Retail Insurance: What You Need, Best Options
Retail insurance protects your business from lawsuits and property damage. It may be required for a commercial lease.
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Retail stores need business insurance. In many instances, you can’t operate without it.
If you have employees, your state likely requires you to carry workers’ comp. Also, your store’s landlord may require proof of coverage before approving your lease application.
Typically, retailers have to have:
- General liability insurance. This protects your business if a customer or client sues you because they get injured or have something damaged while visiting your store.
- Commercial property insurance. This can pay out after a theft or natural disaster. It covers repairing or replacing damaged property.
The best way to get both these coverage types is to buy a business owner’s policy. Here are our recommendations for the best BOPs.
Brick-and-mortar retailers might need additional coverage, like commercial auto insurance. Here’s how to figure out what coverage you need and where to get it.
Save up to 30% on business insurance
NerdWallet Small Business helps you get real-time quotes from 30+ insurers, and instant access to your Certificate of Insurance (COI) through our partner, Coverdash.
Best retail insurance companies
NerdWallet’s editorial team chooses the best business insurance companies based on many factors. For retailers, we focused on insurers that:
- Receive relatively few general liability complaints and commercial property complaints to state insurance regulators based on their size.
- Are financially strong according to credit rating agencies, meaning they have the ability to pay claims.
- Make it easy to get a quote and buy a policy.
Here are some of our top insurance companies for retailers. We always recommend getting multiple quotes to find the best coverage at the best price.
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Chubb
Best business owner's policy
Chubb offers a business owner's policy with useful optional add-on coverages — like for data breaches, crime and employee dishonesty. You can get a quote and buy a BOP online if your business has less than $2 million in revenue. Chubb is the second-largest writer of commercial insurance policies, according to the most recent data from the Insurance Information Institute. Read NerdWallet's review of Chubb business insurance.
Cincinnati Insurance
Best for customer service
Policyholders filed far fewer complaints with state regulators about Cincinnati Insurance’s commercial liability and property coverages than we’d expect given the company’s market share. The insurer also tied for second in J.D. Power’s most recent commercial insurance customer satisfaction survey.
Cincinnati serves retailers that sell apparel, building materials, electronics and more. Some customers may be able to get three-year policies, meaning you won’t have to worry about updating your insurance for years at a time. We haven’t written a review of Cincinnati business insurance yet.
The Hartford
Best for multiple policies
Like Chubb, The Hartford offers a customizable BOP with additional data breach insurance and off-premises utility insurance. Beyond that, this company sells virtually every type of business insurance, including commercial crime and inland marine insurance.
You can start a quote online, but you may have to finish your purchase over the phone. Otherwise, The Hartford sells policies through independent insurance agents. Read NerdWallet's review of The Hartford business insurance.
Thimble
Best for short-term coverage
Thimble is an insurance agent. Since it doesn't underwrite insurance policies, we don't give it a star rating.
Thimble offers general liability insurance, property insurance and tools and inland marine insurance. You can opt for ongoing policies or short-term coverage for individual events. The latter makes Thimble a good option for retailers that need temporary coverage fast to comply with contractual requirements, like if you’re vending at a craft fair or farmer’s market. Read NerdWallet’s review of Thimble business insurance.
What is retail insurance?
Retail business insurance can protect your store from potential lawsuits and other losses. Any business with a customer-facing store — including clothing stores, jewelry stores, florists, grocery stores and more — should have insurance.
Here are some of the common risks that retailers face:
- Accidents that hurt customers or their property.
- Disasters, accidents or weather events that damage business property.
- Theft of merchandise, business tools or equipment.
- Data breaches.
- Employee illness or injury while on the job.
- Loss of income after shutting down to repair physical damage.
What kind of insurance does a retail business need?
At a minimum, most retail businesses should have general liability insurance, commercial property insurance and workers’ comp.
General liability insurance for retailers
General liability insurance typically covers third-party claims of:
- Bodily injury. Say a customer slips and falls on a wet floor in your clothing store and breaks their arm. Your general liability insurance would cover any related medical, legal or settlement costs.
- Property damage. For instance, you’re repairing a customer’s wedding dress in your seamstress shop and spill coffee on it, ruining the dress. General liability insurance could cover the costs to replace it.
- Personal and advertising injury. These are claims of libel, slander or copyright infringement made against your business. If an employee at your jewelry store makes a false claim about a competitor and the business owner hears and sues, your general liability policy would cover associated legal and settlement costs.
Commercial property insurance for retailers
Commercial property insurance protects your store’s physical assets. This includes the building itself and outdoor signs attached to it. But it also applies to business personal property inside your store, like equipment, furniture, computers, inventory and documents.
This type of policy covers damage from certain hazards, accidents and weather events. These usually include:
- Fires.
- Lightning strikes.
- Windstorms.
- Hail.
- Vandalism.
- Explosions.
- Falling objects.
For instance, a fire destroys your bookstore’s inventory. Your commercial property insurance would help cover the costs to replace it.
Business property insurance does not normally cover flood or earthquake damage, however. If your business is in an area with those risks, you can work with your insurance provider to add extra coverage.
Workers’ compensation insurance
Workers’ compensation covers costs for employees who suffer work-related illness or injuries. Most states require employers to have workers' compensation for their employees.
Say one of your employees falls off a ladder stocking shelves at your grocery store and breaks their ankle. Workers comp would cover expenses for their medical care, rehabilitation services and portions of lost income.
Additional insurance options for retailers
The chart below shows some other types of business insurance that your retail business might need.
| Type of insurance | What it covers | Example claim |
| Lost business income and operating expenses as the result of a disaster. | If an electrical fire breaks out in your storefront and you have to close your business to make repairs, this policy would cover the income you lose during the closure. It would also cover the essential expenses you need to pay until you’re up and running again, like offsite storage. | |
| Claims of physical injury or property damage as a result of a defective product. | If you sell a tablet in your electronics store that overheats and burns a customer, they could sue your business. Product liability insurance would cover the customer’s medical expenses, as well as your legal fees and any associated settlement costs. | |
| Financial losses caused by cyber incidents such as data breaches and theft, hacking and ransomware attacks. | If a hack exposes your customers’ credit card data, this policy can cover the costs associated with investigating the incident. It can also cover the costs to set up credit monitoring for your customers. | |
| Business property while it’s in transit or stored at a third-party location, like a warehouse. | If the warehouse that houses the inventory for your shoe store experiences a break-in, and you lose hundreds of pairs of shoes, this policy would help cover the costs to replace them. | |
| Employee dishonesty or commercial crime insurance | Financial losses that result from an employee stealing money or property. | If you realize an employee has been stealing money from the cash register of your furniture store, this type of policy would help cover those losses. |
| Off-premises utility service interruption insurance (usually available as an endorsement on your property insurance policy) | Lost business income if one of your utilities, like electricity, water or Internet, goes out due to a loss on the utility company’s property. | If the power goes out because a windstorm takes down power lines across your city and you have to stay closed for two days, this coverage could make up for some of your lost revenue. |
Most retailers should consider a business owner's policy. This package combines general liability insurance, commercial property insurance and business interruption insurance. Some also include data breach insurance or let you otherwise customize the policy.
Does retail insurance cover shoplifting?
In general, no. These policies generally cover burglary or robbery, which includes signs of forced entry. But they may exclude “unexplained inventory loss” or “mysterious disappearances.” This includes losses without clear evidence of what was taken when, like those you discover while taking inventory.
To protect yourself against shoplifting risks, you’ll need to focus on security measures, like stationing employees on your retail floor or checking receipts at exit. Still, it’s important to budget for some shrinkage in your inventory.
Save up to 30% on business insurance
NerdWallet Small Business helps you get real-time quotes from 30+ insurers, and instant access to your Certificate of Insurance (COI) through our partner, Coverdash.
How much does retail business insurance cost?
Online insurance agency Coverdash shared the following cost data with NerdWallet in 2026. We recommend a business owner’s policy for most retail businesses.
| Industry | Median BOP premium |
|---|---|
| Florists and flower shops | $1,200 per year |
| Convenience stores | $3,500 per year |
| Department stores | $2,500 per year |
| Consumer electronics stores | $3,200 per year |
| Pet supply stores | $1,500 per year |
The cost of your retail insurance will depend on a range of factors, including:
- Number of policies. The more insurance you need, the more you’ll generally have to pay.
- Business location. Some states have higher natural disaster risks than others, for instance.
- Number of employees. The more people who work in your business, the more potential for customer interactions that spark lawsuits.
- Previous claims history. If you’ve filed a claim before, your premium costs will typically go up.
- Business property. The more inventory you store, for example, the more it will cost to replace it after a disaster. That ups the cost of your property insurance.
- Nature of your business. Convenience stores may face higher theft risks than flower shops, since they’re generally open later and may keep more cash on site.
- Policy deductible and limits. The lower your deductible and the higher your limits, the more your insurance policy might have to pay out if you file a claim. That generally means your premiums will be higher.
The best way to get an accurate estimate of how much retail insurance will cost is to get multiple quotes. Every insurance company calculates premiums a little differently, so their prices will vary. Shop around to find the best coverage at the best price.
What if your inventory and staffing levels vary?
Lots of retail businesses are seasonal. You may need extra insurance for a holiday inventory buildup or the summer farmers’ market season. To tailor your coverage accordingly, look for:
- Pay-as-you-go workers’ comp insurance. This gives your workers’ comp insurance company access to your payroll data. Then, you pay for coverage based on your actual staffing level — not what you estimated at the beginning of the year. You’ll pay more during busy season, but less in the offseason.
- Optional seasonal coverage increases. This can up your coverage limits to protect a larger amount of inventory. The Hartford, for example, sells a business personal property seasonal increase as an add-on to a business owner’s policy.
How to get retail insurance
Follow these steps to get insurance for your store.
- Assess your risks. Consider the common and business-specific risks that your retail store faces. Do you have employees? Do you store customer payment data? What would happen if your building had a fire?
- Identify the coverage you need. Start with a business owner’s policy. Check whether you have to have workers’ comp insurance (you can see your state’s requirements here). Then consider whether you need cyber insurance, commercial crime insurance or other policies.
- Decide how to shop. If you want to talk to someone in person to dive deep on your risks, seek out an independent insurance agent or broker. If you need coverage ASAP, try using an online business insurance brokerage to get multiple quotes at once.
- Get quotes. If you’re working with an agent, they can do this for you. If you’re on your own, make sure you get two or more quotes from different insurers. This helps you ensure you’re getting the best coverage at the best price.
- Choose a policy and pay your premium. After buying your policy, sign up for an online account and learn how to make your payments. Enroll in automatic payments if they’re available so you don’t accidentally let your coverage lapse.
- Download your certificate of insurance. If you need proof of insurance for a commercial lease application or agreement, then download or request a certificate of insurance from your insurer. This proves that you have coverage. If your landlord wants you to add them as an additional insured, your agent or insurance company can help you do so.
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- 1. Insurance Information Institute. Facts + Statistics: Insurance company rankings. Accessed Apr 13, 2026.
- 2. J.D. Power. More Small Businesses Consider Dropping Their Insurers, JD Power Finds. Accessed Apr 13, 2026.
