Retail stores play a huge role in our daily lives and provide us with everything we need—and want—to live comfortable lives. As a business owner who operates a retail store, you are exposed to certain risks that could lead to unrecoverable financial setbacks, such as lawsuits and property damage. Fortunately, there's a way to protect yourself against unexpected expenses so you can build on your business success year after year.
Call Morison Insurance and let us know more about your unique business so we can seek out your ideal retail insurance. Ontario brokers on our team can help you get the financial protection and the peace of mind that comes with knowing you have the necessary protection against unexpected financial losses for your retail business, no matter the type of products you sell.
Ontario store insurance, otherwise known as retail or shop insurance, is a type of business insurance policy designed to meet the needs of retail store owners in general and each individual policyholder specifically with a combination of property and liability insurance coverage that is tailored to the unique insurance needs of the business. Store insurance offers protection against financial losses by providing insurance compensation for expenses such as repair, replacement, damage restoration, theft and vandalism in the event of an insured disaster or incident, along with legal defence fees, settlement costs and other costs related to liability, up to the limits listed on your Ontario store insurance policy.
Anyone who owns or is looking to start a retail business and has a storefront needs the financial protection of a store insurance policy. It's necessary for any business that develops, manufactures, and/or sells products of any kind. That includes retail businesses such as:
Regardless of the type of retail business you operate, our experienced brokers at Morison Insurance will consult with you to learn more about your business so we can recommend the right Ontario store insurance coverages and limits for you with a personalized store insurance quote.
Small business insurance policies vary significantly because no two businesses are exactly alike, and insurance coverage needs to address the particular risk exposures of the policyholder based on factors such as where the business is located, how it is operated, and many others, so it’s hard to tell you exactly what will be included in your retail shop insurance without learning more about your business needs and operations.
That being said, certain types of insurance coverages are necessary for almost any business, such as commercial general liability and business property insurance. Here is more information on the types of coverage options you may need or want on your Ontario store insurance policy for protection against financial setbacks.
Commercial general liability insurance is a critical business liability insurance coverage that provides funds to cover expenses such as legal mediation, legal defence costs, settlement costs and more in liability cases where the policyholder has been accused of causing third-party property damage or third-party bodily injuries.
For example, if a customer strolled into your store and was seriously injured when they tripped over a box of merchandise that was left in an aisle, they could choose to sue you to recover the cost of their medical bills, their lost income during recovery and other expenses. The commercial general liability portion of your Ontario store insurance policy would prompt your insurance carrier to provide funds to cover the costs incurred during litigation, as well as settlement costs should you be found liable for causing bodily injury or property damage.
Third-party liability claims against businesses can be very costly, and there's no realistic way to prevent them. Even if you weren't responsible for causing damage or injury, you could still be forced to incur the cost of defending yourself in court, so it's very important to have adequate commercial general liability coverage as part of your Ontario store insurance.
As a store owner, you have physical assets that could be damaged, lost or destroyed by factors such as fire, natural disasters, theft and more. That's perfectly evident if you have a brick-and-mortar store location, but online store owners, even drop-shippers who don't store any merchandise at their properties, still need commercial property insurance so they can replace essential business equipment such as their computers in the event of a disaster. Commercial property coverage on an Ontario store insurance policy typically applies to perils such as fire, natural disasters, theft and vandalism up to the coverage limits on the policy.
It's worth noting that certain types of water damage are often not included, such as overland flooding and sewer backups, so you may need an endorsement for water damage in your store insurance policy if your business is located near a body of water that is prone to flooding or has done so in the past.
Do you develop or manufacture any of the products you sell, or sell products under your own brand that another company manufactures? If so, product liability insurance is a necessary addition to your retail insurance policy.
Ontario business owners who sell their own brand of products, whether they directly manufacture or fabricate them or simply apply their brand to an already-manufactured product, need protection against financial setbacks caused by allegations that their product caused third-party bodily injury or property damage. Product liability can also apply to issues such as incorrect labels. For example, if you bake, package and sell cookies at your store and fail to include an allergen warning for traces of nuts, a customer could suffer an allergic reaction and sue your business for inaccurate labelling. In that type of situation, if you have the addition of product liability coverage in your store insurance, your insurance provider would supply the necessary funds up to your policy limit, so you could avoid paying legal fees and settlement costs out of pocket.
All retail stores conduct at least some business online and need to store or transmit information electronically. If a business stores sensitive information such as credit card numbers and other personal or financial details, they are obligated to protect that information from cybercriminals. Cyber risk and data breach coverage on your Ontario store insurance policy applies to your legal defence costs and settlement expenses should you be targeted and experience a cyber breach and sued by your customers for compromising their information, but it may also apply to other costs such as ransom payments to recover stolen information.
No one wants to consider that the employees they trust to operate their business could be dishonest or steal from them, but it does happen. Also known as commercial crime insurance, having employee dishonesty coverage as part of your store insurance will provide you with financial protection against losses resulting from theft or fraud committed by the people you employ.
However, store insurance policyholders should note that it doesn't cover regular theft by people from outside of your organization, which is a part of commercial general liability coverage. As an example, if one of your employees has been stealing small amounts of money from the till or your bank deposits for a long time, the total amount taken could be well into the thousands or even tens of thousands by the time they are discovered. Your employee dishonesty coverage will reimburse you for the money taken, up to your particular Ontario store insurance coverage limits.
If your store is damaged accidentally or maliciously, the process of damage restoration isn't going to happen overnight. Depending on the nature and extent of the damage, it could easily be weeks or even months before you've been able to get the property back in usable condition again. While your commercial property coverage will compensate you for the restoration, it won't compensate you for the loss of income while your business is closed. At the same time, you'll have to continue handling major expenses such as employee payroll and lease payments. The solution is to make sure you have business interruption insurance on your Ontario store insurance policy.
With this type of insurance included with retail insurance, Ontario store owners get the financial assistance necessary to recoup any loss of income and take care of other ongoing expenses, such as employee wages and operational costs. That means you’ll be able to get back on your feet as soon as possible and get your bottom line in the black. It's worth noting that business interruption coverage does not typically apply to government-mandated closures for infectious disease control, so be sure to read over your store insurance policy carefully and speak with your insurance broker about what may or may not be covered by business interruption insurance.
One of the only legally required insurances Ontario residents have is auto insurance, and that’s no exception for store owners who use vehicles for business purposes. Whether it’s for deliveries, transporting employees, or other business activities, having commercial auto insurance as part of your store insurance policy will ensure your vehicle usage is properly covered.
Commercial auto insurance will cover you in the event of an accident that causes property damage or bodily injury and results in claims for repair costs, medical expenses, and legal fees. Whether it’s a personal vehicle you use for work purposes or a company-branded vehicle, having an auto policy added to your store insurance package not only ensures you meet legal requirements but also provides you with protection should your vehicle be involved in an accident.
You work your hardest to please your customers and have a proven track record of quality service in your community. But all it can take is one bad day for your business reputation to go down the drain. If your store insurance policy includes negative publicity insurance, also known as reputation insurance, your business will be protected from the financial losses arising from reputation-damaging events, and it would provide the funds needed to help manage the impact of the resulting crisis from the adverse publicity may have on your bottom line.
For example, if your business was the target of a cyber attack, and your client’s confidential information was exposed, you would be compensated for paying for public relations consultants and crisis communication experts to come in and mitigate the damage if you had negative publicity coverage as part of your retail insurance. Ontario businesses can also be covered for the costs of fulfilling legal obligations, such as notifying any impacted customers and the necessary regulatory bodies of any data breaches. Although this policy addition may be out of reach for smaller companies, larger companies can benefit from having this coverage in their store insurance policy.
Ontario insurance experts will tell you that just because you have insurance, it doesn’t mean it will cover every possible event or scenario. This holds true for store insurance. For example, your business won’t be covered if there is a government-mandated closure for infectious disease control. Or, if your store sells high-value items that are stolen or damaged, depending on the coverage limits in your store insurance policy, you may not be properly compensated for those items.
This is why it is critical for you to communicate your business insurance needs and details of your business operations with your insurance broker. This will ensure you get more comprehensive store insurance coverage for a wide range of scenarios, so in the event of an unexpected loss, damage, or liability claim, you have the insurance protection you need.
The type of insurance endorsements you should get with your policy will depend on your unique business needs. For example, if you provide professional or legal advice, you may want to consider getting additional coverage for errors and omissions (E&O) insurance, or if your business serves alcohol, you will need liquor liability insurance coverage.
Some common policy additions include:
Your business details will impact which policy inclusions you should consider for retail insurance. Ontario insurance brokers will discuss what additional insurance requirements you may need to have the proper financial protection in your store insurance policy.
No, it's not. In Canada, most types of business insurance are not mandatory, with the clear exception of commercial auto insurance. But just because the government does not require you to have Ontario store insurance coverage, that doesn't mean you can realistically operate a retail business without insurance.
Many business owners think to themselves, "I'll just be extra careful," or "I have a great relationship with my customers and employees, so I'll be fine," but those aren't realistic expectations in regard to store insurance or any other type of insurance. Nobody can prevent every mistake or avoid every dishonest person—and of course, plenty of things that could go wrong are totally out of your control.
If a neighbouring building goes up in flames in the middle of the night, your business will likely be heavily impacted, if not destroyed. Most business owners can't afford to pay out of pocket for the astronomical costs associated with fire damage restoration or an expensive and time-consuming lawsuit, which would have been covered under a store insurance plan. There's no sense in putting yourself through the stress and agony of a massive financial burden when you could have the protection afforded by the right Ontario store insurance for a reasonable cost.
Most business owners want to know upfront how much business insurance costs, and that's understandable— you want to keep operating costs down, and insurance policies such as store insurance can have a big impact on it. However, it's impossible to give an accurate quote without knowing much more about your particular business and your risk exposures.
Many variables can affect the cost of your insurance premiums. When you apply for Ontario store insurance, the insurance provider completes a risk assessment to determine which risks are most likely to occur to your business. Based on that assessment, they choose how to provide you with a store insurance quote.
Some of the factors they evaluate for store insurance are:
There is no one-size-fits-all store insurance coverage. So when looking for retail insurance, Ontario business owners need to sit down and have a good discussion with their insurance broker about their business’ unique needs and insurance requirements.
Ontario residents can often find navigating the insurance industry confusing, and even with a trusted broker, they can wonder if they have the right amount of policy coverage for their store insurance. However, there are several ways they can determine if they have the proper amount of coverage, which include:
And, of course, you can also discuss your store insurance needs with your Morison Insurance broker.
Start by contacting the expert insurance brokers at Morison Insurance. Our reliable team has the skill and experience to find the right combination of Ontario store insurance coverage for your unique business so you can run your store as you see fit without worrying about how you'll afford to handle it if something goes wrong. At Morison Insurance, we work for our clients, not for the insurance companies. That means you can trust us to prioritize your best interests and have total peace of mind knowing you have adequate business insurance protection tailored to your specific needs. Call our knowledgeable brokers today at 1-800-463-8074 for a personalized quote for store insurance or ask any questions about the insurance your business needs to thrive.
