Educational Toy Store Insurance
Getting insurance for your educational toy store is essential.
Educational toy stores need financial protection from a number of liabilities they could face, such as product liability, personal injury, or breach-of-contract claims.
For example, a child could be injured by a defective product, or a supplier could sue your company for breach of contract.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for an Educational Toy Store
General liability insurance is — generally speaking — one of the most important insurance policies for educational toy stores.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Educational toy stores and other businesses commonly purchase general liability insurance because it offers a lot of coverage. However, you should also consider other types of policies that cover situations that general liability insurance doesn’t, such as:
- Data breach insurance
- Workers’ compensation insurance
- Product liability insurance
- Commercial umbrella insurance
Insurance providers are generally grouped into two categories that both have their pros and cons. These include traditional insurers and online insurers:
- Traditional brick-and-mortar insurers — Encompassing companies like The Hartford and Nationwide, traditional insurers are always a safe bet. However, they aren’t always the cheapest option. That’s because they use agents to sell policies out of physical offices, which means they have a lot of overhead.
- Online insurers — Online companies like Next and Tivly, by contrast, sell insurance on their websites using AI instead of agents. That means their costs are lower, and they pass those lower costs onto their customers. The upshot is that you can get the same high-quality coverage from an online insurer much faster and cheaper.
We recommend that small companies seriously consider online insurers, which are trustworthy and offer lower prices and personalized quotes.
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Cost of General Liability Insurance
On average, educational toy stores in America spend between $300 - $800 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for an educational toy store to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
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Common Situations That General Liability Insurance May Cover for an Educational Toy Store
Example 1: While running through your store, a customer’s child falls and breaks an arm. The child’s mother asks your business to pay for the girl’s medical treatment. General liability insurance would cover the child’s medical bills.
Example 2: As an employee moves several boxes of toys to a customer’s car, she loses control of the handcart and it hits the side of the car. General liability insurance would cover the customer’s vehicle repair costs.
Example 3: While entering your store from the parking lot, a customer trips over some broken pavement, breaks an ankle, and decides to sue your business. General liability insurance would cover your legal fees.
Other Types of Coverage Educational Toy Stores Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Product Liability Insurance
While you strive to sell products that enrich the lives of the children who play with them, there’s always a chance someone might claim one of your products caused them harm. In the event of a lawsuit, product liability insurance would cover your legal fees and any required settlement.
Commercial Property Insurance
You made a major investment in the inventory, equipment, supplies, and real estate needed to establish your toy store. In the event of a fire, theft, or natural disaster, commercial property insurance would cover the cost of repairing or replacing your business-related property. This includes structural damage to your building and the business materials stored there.
Workers’ Compensation Insurance
Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability or death benefits stemming from a work-related accident.
Commercial Umbrella Insurance
While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your educational toy store:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Educational Toy Store Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
Yes. All businesses should have sufficient business insurance before starting to operate so they’re protected from the financial risks inherent in running any company. The state in which you operate also might require some forms of business insurance, such as commercial auto or workers’ compensation.
Not necessarily. Certain exceptions may be written directly into your educational toy store insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.