Toy Store Insurance Coverage (2021)

Toy stores have advanced not only in the US but all around the world due to their improving quality, trend flexibility, and the excitement they bring about from customers of different ages. However, just like any other business, this industry has its own risks. Toy stores actually rely on the standing of items made by different manufacturers. Since toy shop owners can only guarantee the products as their own, this makes it extra significant for toy stores to obtain a crafted Toy Store Insurance.

Toy Store Business Insurance

Business insurance is intended to secure an entrepreneur’s monetary resources and is undoubtedly a fundamental investment for a retail business like toy stores. This is a group of policies that include a small business liability insurance which covers the common risks this retail business faces. The most common incidents are:

1. Damage to a rented commercial property(where the store is situated).
2. A customer’s personal property damage while being inside the toy retail store.
3. Slip and fall incident of a customer or any third-party inside the store.
4. When a sold item from the toy store caused injury to the customer and the latter asks for a reimbursement of medical costs arising from the injury.

But What Makes Entrepreneurs Entrepreneurial?

While many have quit in the retail industry due to its inherent liability in the retail-consumer space, we believe that you are an entrepreneur for a reason. “A Problem Well-Defined is a Problem Half-Solved”. The above-listed problems show countless of risks you can ever imagine in getting sued, bankrupt, and floating like an empty paper boat. You may not be able to see all these risks yet, but this Toy Store Insurance package can already provide a life-saving coverage for your business operations:

1. General Liability Insurance – covers for injuries and property damages to third parties faced by the toy store business owner. This stand-alone policy can save you from financial damage when accidents happen in the store causing damage or harm to customers or their personal property. The above-mentioned incidents can be covered by the general liability insurance.
2. Product Liability Insurance – covers business owners from third-party claims arising from any injury or accident specifically caused by a product that was sold or produced by the toy store. This also includes coverage for lawsuits and medical costs. We advise to discuss this with your agent if this is included in your general liability insurance, so you don’t have to purchase this policy separately. 
3. Commercial Auto – is top priority for your toy store operations especially with all the transport of items from one place to another. It is important to disclose the radius of travel for each commercial vehicle to ensure claims will be covered when incidents happen in between distances. You may also need an ‘any-driver’ coverage and not specifically for one person should there be multiple drivers using different vehicles. Your commercial auto insurance will cover physical damage for collision, liability insurance for bodily injury, third-party physical damage, uninsured motorist and underinsured motorist. Some insurance providers include towing and labor, rental reimbursement, and auto loan or lease gap coverage but it’s best to discuss this with your agent as you may garner discounts should you exclude these coverages. 
4. Workers compensation – will cover your employees’ medical costs, loss wages during a recovery of an injury, or during a disability period, it also has death benefits should the job-related incident result in death. 

Expert’s Tip: There are different class codes for each job description, which means that the monthly premium rate of an accounting staff is lower than that of your packer/lifter. While these may sound overwhelming with the number of employees in a toy store, an extremely thorough agent will require you to provide: the number of employees doing different types of job, each type of job’s total annual salary, and if they travel abroad or to different states.

Be willing and patient to provide these details. This ensures everyone is covered accordingly and the amount you pay for this policy will get its value. You can also be covered as an owner, workers compensation insurance has way more benefits than that of your medical insurance but the exposure of the incident must be work-related.

Naturally, the main concern of most business owners about insurance is its cost. While insurance premiums vary depending on the size of your operations, claims or accidents record, and the number of employees, the insurance costs generally outweigh the overall financial damage of paying for accidents out of pocket. Carefully consider what your business needs and identify the possible and known risks so that obtaining an insurance policy can be seamless and its cost worth every cent.