-time and full-time employees. This coverage covers your workers if they are hurt at work or get sick as a result of a workplace accident. It covers not only an employee’s medical expenditures and lost pay if they need time off to recuperate, but also any disability or death benefits resulting from a workplace accident.
Coverage Options for Some Musical Instrument Stores
In addition to the insurance listed above, your musical instrument shop may need other forms of coverage based on particular features 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 Product Liability
While you work hard to offer high-quality musical instruments and assure client contentment with every transaction, there’s always the possibility that one of your goods harmed them. In the case of a lawsuit, your legal expenses and any needed settlement would be covered by product liability insurance.
Umbrella Insurance for Businesses
While most claims are covered by your general liability insurance policy, certain incidents or lawsuits may be so severe that they threaten to deplete the limits of your main coverage. Commercial umbrella insurance protects you from having to pay for legal expenses and awarded damages that exceed the limits of your main policy out of pocket.
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.