What Appliance Store Insurance Policies Should I Invest In?

Owning an appliance store comes with unique operational challenges beyond general retail risks. From installing washing machines and delivering refrigerators to managing high-value inventory, appliance store owners face a wider array of exposures that require the right appliance store insurance protection to protect their business from major financial setbacks.

In this article, Travis Owens, senior commercial lines underwriting manager at Central Insurance, shares his insights on how appliance store owners can mitigate risks and what insurance coverages you may consider prioritizing to protect the business you’ve worked hard to build.

What are the Primary Risks of Owning an Appliance Store?

Whether you’re an established retailer or opening your first location, appliance store owners wear many hats—as retailers, service technicians, delivery operators, and in some cases, repair professionals.

Each function introduces a risk. Here, Owens outlines some of the most common:

• Slip-and-Fall Liability: When customers walk through showrooms, an uneven floor or wet surface can quickly become a premises liability claim.
• Installation issues: Most of the 13,000 appliance stores in the U.S. offer installation services. Improper hookup, especially of water-using appliances like dishwashers or washing machines, can cause water damage or even fire, exposing your business to further liability.
• Delivery-related property damage: Scratched hardwood floors, dented drywall, or broken doors during appliance delivery could result in costly claims if your employees are at fault.
• Auto liability: Delivering appliances means your employees are often on the road, increasing the potential of an accident occurring while driving a company vehicle.

What are Key Appliance Store Insurance Policies You May Need to Mitigate These Risks?

Owens outlines four essential appliance store insurance policies you may want to consider to protect your store, employees, and reputation.

Appliance Store Insurance Protection #1: Business Owner’s Policy (BOP)

For many appliance store owners, a Business Owner’s Policy (BOP) is the most efficient way to get a combination of general liability and property coverage. Owens notes that most appliance stores are BOP-eligible, which means you could benefit from this bundled coverage option.

BOPs typically include:

• Commercial liability coverage to provide financial protection for third-party bodily injury and property damage, such as customer slip-and-fall incidents.
• Commercial property insurance to provide financial protection for your building and contents, including appliances on display and backstock inventory.
• Business income coverage to help offset lost net income if a covered loss (e.g., storm damage) shuts your doors temporarily or reduces business operations.

“BOPs offer the flexibility to address many common risks appliance stores face while providing a solid foundation for more specialized coverages as your business grows,” Owens says.

Appliance Store Insurance Protection #2: Inland Marine

Though the name may sound unrelated, inland marine insurance can cover items in transit. This coverage is particularly useful if you deliver appliances to homes or construction sites. If a refrigerator or stove is damaged in a delivery truck accident or while being hauled into a customer’s home, inland marine coverage can help cover the cost of the loss.

“If you’re delivering a full suite of appliances to a new house, that can easily represent $10,000 in product,” Owens emphasizes. “Inland marine can ensure you’re not paying for those losses out of pocket.”

Inland marine insurance can also extend to appliances temporarily stored off-premises, such as in a delivery truck overnight or at a construction staging area. Without this coverage, you may not be entitled to payment for a loss of these high-value items vulnerable to theft, vandalism, or weather-related damage beyond your store’s premises. It can add an extra layer of protection for goods in transit or stored away from your primary business location.

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Appliance Store Insurance Protection #3: Commercial Auto

Many appliance stores own delivery trucks that transport appliances to customer homes, businesses, or construction sites. These vehicles and the employees driving them represent a significant exposure that requires proper insurance protection.

A commercial auto policy can provide vital coverage for both owned and non-owned vehicles used in your business operations, including:

• Bodily injury and property damage liability to cover injuries or property damage your employee may cause to others while operating a company vehicle.
• Physical damage coverage (collision and comprehensive) for your owned vehicles, protecting against damage from accidents, theft, vandalism, or severe weather.
• Medical payments coverage to cover medical expenses for your driver and passengers injured in a covered accident, regardless of fault.
• Uninsured/underinsured motorist coverage to protect your business if your driver is involved in an accident with someone without sufficient insurance.

“If an employee crashes a delivery truck and injures another driver or damages a customer’s fence, auto coverage can kick in,” Owens explains. “Without proper coverage, those costs could seriously impact your bottom line.”

Owens also recommends talking to your independent Central agent about adding umbrella coverage to provide an extra layer of protection beyond your general liability and auto limits. Given the high value of appliances and the potential for lawsuits, a $1 to5 million umbrella policy is a wise investment, especially if your store delivers and installs appliances in residential areas.

Appliance Store Insurance Protection #4: Workers’ Compensation

Employees who lift heavy appliances, work in uncontrolled environments, and face hazards like back strains or electrical mishaps are at greater risk of injury. Workers’ Compensation insurance protects your business from financial losses if an employee is injured on the job. Most states require any business with employees to carry this coverage. Beyond meeting legal requirements, it helps safeguard your appliance store from costly claims and supports a safer, more compliant workplace.

The Central Difference in Appliance Store Insurance

When selecting insurance for your appliance store, it’s about more than just finding the lowest premium. You need a carrier that understands your industry’s unique risks—protecting expensive inventory, covering liability for in-home deliveries, or safeguarding your business from costly employee injuries. An insurance partner with industry-specific expertise can tailor policies that fit your operations, unlike a general policy designed for other sectors.

“Every appliance store is different,” Owens notes. “Some are mom-and-pop shops, others operate across multiple locations. An experienced Central agent will help you select the right limits and tailor coverage based on your business model and risks.”

It’s also important to work with a financially stable provider with a proven track record—like Central, which has been protecting businesses since 1876. Central holds an “A” (Excellent) rating with a stable outlook from A.M. Best, reflecting its long-standing financial strength and commitment to policyholders.

At Central, we believe insurance is more than a policy—it’s a promise to protect what matters most. Backed by integrity, personalized service, and a deep understanding of the risks appliance stores face, we’re here to provide the peace of mind you deserve.

Contact your local, independent Central agent for more information about appliance store insurance or to start your customized quote.