Shoe Store Insurance

Getting business insurance for your shoe store is essential.

This is because shoe store owners need to protect themselves against a variety of different risks, such as vendor disputes and employment law claims.

Business insurance is also a necessity when it comes to protecting your inventory and other store assets from accidental damage 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 Shoe Store

General liability insurance is — generally speaking — one of the most important insurance policies for shoe stores.

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 shoe store might benefit from purchasing additional coverage policies.

This is because a general liability policy will not be able to “fully” protect you from all angles, and will leave certain risks uncovered. These include:

Property damage or theft: You will need to purchase a commercial property insurance policy instead.
Employment law disputes: You will need to purchase a workers’ compensation insurance policy.
Lost income due to shutting down: This is covered via a business interruption insurance policy.

Next, you will need to find the right coverage provider for your shoe store. There are several great options available for small business owners, but we found that they all tend to fall within one of the following two categories:

Traditional brick-and-mortar insurers (e.g., Nationwide, The Hartford, CNA, etc.).
Online insurers (e.g., Tivly, Next Insurance, etc.).

In the vast majority of cases, we recommend going for an online insurer. These have lower operating costs (e.g., no insurance agent, etc.) and can thus offer significantly more affordable rates.

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Cost of General Liability Insurance

The average shoe store in America spends between $350-$750 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a shoe 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 low-cost business insurance review.

Common Situations That General Liability Insurance May Cover for a Shoe Store

Example 1: On a rainy day, a customer slips on your shoe store’s floor and bumps their head in the fall. The bump results in a concussion and requires a ride to the hospital. General liability insurance would likely cover any medical bills or legal costs associated with the incident.

Example 2: A Black Friday sale draws in lots of customers, and they rush through the doors when your shoe store opens. In the jostling, one customer is unintentionally pushed to the ground and trampled by others. They have multiple injuries that require medical care. General liability insurance would probably cover care that’s needed.

Example 3: While a customer is trying on a pair of stilettos, the heel brakes and they fall. They sustain a sprained ankle and fractured wrist in the fall. General liability insurance would probably cover any lawsuit associated with the fall and necessary medical treatment.

Other Types of Coverage Shoe 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:

Commercial Property Insurance

If your shoe store owns the space it’s in, you probably need commercial property insurance for the building. In addition to insuring buildings, commercial property insurance can also protect equipment that’s kept on your store’s property.

Commercial property insurance is often included in a business owner’s policy (BOP).

Workers’ Compensation Insurance

As long as your shoe store has employees, you probably have to protect those employees with workers’ compensation insurance. Workers’ compensation insures against on-the-job injuries, and most states require businesses that employ people to carry it.

Product Liability Insurance

Businesses are sometimes held financially responsible for damage and/or injuries that occur if their products fail. Product liability insurance protects against product-related risks like these.

Even though the risk exposure for a shoe store may be minimal, this is still a good coverage to consider. When a product does fail, customers sometimes sue any business that handled the product—including the manufacturer, wholesaler, retailer, and others. Your business doesn't have to be at fault to be named in a lawsuit and face expensive legal costs.

Product liability insurance is frequently available through a BOP.

Commercial Umbrella Insurance

Umbrella coverage allows you to extend above and beyond the standard limits of your other business insurance policies. If you are faced with a large lawsuit or other claim situation, there’s a possibility that the coverage limits of your standard policies will be insufficient. In this case, your umbrella policy will allow you to surpass these limits.

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 shoe 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.

Shoe 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 you do. Liability could theoretically arise as soon as you begin interacting with clients, purchasing inventory, or hiring employees, and business insurance will only be useful if it is purchased proactively.

Coverage policies that you may wish to consider for a shoe store include general liability insurance, workers’ compensation insurance, and commercial property insurance.

Not necessarily. Certain exceptions may be written directly into your shoe 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.