Skate Shop Business Insurance
Getting insurance for your skate shop is pivotal.
This is because you will want to protect your business’s assets from product liability claims, bodily injuries, and vendor-related disputes.
Business insurance can also be crucial when it comes to proactively protecting your inventory from potential damage and/or theft.
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 a Skate Shop
General liability insurance is — generally speaking — one of the most important insurance policies for skate shops.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Even so, your skate shop business will likely benefit from purchasing additional coverage; this is because a general liability policy will not protect it from all foreseeable risks.
Additional coverage options you will likely want to consider include:
- Product liability insurance — Protects you in the event that a piece of equipment purchased from your store malfunctions and causes a customer physical harm.
- Commercial property insurance — Covers the cost of repairing and/or replacing your inventory in the event that it gets damaged or stolen.
- Business interruption insurance — Protects your business income in the event that you are required to temporarily shut down due to a covered risk.
You will also need to find the right coverage provider for your skate shop. There are two different types of insurers available:
- Online insurers: Use AI in order to offer personalized coverage online.
- Brick-and-mortar insurers: Offer personalized coverage via live insurance agents.
We recommend going for an online insurer that has a reliable claims procedure, affordable rates, and great customer service ratings.
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Cost of General Liability Insurance
On average, skate shops in America spend between $500 - $1,100 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a skate shop 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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Discover the best coverage at the lowest rate in our low-cost business insurance review.
Common Situations That General Liability Insurance May Cover for a Skate Shop
Example 1: As a customer tests a skateboard deck, the wheels catch on a cord running in front of your cashier stand. His fall shatters the glass countertop and causes serious injuries. General liability insurance would pay for the customer’s medical costs and your legal fees in the event of a lawsuit.
Example 2: During an in-store customer appreciation event, someone spills a drink causing another customer to slip and break an arm. Your general liability coverage would pay for the customer’s medical bills and any other costs associated with a lawsuit.
Example 3: When a shipment arrives early, no one is available to unload the truck so the driver offers to help in order to keep his other deliveries on schedule. As he enters the building, the loading dock door malfunctions and hits the delivery truck door as well as the driver’s head. Your general liability insurance would cover the driver’s medical bills as well as repair costs for the delivery truck.
Other Types of Coverage Skate Shops 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:
Commercial Property Insurance
You’ve made major investments in the latest equipment, furniture and a broad inventory to ensure your skate shop stands out. If you own the building in which you operate, you’re responsible for all business-related property housed there in the event of a fire or other natural disaster. Commercial property insurance would cover the cost of repairing or replacing your business equipment after an accident so you can recover quickly.
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.
Business Interruption Insurance
If you must temporarily close after a fire, flood, or another natural disaster, business interruption insurance can cover some of your financial losses until you can reopen.
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 skate shop:
- 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.
Skate Shop Business 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.
Generally speaking, yes. We recommend purchasing your business insurance before you begin interacting with clients and/or purchasing equipment in order to ensure that you are properly safeguarded from all potential liability.
Not necessarily. Certain exceptions may be written directly into your skate shop 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.