Personal Shopper Service Insurance
Getting insurance for your personal shopper service is essential.
Personal shoppers need to be protected against things like property damage, trademark infringement, and personal injuries.
For example, you could lose or damage items that you purchased for a client, or you could get into an accident while shopping and cause injuries or property damage.
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 Personal Shopper Service
General liability insurance is — generally speaking — one of the most important insurance policies for personal shopper services.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Although general liability insurance offers extensive coverage, there may still be specific risks that your business could be exposed to and that are not covered by this type of insurance. To address these potential risks, you may want to contemplate obtaining supplementary policies.
- Commercial auto insurance: Because you will be using a vehicle for your business, this insurance is necessary to cover accidents that occur while on the job, as standard auto insurance policies will not cover these incidents.
- Business income coverage: This insurance provides financial protection in case you have to stop operating for some reason, such as a power outage or natural disaster.
- Professional liability insurance: This type of insurance provides protection against claims of negligence or failure to provide proper advice or service. If a lawsuit is filed, this insurance covers the cost of legal fees and damages.
When obtaining insurance for your business, you typically have the option to select from two types of insurers: traditional brick-and-mortar insurers, such as The Hartford, Hiscox, and Nationwide, or online insurers, like Next and Tivly.
It is highly recommended to opt for online insurers, as they generally provide better value for money. This is because they sell insurance through digital channels, resulting in lower operational costs that allow them to offer cheaper quotes.
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Cost of General Liability Insurance
On average, personal shoppers 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 personal shopper service 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 Personal Shopper Service
Example 1: When a delivery driver moves an order of dresses into your shop on a dolly, he trips over a display and seriously injures himself. Your general liability policy would cover his medical bills and any damages in the event of a lawsuit.
Example 2: Your new holiday ad pokes fun at a competitor and, while popular with customers, leads to a defamation lawsuit from your rival. General liability insurance would cover your legal fees and any payouts awarded in the settlement.
Example 3: As a customer rushes to your restroom, she slips on a wet floor and seriously injures herself. Because you did not display a “caution” sign, she decides to sue. General liability insurance would cover her medical bills, your legal fees and any damages awarded in the settlement.
Other Types of Coverage Personal Shopper Services 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:
Business Interruption Insurance
If you must temporarily close after a fire, burglary, or natural disaster, business interruption insurance can cover some of your financial losses until you can reopen.
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 Property Insurance
Image is key in the personal shopping industry, making it important to invest your time and money in designing a beautiful store. And the specialized tools of the trade like your in-store displays, computer system, furniture and inventory are all very valuable. If a fire or other accident damages any of these items, you must replace them before you can reopen for business. If you own your building, commercial property coverage would cover the repairs and replacement of these important business items after an 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 personal shopper service:
- 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.
Personal Shopper Service 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 an essential requirement for launching a personal shopper service due to the specific risks involved. Failing to obtain adequate protection before starting the business can result in significant liability and financial instability.
Additionally, insurance policies such as workers' compensation insurance may be required by law. Not having them can lead to legal problems.
Not necessarily. Certain exceptions may be written directly into your personal shopper service 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.