Dollar Store Insurance
Getting insurance for your dollar store is essential.
Dollar stores need to be protected against things like claims arising from customer injury, product liability, and violations of consumer protection laws.
For example, a customer is injured due to an unmarked slippery floor, or a customer claims that one of your products contains undisclosed toxic materials.
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 Dollar Store
General liability insurance is — generally speaking — one of the most important insurance policies for dollar stores.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
In addition to general liability, it is common for dollar stores to take advantage of several additional policies to enhance their protection. Some of these policies include:
- Workers’ compensation insurance
- Product liability insurance
- Commercial property insurance
- Commercial umbrella insurance
When looking for business coverage, it is important to note the key differences between the two main categories that providers can fall into:
- Traditional brick-and-mortar insurers — Describes companies that rely on their physical storefronts and insurance agents to help their customers.
- Online insurers — Describes companies that rely on technology to be able to provide tailored insurance options to their customers online.
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Cost of General Liability Insurance
On average, dollar stores in America spend between $400 - $700 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a dollar 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 a Dollar Store
Example 1: While reaching for an item on a high shelf, a customer falls, breaks an arm, and decides to sue your business. General liability insurance would pay for your legal defense and any required settlement.
Example 2: When a customer slips and falls on a wet floor in your restroom, she breaks a wrist and demands you pay for her medical care. General liability insurance would cover her medical treatment.
Example 3: The competing dollar store across town files a lawsuit against your business over libel. While you disagree with the libel claim, you want to hire a lawyer immediately. General liability insurance would pay for your legal defense costs.
Other Types of Coverage Dollar 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:
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.
Product Liability Insurance
While you strive to ensure customer satisfaction with every purchase, 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 your store’s inventory. 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 as well as the inventory and other business materials you store there.
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 dollar 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.
Dollar 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.
It is crucial to the ongoing success of your dollar store that it is adequately protected with business insurance before its initial launch. This should make sure it is insulated from the financial impacts of the common risks it might encounter.
What’s more, certain insurance policies — such as workers’ compensation and commercial auto — may be an operational requirement if you want your dollar store to maintain legal compliance.
Not necessarily. Certain exceptions may be written directly into your dollar 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.