Running a gift shop is a labor of love—whether it’s a quaint storefront in a tourist town, a family-run main street staple, or a boutique full of seasonal charm. Like any small retail operation, your gift shop faces particular risks, such as customer injuries and stolen merchandise. For the nearly 64,000 gift shops in the U.S., having the right insurance is crucial to keep your business stable year-round.
If you’ve never heard of a Business Owner’s Policy (BOP), it’s an innovative, affordable insurance solution for small to midsize businesses. Read the article below—which features expert insights from Pat Deering, insurance product manager for BOP and Workers’ Compensation at Central Insurance—to explore BOP policies and key additional coverages every gift shop owner should consider.
Why a Business Owner’s Policy (BOP) Is Great Shop Insurance
Most gift shops like yours do a vast majority of sales in person, with people stopping in and browsing. Having easily accessible stocks of inventory in the building and keeping the shop open to the public is very important, so having easy, straightforward building coverages available is critical to protecting your income flow.
According to Deering, a gift shop is a classic example of a BOP user, as it’s a relatively straightforward, often family-owned business with in-person sales and easily accessible inventory.
A BOP bundles key coverages into one shop insurance policy, typically including:
- General liability: Protects against bodily injury, property damage, personal injury (such as libel, slander, invasion of privacy, etc.), or advertising injury.
- Commercial property: This policy may cover your Buildings and Business Personal Property, including on-hand inventory. As an added bonus, it can automatically adjust your property coverage limit for seasonal inventory increases, for your additional inventory during peak seasons, without requiring manual updates.
- Business income: Helps replace lost income due to reduced business activities from a covered loss.
This bundled approach keeps coverage simple and cost-effective—a win for busy gift shop owners.
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Liability and Theft are Common Risks for Gift Shops
Like all retail stores, gift shops carry liability risks. More foot traffic during peak tourist seasons or holidays increases the chances of slips and falls. From uneven flooring to cords and displays, seemingly minor issues can create major liabilities.
Deering stresses the importance of maintaining a safe environment year-round. Keep floors clear, secure cords, and ensure rugs or displays aren’t posing hazards. What seems minor to you can become a major liability in a customer’s or claims adjuster’s eyes.
Then there’s the risk of theft. It might surprise you to learn that customer shoplifting and employee theft fall under different parts of the policy. BOP policies can include optional crime coverage that may address employee dishonesty and loss of money or securities. It’s important to talk to your independent Central agent about coverage limits and whether an enhancement is needed.
Business Personal Property Limit – Seasonal Increase Helps Manage Seasonal Inventory Risks
Gift shops that experience seasonal inventory fluctuations often face challenges in maintaining adequate insurance coverage during peak periods. Central’s BOP includes Business Personal Property Limit – Seasonal Increase coverage to allow your business to temporarily increase Business Personal Property coverage limits during high-inventory times, helping to ensure you’re not underinsured during critical sales periods. This approach can eliminate the need to set a higher-than-necessary coverage limit year-round, which could lead to unnecessary premium costs during off-peak seasons when inventory is lower.
Go Beyond Basic Shop Insurance Coverage with Property Plus
If your gift shop is located in a high-traffic area or you rent your space in a retail strip, Central’s Property Plus endorsement can provide valuable added protection for you in the event that premises rented to you are damaged, your shop is temporarily closed for repairs, and outdoor property like signage or decorative items are damaged.
Cyber Protection is a Critical Endorsement of Your Shop Insurance
While a BOP provides broad protection, the base policy doesn’t include cyber liability. However, Central does offer optional cyber endorsements to help mitigate cyber threats to your business.
According to Deering, for gift shops doing online orders, subscriptions, or storing customer payment data, cyber can be a big exposure.
Central’s Cyber Suite insurance can covers first- and third-party cyber claims, data compromise, cyber breach response, and more.
The Central Difference in Shop Insurance
Choosing the right carrier can make all the difference when purchasing shop insurance. Central makes it easy for agents to get a BOP quote quickly, often with just a few questions.
Deering emphasizes that Central is accessible. Our policyholders can reach us directly if they need help, not just through their agent. Central is a company built on small-town values and understands what small businesses need.
Whether you’re just opening your doors or preparing for the busy season, having the right insurance in place means you can focus on growing your gift shop business and delighting your customers.
From all-in-one BOPs to tailored insurance solutions, Central provides the right mix of protection, affordability, and confidence. Find a local, independent Central agent to explore your insurance options and make sure your gift shop is fully protected.
The information above is of a general nature and your policy and coverages provided may differ from the examples provided. Please read your policy in its entirety to determine your actual coverage available.
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