Shoe Line Business Insurance
Getting business insurance for your shoe line is essential.
Shoe lines need to be protected against a variety of different claims, such as those that relate to trademark and copyright infringements, employment law disputes, and accidental injuries.
You will also need business insurance in order to protect your commercial shoe line property from potential 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 Line
General liability insurance is — generally speaking — one of the most important insurance policies for shoe lines.
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 line may benefit from considering additional policies. This is because you will want to protect yourself from all of the foreseeable risks that you will be privy to, such as those that relate to:
- Property damage or theft — Can be covered via a commercial property insurance policy.
- Employee injuries or other legal claims — Can be covered via a workers’ compensation insurance policy.
- Copyright or trademark infringements — Can be covered via an intellectual property insurance policy.
When acquiring your business insurance, you will need to find the right provider for your unique needs. There are currently several great options available, but we found that they all tend to fall within one of the two following categories:
- Traditional brick-and-mortar insurers — Common examples include Nationwide and The Hartford. In order to get started, you will need to speak to a specialized insurance agent.
- Online insurers: Common examples include Tivly and Next Insurance. These types of insurers use AI in order to offer coverage instead of a live agent.
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Cost of General Liability Insurance
On average, shoe lines in America spend between $350 - $750 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a shoe line 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 Shoe Line
Example 1: You are showing an investor around your facility when she trips over a cable and falls, breaking her arm. She demands that you pay for her medical care. Your general liability insurance policy will likely pay for her treatment if you file a claim.
Example 2: A competing shoe line has sued your business for libel. Your general liability insurance policy covers legal defense fees when someone accuses your business of libel. It will pay for your lawyer and for a settlement if one is necessary.
Example 3: An employee is bringing in a large box of product from the back when he knocks over a visitor to your business. The visitor breaks his arm and sues your company. Your general liability insurance policy will pay your legal defense costs, including the cost of hiring an attorney.
Other Types of Coverage Shoe Lines 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
You invested a large amount of capital in the equipment, supplies, inventory, and other items you use to run your business. If you were to lose your property in an unexpected event like a fire, it would be difficult to replace. Commercial property insurance can help in such circumstances. It will help pay for the replacement of property lost in events covered by the policy.
Workers’ Compensation Insurance
The employees you have at your shoe line need the coverage that comes with workers’ compensation insurance. If they get injured performing their job-related tasks, the policy will pay for their medical treatment. If they are unable to work for a time due to the injuries, the policy will help pay their lost wages.
Product Liability Insurance
You want your shoe line to make your customers happy and satisfied with their purchases. However, there is always a chance that a customer could decide that your product caused them injury and sue your business over it. A product liability policy will pay your legal defense costs in these circumstances. It will pay for your lawyer and for a settlement if necessary.
Commercial Umbrella Insurance
A commercial umbrella insurance policy will pick up where your general liability insurance policy leaves off. If you exceed the limits of your general liability policy, such as if you were to lose a big lawsuit, the umbrella policy would kick in and start paying. It will help you avoid paying damages out of pocket.
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 line:
- 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 Line Business Insurance FAQ
Can I buy business insurance online for my shoe line?
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.
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 shoe line?
Generally speaking, yes. Getting the right business insurance policies (e.g., commercial property, workers’ compensation, intellectual property, etc.) before you begin operating is considered to be the safest option, as liability could theoretically arise as soon as you begin interacting with clients or employees.
Will insurance protect my shoe line from everything?
Not necessarily. Certain exceptions may be written directly into your shoe line insurance policy, and some perils may be entirely uninsurable.
Do I need business insurance if I already have an LLC?
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.