Owning a store is probably the “picture” of the American dream. Renting a storefront frequently relieves the store owner from worries about the building, parking lot and similar issues. But check your lease. You may be contractually responsible, requiring a different approach with your business insurance.
At this point, we’re going to focus on the physical items in a rented retail space. We’ll save Liability concerns and building ownership for another blog.
The most obvious “thing” to insure to a store owner is the inventory…the lifeblood of the business. But other “things” are important as well. The cash register, computer equipment, copier, postage meter, desks, shelving, and displays would all need replaced as well.
Who owns dividing walls, interior doors, carpeting, storage racks, and display shelving – tenant or landlord? In the event of a fire or other destruction, who is responsible? Check your lease for those dividing lines.
A cooler or freezer case may be offered “free’ in exchange for displaying a particular product line. But the store owner may actually be required to insure it.
Loss of Income coverage is exceptionally important. This can pay on-going expenses and replace the normal profit to the business owner after a covered loss. It can even provide funds to continue paying experienced employees to stand by, awaiting the store’s re-opening. Otherwise, that talent is lost to competitors. And the business owner is faced with hiring all-new help after rebuilding.
If you have questions, visit our website’s Consumer Info section (www.wrins.com), or contact us.