Operating a retail business could include a number of different products, but in general, retail operations share similar liability exposures. The traffic coming through the doors, the employees serving customers, and the exchange of financial information all present a number of risks, so the insurance for retail businesses should have more than one coverage application. Many companies choose to start with a basic general liability policy.
General Liability Coverages
There are several key areas of general liability policy.
- Customer Injuries. If a delivery person or a customer has an accident while on your property, your company is liable. Injuries that are sustained could result in medical bills and lawsuits, so insurance can help pay for medical expenses, legal costs, and settlements
- Customer Property Damage. There is potential for an accident to cause damage to a customer’s property, and general liability can cover this too. This also covers legal damages if the customer brings a suit.
- Damage by Product. If a product you sold causes an injury or damage to a consumer or their property, this insurance could help with medical bills and legal fees.
- Advertising Injury. When you advertise your business, you may be sued for copyright infringement or reputational harm. The general liability policy goes into effect with these claims.
The right insurance policy will be the best defense against liability claims with your retail business.