Business Insurance for Bait and Tackle Shops

All businesses, regardless of industry, face risks that should be covered by insurance. The most common and comprehensive type of policy business owners invest in is general liability insurance.

Some of the risks general liability insurance covers are:

• Bodily injury
• Property damage
• Medical payments
• Legal defense and judgment
• Personal and advertising injury
  
  

While businesses aren’t legally required to carry general liability insurance, operating without it is extremely risky. If your business is sued, you could end up facing fees totaling hundreds of thousands of dollars (or more). Having a sufficient general liability insurance policy in place to help compensate for these damages is the only way to prevent this type of event from devastating your business.

Check out our review of the Best Small Insurance Companies.

Common Situations That General Liability Insurance May Cover For A Bait And Tackle Shop

Of course, this is not an exhaustive list of perils a general liability insurance policy will cover, and some conditions may result in a particular peril not being covered. It’s always best to talk to your agent in-depth about the specifics of your policy to avoid blind spots in coverage.

Learn more about the risks covered by general liability insurance.

The average bait and tackle shop in America spends between $400-$1,100 per year for $1 million in general liability coverage.

Check out the chart below for a snapshot of average general liability insurance expenditure across a variety of industries:

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.

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 other types of insurance all bait and tackle shops should obtain:

Product Liability Insurance

A product liability insurance policy covers the damages caused by a product that you sell. If a customer decides that your fishing supplies were the cause of his injuries, for instance, and took legal action, your product liability insurance would pay for the cost of your legal fees and any settlement that you wound up paying to settle the case out of court. 

Workers’ Compensation Insurance

Your state most likely has laws requiring you to carry workers’ compensation insurance if you have employees. The workers’ comp policy you carry will help you protect your employees. Should one of them be injured performing a work-related task, the policy will pay for their medical treatment and help cover lost wages if they are required to stay home from work.

In addition to the policies outlined above, there are a few other types of coverage your bait and tackle shop may require depending on certain aspects of your operations. Some of these might not apply to you, so be sure to ask your agent which policies are right for your business. 

Commercial Auto Insurance

If your bait and tackle business has one or more company vehicles, you need commercial auto insurance. Commercial auto insurance provides protection should you or an employee be involved in an accident in a company vehicle. It will help pay for the cost of repairing or replacing the company vehicle and any other vehicles damaged. It will also help pay for medical care for you, your employees, and anyone else injured in the accident.

Commercial Umbrella Insurance

A commercial umbrella insurance policy is designed to pick up the slack when a general liability insurance policy reaches its limits. There are certain situations where this can happen, like if your business were to lose a big lawsuit and you were required to pay extensive damages. Once the limits of your general liability insurance are reached, the umbrella policy takes over.

Although it’s easy (and essential) to invest in business insurance, it should not be your frontline defense. Yes, insurance will compensate for your business’ financial losses after an incident occurs, but it’s much better to avoid losses altogether.

With this in mind, here are several things you can do to better protect your business:

• Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
• Set up a limited liability company (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.
• Streamline your business’ internal processes. This will remove unnecessary variables from common tasks and create a safe, consistent environment for conducting business.
• If your business is an LLC, look into LLC Insurance.

Depending on where you are in your business building process, here are some other actions you may need to take before getting started:

• If you’re just starting, finding the best name for your business is a great first step. Check out TRUiC’s Business Name Generator.
• After finding the perfect name, get a logo with our Logo Generator.
• Every business needs a website. Using a website builder like the GoDaddy Website Builder or Wix makes building a website simple and fast! Check out our review of the Best Website Builder.

What is included in a business owner’s policy?

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.

What is the difference between business insurance and general liability insurance?

"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.

Do I need insurance before I start a business?

You should invest in insurance coverage for your business before your first interaction with a customer. Although the cost of insurance may seem high for a brand new business, it’s best to be proactive when it comes to protecting your assets. After all, you can’t buy insurance to cover a loss that has already occurred.

Will insurance protect my business from everything?

Not necessarily. Certain exceptions may be written directly into your policy, and some perils may be entirely uninsurable. Be sure to discuss the scope of your policy in-depth with your agent to avoid being blindsided by holes in your coverage.