Clothing Shop Insurance

A clothing shop insurance policy is designed to cover the many risks you may encounter, including liability claims and loss or damage to your property. Here are the coverages that most clothing shop insurance policies include:

• Commercial General Liability (CGL) Insurance: Also known as “slip-and-fall” insurance, CGL covers clothing store owners against the common liable risks. If a third party is injured, or their property is damaged on your premises, they could hold you liable for loss. Let’s say it’s a rainy day, and a customer trips and falls while entering your store. In the fall, they drop their expensive phone which breaks and they injure their hip. In this case, CGL could cover third-party medical bills and the cost to repair or replace their phone.
  • Product Liability Insurance: CGL may include product liability coverage to protect you against third-party injuries or property damage that are caused by defective products you sell.  For example, a customer buys a bright red dress from your store. A week later they complain that after wearing it the dye has stained their skin and their expensive white handbag. They sue you for damages. Product liability insurance may cover the costs to replace or repair their handbag and any other related costs.

• Commercial Property Insurance: Commercial property insurance protects your premises and your contents (such as business equipment and inventory) from certain risks, like fire, theft, and vandalism. Suppose your store is broken into while you take a week off to go on vacation. When you return, a significant portion of your inventory is missing from the stock room and certain equipment, such as your cash register, has been damaged during the theft. Commercial property damage could cover the costs to replace stolen inventory, repair or replace broken equipment, and cover the additional costs to restore security measures.
  • Business Interruption Coverage: This coverage is often included under a commercial property insurance policy. Business interruption insurance can provide financial reimbursement for lost income following an insured event. For example, if you had to close your business for a week for repairs following an insurable loss such as a burglary. Business interruption may cover your estimated lost income (based on previous financial data).

• Cyber Liability Insurance: Unfortunately, cyber-attacks and other data breaches are becoming more common. Cyber liability insurance is an important coverage that protects your liability against attacks on personal data that’s stored electronically in your network. For example, financial data is stored in a point-of-sale (POS) system. If you’re affected by a cyber-attack, cyber liability insurance can cover legal fees, third-party notification costs and the costs to restore data protection.

• Legal Expense Insurance: This insurance provides legal coverage in situations where you’re not already covered for legal assistance from another insurance policy (for example, legal assistance needed for an employee injury or property damage to your property). With this coverage, you can be reimbursed for the costs of legal advice or retaining legal representation.

• Commercial Crime Insurance: Also commonly known as fidelity insurance, commercial crime insurance protects business owners from a loss of funds (e.g., cash) caused by internal theft, forgery, counterfeiting or impersonation. With this coverage, you can be reimbursed for the losses caused by criminal actions of employees and third parties, including customers.