Retail Commercial Building Insurance 

Retail Business stock, contents and equipment Insurance

RETAIL Property Insurance 

As a business owners, store, shop or retail location whether you own, rent, or lease a building, a commercial property insurance coverage is very important. The following is a brief overview of the types of physical damage coverage you should consider having a store owner. 

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Building Insurance- If you own a building used commercially as a store, this policy is designed to provide coverage for a variety of perils such as fire, smoke, wind, vandalism, etc. 

Content Insurance - This portion of a commercial insurance policy protects your physical assets of your business including stock, equipment, software, furniture, machinery and tools. Perils include fire, water damage, vandalism or theft. 

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Crime Insurance - This portion of a commercial insurance policy protects you for actual money loss due to theft such as employee dishonesty.

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Business Interruption Insurance: If you need to temporarily shut down your business due to a claim, Tradition's business interruption insurance covers the income you have lost as a business during the time it takes to restore your operations back to what they would normally be. Commercial interruption insurance is essential to ensure that the bottom line of your business doesn't take a hit in the event of a insured loss. 

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Equipment Breakdown Insurance- This part of the insurance policy provides you as a business with coverage to repair or fix equipment that breaks down to mechanical or electrical malfunction.

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Water Protection Insurance- Sewer back-up and drain backup coverage is available for your building and commercial contents in the event of damage caused by the backing up or overflow of water from within sewers, sumps, septic tanks or drains. The coverage can also be extended for damage that fall into the peril of catastrophic flooding. 

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Earthquake Insurance 

Earthquake coverage is available upon request in the case of damage to your building or contents resulting from an earthquake.

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Frequently Asked RETAIL insurance Questions

Why Do I Need Retail Commercial Insurance?

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There are a variety of practical reasons why a retail business needs a commercial insurance policy. First of all, a commercial general policy covers the costs that can arise from property damage, liability lawsuits and defense costs in the event of an insured loss. Here are some additional reasons why Tradition Mutual Insurance often provides commercial insurance for retail business owners:

• Retail Business Insurance and a commercial lease - Many retailers and other startups look go rent or lease an office, showroom or retail space. In such cases, the landlord offering the lease typically will require that you have commercial general liability insurance (CGL.) This type of coverage protects your business against allegations of personal injury or property damage to a third party for which your business is found legally responsible. The business offering the lease wants to ensure you have coverage to ensure they are not drawn into a lawsuit.  

• Retail Business Insurance and Tradeshows - Business insurance is an important factor in networking and advertising your services or products. Many tradeshows, convention centres, farmer’s markets, job fairs and company gathering venues will request that a business provide proof of insurance for a certain minimum amount of coverage (typically a 2 million CGL policy limit or proof of tenant legal liability) before being permitted to have access to the event or location.

• Ontario customers requesting proof of insurance of Retailers- Ontario customers are becoming more and more savvy. Customers hear the horror stories through social media of a commercial business offers a service or product that didn’t have commercial insurance and the consumer was left footing the cost for physical damage or bodily injury. A certificate of liability insurance can make your business much more credible to Ontario consumers and includes coverage/liability limits, insurance company name, policy number, effective/expiry dates. 

Who Needs Retail Insurance?

All Ontario startups, stores, and retail businesses should have business insurance. Business insurance is critical for the long-term financial success of a business. If someone slips and falls at your business or even your home-based business, you could face a costly lawsuit. Many small business owners would agree that commercial insurance is essential for anyone who owns a business because it covers the costs that can arise from property damage, liability lawsuits and defense costs in the event of a loss.  Without business insurance, a business owner would have to cover the damages and legal costs made against their company out of pocket.  

Can I Do without Retail Insurance?

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If you are not required by a commercial landlord, municipality, city, consumer or another business to have a retail insurance policy, there are a few other questions that a retail business owner should consider to make sure you are 100% confident that you don’t need retail business insurance coverage.

• Does my retail business have enough money or assets available to rebuild my business if it should experience a catastrophic water, wind, fire or smoke claim.

• Does my retail business have enough money or assets available to defend itself to settle a liability lawsuit?

• In the event of an insured loss, how many months can my retail business go without business income while still meeting my financial obligations.

What is the Cost of Retail Insurance?

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As a retail business owner, you want to make sure you can find the cheapest and best commercial insurance option. Prioritizing costs is normal in this uncertain economic climate. If you are simply wanting 2 million commercial general liability (CGL) and nothing more, your policy could be around $500 a year. If you are wanting a package option including some retail business interruption coverage or content and equipment coverage, your policy could be closer to $725 a year. The type of commercial policy will cause these costs to vary. Depending on your retail business, a number of factors determine the cost of your business insurance such as:

• The industry that you work in in the retail sector

• The years of experience in that particular part of the retail industry

• Yearly revenue of your retail business or store. 

• Claims and insurance history

• Coverage limits and retail business insurance deductibles

• Risk exposure. ie policy such as the kind of stock, building type, territory etc.

• If you're bundling your policy with commercial auto insurance for your retail business

• If your quote factors in paying yearly or monthly   

To get a free, no-obligation quote to determine the cost of your retail business insurance, give Kyle Wijnands at Tradition Mutual Insurance a call at 519-393-3246 today.

Do I Need Business Insurance if I Work from Home?

A home insurance policy isn’t designed to provide commercial coverages for a home-based retail business unless it is specifically noted as an extension on the policy. Commercial liability and content coverage is typically excluded under a residential home insurance policy. If you own your own business, then it is necessary that you have this business insurance set up. If you simply work for a company at your own home, it is best to confirm that you are covered for liability and business contents by your employer’s business insurance policy. If you are the owner for a home-based business, I would recommend that you purchase commercial insurance.

• A home based business typically has office supplies, inventory and equipment. All three can be exposed to a variety of perils such as fire, smoke, water or theft.

• Products or services that you offer could cause bodily injury of property damage to a 3rd party. A CGL policy is designed to protect your home-based business in the event of an insured claim.

• A customer or visitor who comes on your home premises could be injured from falling ice, be bit by an animal or slip and fall on the premises. These are just a few incidents that could lead to a costly lawsuit that the home insurance policy is likely to be excluded.  

What Does Retail Insurance Cover my Business For?

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• Property insurance: Coverage built into a business insurance policy for damage to your business property including stock, equipment, contents and buildings.

• General Liability Insurance: Coverage built into a business insurance policy for bodily injury or property damage to a 3rd party.  

• Business Interruption Insurance: Coverage built into a business insurance policy for lost income due to physical loss or damage to your business assets as a result of an insured peril.

• Crime Insurance: This includes inside or outside robbery coverage, money and securities protection. A business can also chose to have employee disappearance, destruction and dishonesty coverage as well.

• Commercial additional agreements: Additional coverages built into the policy. Please contact Kyle Wijnands for a summary of these coverages.

• Equipment Breakdown Insurance, Flood Insurance, Earthquake Insurance and Sewer/Sump/Drain Backup Insurance.

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How Do I Know What Type of Retail Insurance is Needed?

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No two businesses are the same. Whether you are a toy store, thrift store, bakery, butcher or hardware store owner, your retail business is unique. When you call Kyle Wijnands, he will personally assess your business insurance needs to make sure you have a commercial insurance package that fits your unique needs. His thorough risk assessment of your business is free and there is no-obligation. Give him a call at 519-393-3246 today.

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What are the Different Types of Retail Insurance?

The following is a breakdown of each category if retail insurance types that Tradition Mutual can discuss the potential of setting up a policy. This list is not exhaustive so if you don't see your type of retail stores listed, give me a call today at 519-393-3246 and I will see what type of retail package Tradition Mutual can offer!  

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Retail Insurance 

• Retail business that offer hardware/installation away from the business location.

• Retail businesses that sell paint and wallpaper at their business location only.

• Retail business selling building materials and home improvement supplies.

• Retail businesses selling plumbing, heating, air conditioning supplies.

• Retail businesses selling china, crockery and glassware.

• Retail businesses with showrooms selling furniture, heavy appliances, lamps, lighting fixtures, second hand furniture.

• Retail businesses selling clothing including tailoring, alteration and repair.

• Retail businesses selling carpets, rugs, draperies, curtains, linen and linoleum tile

• Retail businesses operating as a department Store selling apparel, fabrics, furs, house furnishings, furniture, hardware, groceries or meats

• Retail businesses offering door to door consumer sales and services.

• Mail order houses and direct selling organizations.

• Supermarkets

• Bakeries

• Dairy product, confectionery, frozen food and ice cream shops

• Other food type stores selling consumable products.

• Farm implement and machinery stores that offer sales and service.

• Furrier shops that sells, repairs alters, clears or deals with clothing made of fur.

• Footwear shops.

• Clothing Accessory shops (Belts, Scarves, etc.)

• Family clothing, women’s wear and men’s wear.

• Art galleries, pictures, print and framing shops.

• Antique shops.

• Electronic Equipment (Computers, Home Entertainment, Office Machines)  -  Store only

• Records, Compact Discs and Tapes (Audio/Video) Sales and Rentals - Store Only

• Carpets, Rugs, Draperies, Curtains, Linen, Linoleum Tile - With installation

• Furniture, Heavy Appliances, Lamps, Lighting Fixtures, Second Hand Furniture - With installation

• Electronic Equipment (Computers, Home Entertainment, Office Machines)  - With Repair

• Drug Stores - Prescriptions, Toiletries, etc

• Bicycle Shops Including repair and assembly

• Garden & Lawn Centres and Light Farm Supplies

• Jewellery stores

• Variety Stores and Convenience Stores

• Shoe Repair, Boot Black, Hat Cleaning shops

• Book store

• Florist shops

• Stationery stores

• Pet Shops

• General Stores Country - Population Under 3,000

• Dry Goods, Fabrics, etc.

• Flea Market

• Handicraft, Hobby

• Instruments (Drafting, Scientific)

• Leather, Luggage

• Musical Instruments

• Religious book store and goods.

• Toy stores

• Cameras and Photography Supplies

• Limited Price Range Stores ( Dollar, Loonie)

• Coin, Stamp Dealers, Rare Books

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