Business Insurance for Shoe Repair Businesses

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Business insurance is designed to protect a business owner's financial assets and is an essential investment for a shoe repair business.

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About General Liability Insurance

All businesses, regardless of industry, face risks that should be covered by insurance. The most common and comprehensive type of policy business owners invest in is general liability insurance (or CGL).

Some of the risks CGL insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

While businesses aren't legally required to carry general liability insurance, operating without it is extremely risky. If your business is sued, you could end up facing fees totaling hundreds of thousands of dollars (or more). Having a sufficient CGL policy in place to help compensate for these damages is the only way to prevent this type of event from devastating your business.

Learn more about the risks covered by general liability insurance.

COMMON SITUATIONS THAT GENERAL LIABILITY INSURANCE WOULD COVER FOR A SHOE REPAIR BUSINESS

Example 1: You are excited about a new logo you had made for your business, and you begin to use it in all of your new marketing materials. A competitor claims that your logo is too similar to his own logo and sues you over it. The general liability insurance policy you have will pay for your legal defense and cover the cost if you need to settle out of court.

Example 2: You are carrying a stack of shoeboxes from the back to the front of your store when you accidentally run into a customer. She stumbles and falls backward, catching herself awkwardly. She breaks her arm and requires medical care. Your general liability insurance policy will likely pay for her medical treatment.

Example 3: A customer drops off his prized shoe collection for you to re-sole. Overnight, a storm hits and causes a leak in your roof, pouring water onto the shoe collection and ruining it. Your general liability insurance would cover the cost of replacing the collection.

Of course, this is not an exhaustive list of perils a general liability insurance policy will cover, and some conditions may result in a particular peril not being covered. It's always best to talk to your agent in-depth about the specifics of your policy to avoid blind spots in coverage.

Cost of General Liability Insurance

On average, shoe repair businesses in America spend between $500 - $1,500 per year for $1 million in general liability coverage.

Check out the chart below for a snapshot of average CGL expenditure across a variety of industries:

Graph showing average price of general liability insurance prices per industry

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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Other Types of Coverage shoe repair businesses 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 other types of insurance all shoe repair businesses should obtain:

Commercial Property Insurance

The supplies and equipment you have invested in would be expensive to replace if you were to lose it in an unexpected event like a fire. To avoid needing to come up with the money for replacing your property on your own, you can purchase a commercial property insurance policy. Your policy will help you pay for replacing your commercial property if it is damaged or destroyed by a covered event.

Professional Liability Insurance

The professional liability insurance policy you carry for you and your business will be designed specifically for you as a shoe repair company. It will protect you from liability related to your professional work. For instance, if a customer was to sustain an injury while wearing the shoes you repaired and he was to claim that your repair work was the cause of his injuries, he could sue you. Your professional liability insurance would pay for your legal defense fees.

Types of Coverage Some shoe repair businesses May Need

In addition to the policies outlined above, there are a few other types of coverage your shoe repair business may require depending on certain aspects of your operations. Some of these might not apply to you, so be sure to ask your agent which policies are right for your business.

Workers’ Compensation Insurance

If you have employees, chances are your state requires that you carry workers’ compensation insurance. The policy you purchase will protect your business and your employees by paying for medical treatment for job-related injuries. It will help to pay for lost wages while injured employees recover.

Additional Steps to Protect Your Business

Although it's easy (and essential) to invest in business insurance, it should not be your frontline defense. Yes, insurance will compensate for your business' financial losses after an incident occurs, but it's much better to avoid losses altogether.

With this in mind, here are three things you can do to better protect your business:

  • Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
  • Set up a limited liability company (LLC) to protect your personal assets. (Refer to our guide for step-by-step instructions on how to form an LLC in your state.)
  • Streamline your business' internal processes. This will remove unnecessary variables from common tasks and create a safe, consistent environment for conducting business.

Frequently Asked Questions

What is included in a business owner’s policy?

A typical business owner's policy includes general liability, business interruption, and 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 business?

You should invest in coverage for your business before your first interaction with a customer. Although the cost of insurance may seem high for a brand new business, it's best to be proactive when it comes to protecting your assets. After all, you can't buy insurance to cover a loss that has already occurred.

Will insurance protect my business from everything?

Not necessarily. Certain exceptions may be written directly into your policy, and some perils may be entirely uninsurable. Be sure to discuss the scope of your policy in-depth with your agent to avoid being blindsided by holes in your coverage.