General Liability Insurance For Retailers

//General Liability Insurance For Retailers

General Liability Insurance for Retailers 

A customer walks into your store, slips and falls—the next thing you know, you’re served with a lawsuit. General liability insurance may cover most of the costs associated with this lawsuit.

One of your employees is working on-site and accidentally damages one of the mirrors while moving a clothing rack to make more room for customers.

These are just some examples of things that do happen, where having the general liability insurance could help. This type of insurance protection may minimize the costs associated.

What Is General Liability Insurance?

Commercial General liability insurance (CGL) can also referred to as commercial insurance or liability insurance. In some cases, it may also be referred to as small business insurance however that is a pretty broad term—in this article, we will use general liability insurance.

General liability insurance is a commercial business coverage policy—it’s the most basic insurance that a business should own.

General liability insurance is the basic type of protection a business must own. It covers any costs associated with lawsuits brought to your company along with the payout of any losses. More specifically, general liability insurance may protect your business from the following:

  • Third-party lawsuits
    • Bodily Injury (e.g. an employee or a customer is working on a customer’s home and injures themselves onsite)
    • Property Damage (e.g. a customer is walking through their yard while you’re working on their property. They trip and fall on a tool that they didn’t see, injuring themselves—they decide to file a lawsuit against you).

To learn more about how general liability insurance can protect your retail business, you can easily get a free quote online. Zensurance is making commercial business insurance quick and easy!

 

What Is Defined as a Retailer?

A retailer (also referred to as a merchant) is an business that sells goods directly to consumers. Whether it be food, clothing, vehicles or appliances, if you sell directly to the customer with the goal to earn a profit, you are by definition a retailer.

Here’s a list of the different types of retailers—it’s good to determine which one your business lies under before speaking to an insurance broker or provider!

  • Department Store
    • Sells products at a variety of price points.
    • Offers a wide range of products and typically appear as a large collection of small retail collections (e.g. The Bay which carries Top Shop, Godiva, Tom Ford etc.)
    • Provides the convenience of a one-stop-shop offered to customers.
  • Supermarkets
    • Concentrates on selling food and household commodities.
    • Recently, they have diversified by suppling products for the home, fashion and electrical products as well. (e.g. PC Superstore)
    • Supermarkets have significant buying power (purchasing in large bulk from manufacturers) and therefore often retails their goods at low prices.
  • Warehouse retailers
    • This type of retailer is usually physically located in sparse areas, to lower rental costs.
    • The low-rent enables these type of retailers to stock, display and retail a large variety of products are very competitive prices.
    • An example of this type of retailer in Canada is Wholesale Club.
  • E-tailer
    • Sells online, allowing consumers to make purchases online.
    • Can sell strictly online however most brick or mortar/physical retailers offer e-tailing (e-commerce) as an additional option to gaining access to their products.
    • Large cost-savings as overhead for owning a physical space is not necessary, allowing for more competitive pricing.
    • Can supply a wider geographic customer base.
    • While this isn’t a Canadian born site, Wayfair has become a very popular online solution for people interested in home furnishings, decor and tableware.
  • Speciality Retailers
    • Offer specialization in specific industries or products, offering niche knowledge coupled with a high level of service.
    • A great example is Wheels of Bloor, which caters to customers who are interested in high-end road bikes and accessories.
  • Convenience Retailer
    • Typically located in residential areas, offering a range of products (e.g. lottery tickets, cigarettes, candy, gum etc.) at premium prices due to the convenience.
    • Many of them can be built into gas stations.
    • A well-known convenience retailer is Macs.
  • Discount Retailer
    • Offers a variety of discounted products, typically low prices by reselling end-of-line or returned goods.
    • An example of a discount retailer in Canada is Giant Tiger.

General liability insurance for retailers is critical and may lead to cost-savings in the long-term. Get your FREE quote online

At Zensurance, we make getting a commercial business  insurance quote easy. Our hassle-free, easy to use and no-jargon tool walks you through the entire process. 

 

Retailers should have general liability insurance—stay protected!

Retailers should have general liability insurance—stay protected!

 

What Is Covered Under General Liability Insurance for Retailers? 

General liability insurance may cover associated with lawsuits brought to your retail business along with the payout of any losses. More specifically, general liability insurance may protect your business from the following:

  • Third-party lawsuits
    • bodily injury (e.g. an employee or a customer is working on a customer’s home and injures themselves onsite)
    • property damage (e.g. a customer is walking through their yard while you’re working on their property. They trip and fall on a tool that they didn’t see, injuring themselves—they decide to file a lawsuit against you).

What Is Not Covered Under General Liability  Insurance For Retailers? 

There are several types of insurance policies that could be coupled with professional liability insurance to protect you as an retailer.

Other commonly considered business insurance policies that retailers may consider are the following:

  • Professional Liability Insurance (Errors & Omissions Insurance) 
    This type of coverage is meant to protect you by covering the costs associated with any errors in the services that you have provided. Along with retailers, this also applies to accountants, lawyers, brokers and financial advisors.
  • Cyber Insurance
    If your customer information is compromised and their personal information is used against them (e.g. fraud activity where their I.D. is used), your customer can sue you for the cost of the damages associated. The added protection is a smart move, especially since the number of cyber attacks continue to grow, costing businesses lucrative amounts of money. A great resource you should read is “Why Do Hackers Target Smaller Businesses?”. It covers the reasons why smaller businesses are vulnerable to cyber breaches.
  • Business Interruption Insurance 
    If you rent an office for your business and a flood destroys your work space, business interruption insurance may cover the costs associated with loss of income due to operations put to a halt.
  • Property Insurance
    Any property that you own which is used for your business which is damaged or stolen may be covered. (e.g. One of your employees accidentally damages a mannequin while working on a store display over night).
  • Legal expense insurance
    This type of insurance policy may cover legal costs allotted to defend your legal rights. This is especially targeted toward some claims relating to employment disputes, legal defence, contract disputes & debt recovery, statutory license protection, property protection, bodily injury and tax protection. (e.g. a former employee files a lawsuit against your company for wrongful dismissal. This policy will cover the cost of legal expenses).
General liability insurance is the type of protection you require if you own a bakery.

General liability insurance is the type of protection you require if you own a bakery.

 

How Much Does General Liability Insurance For Retailers Cost? 

General liability insurance for retailers can vary from business-to-business. Typically, retailers require a minimum of $3 million coverage per policy period. To get a free quote for general liability insurance as a retailer, Zensurance offers an easy-to-use, no-jargon online tool—you could get an estimated quote in under 5 minutes!

Are you a retailer looking for general liability insurance policy to protect your business? Get your FREE quote online

At Zensurance, we make getting a commercial business  insurance quote easy. Our hassle-free, easy to use and no-jargon tool walks you through the entire process. 

What Kind Of Information Do I Need To Get a Quote for General Liability Insurance ? 

To save yourself some time, it is a good idea to do some digging and gather some pertinent company information before requesting a quote. Here’s a list of several types of information about your business that you’ll need to gather in preparation for your search:

  • Name of your company
  • Address and locations
  • Revenue—this is a driving factor for your policy premium
  • Your company structure—(i.e. sole proprietorship, corporation, partnership, joint venture or franchise?)
  • The date that your company was established
  • Is your company registered in Canada?
  • What is the number of employees working for your company?
  • Do your employ subcontractors?
  • Privacy—do you collect private information (e.g. customer data, financial information). What measures do you take to protect this information?

Some things that you should keep in mind when considering commercial general liability insurance for retailers:

  • Transparency—are your questions answered? Do you understand your policy? Do you understand the coverage? Make sure to ask as many questions as possible and get a feel of whether or not you feel your questions or answers or that you’re put at ease.
  • Management of your policy—when a broker isn’t available, is there a solution like a digital dashboard for you to use so that you look at your policy, see the type of coverage you have, understand special dates like renewal or see how many claims have been made to date.
  • Understanding the claim process—what does it looks like? What is required of you? what is the turnaround time?
  • Education—are you learning anything about your business through this insurance? Is there an opportunity for you to learn more about risks that your businesses faces? Does that mean you have the right coverage?
  • Responsiveness—if you have questions or concerns, how responsive is the insurance provider? What is their best method of communication? Is that similar to the kind of communication method you work with best?
  • Resources—is the insurance broker or provider able to offer you with insightful information that you could benefit or learn from? Ask them if they have a glossary of terms or a blog.
  • Do the brokers have experience working with other retailers? Experience in retail means they’ll be able to share better insight for coverage related to your industry.

 

Let’s Summarize What You’ve Learned About General Liability Insurance for Retailers? 

  • Commercial General liability insurance (CGL) can also referred to as commercial insurance or liability insurance. In some cases, it may also be referred to as small business insurance most insurance brokers and providers will call it general liability insurance.
  • General liability insurance is a commercial business coverage policy—it’s the most basic insurance that a business should own.
  • There are several types of retailers, but it’s important to note that overall, a retailer (or merchant) sells goods directly to consumers. Whether it be food, clothing, vehicles or appliances, if you sell directly to the customer with the goal to earn a profit, you are by definition a retailer.
  • While general liability insurance covers third-party damages, there are other common types of protection insurance policies that retailers should consider. They are property insurance, cyber insurance, professional liability (or errors & omissions) insurance, business interruption insurance and legal expense insurance.
  • To save you lots of time, you should prepare by gathering company information before exploring your general liability insurance options for a free quote. We have put together a list of the types of information that an insurance broker or provider will ask you to prepare the appropriate quote for you. If you’re ready to explore your options, you can get your free quote online through Zensurance! If you still have questions and would like to talk to someone about your options, you can call us toll free at +1-888-654-6030—we’re available 24/7!

 

List of Resources for Retailers in Canada 

National Associations 

Regulatory & Advocacy 

Publications 

Events, Expos and Conferences 

Research & Insights 

News & Media

Responsible Sourcing 

Tools and Solutions 

Are you a retailer looking for general liability insurance policy to protect your business? Get your FREE quote online

At Zensurance, we make getting a commercial business  insurance quote easy. Our hassle-free, easy to use and no-jargon tool walks you through the entire process. 

By |2018-07-09T17:10:53+00:00June 7th, 2018|Business|0 Comments