Party Supply Store Insurance
Getting insurance for your party supply store is essential.
Party supply stores need to be protected against things like claims of personal injuries, false advertising, and breach of contract.
For example, your store could be accused of running misleading ads or breaching a contract for inventory.
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 Party Supply Store
General liability insurance is — generally speaking — one of the most important insurance policies for party supply stores.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Since general liability is often unable to fully cover the range of risks your military surplus store could face, you will likely have to invest in some of the following policies:
- Business income coverage offers financial protection in case of significant business interruptions, like natural disasters or power outages, by covering lost income, relocation costs, and additional expenses incurred during the recovery process.
- Professional liability insurance safeguards against allegations of professional negligence or failure to provide adequate advice or service, covering legal fees and damages resulting from a lawsuit.
- Workers' compensation insurance covers medical bills and related expenses for employees who become sick or injured while performing job-related duties.
When selecting an insurance provider for your interior design business, you can choose between traditional brick-and-mortar insurers such as Nationwide or The Hartford or online insurers like Tivly or Next. Online insurers can be a more cost-effective option for small businesses, while traditional insurers offer considerable experience and good reputations.
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Cost of General Liability Insurance
The average party supply store in America spends between $500-$1,500 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a party supply 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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Discover the best coverage at the lowest rate in our affordable business insurance review.
Common Situations That General Liability Insurance May Cover for a Party Supply Store
Example 1: A customer is walking over a slick section of tile floor in your storefront. There is no indication that it is wet, and the customer slips, falling and breaking his wrist. If held liable, your business would probably have some coverage under a general liability insurance policy for damages incurred or a settlement reached outside of court.
Example 2: One of your cashiers knocks over a customer’s extremely hot coffee, seriously burning the customer’s hand. General liability insurance would likely cover some of what your business owed in damages or some of any settlement reached.
Example 3: A stocking ladder is left standing while an employee briefly heads to the restroom. A small child climbs up the ladder when his parent is not watching and falls seven feet onto the hard concrete floor. If found liable, your business would probably be covered for some of the resulting damages.
Other Types of Coverage Party Supply 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
This policy is designed for businesses that rely on the sales of products for profit. As a party supply business, nearly all of your revenue would come from sales of your inventory. If a customer suffers some kind of injury from a product you sell, a product liability policy can keep your business covered.
Commercial Property Insurance
A commercial property policy will help cover the cost of replacing or repairing property damaged by events like a fire or storm. This includes owned real estate, inventory, and equipment.
Workers’ Compensation Insurance
If you have full-time or part-time employees, you will be legally required in most states to offer workers’ compensation insurance. These policies offer coverage for employee injuries sustained on the job. If your workers are hurt while helping you to run your business, you want to be sure you are covered for anything that leads to significant medical expenses. Workers’ compensation insurance will also cover disability and death benefits.
Business Interruption Insurance
This policy is designed to help businesses recover from disasters that temporarily disable operations. Business interruption policies anticipate catastrophes like fires, tornadoes, and certain other destructive forces that may reach your storefront. During your business’s downtime, this policy will help to cover estimated profit losses. Sometimes, it even helps to cover the costs associated with temporary relocations. Business interruption insurance and commercial property insurance can combine to make your company extremely resilient.
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 party supply 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.
Party Supply 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. Business insurance is a necessary requirement for opening a party supply store due to the unique set of risks involved. Failing to obtain sufficient insurance coverage from the start can result in significant financial liability and instability.
Additionally, it may lead to legal issues if certain policies, such as workers' compensation insurance, are required by law but not in place. Thus, launching a party supply store without proper insurance protection is not recommended.
Not necessarily. Certain exceptions may be written directly into your party supply 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.