Last Updated: February 22, 2024, 2:54 pm by TRUiC Team

Sporting Goods Store Insurance

Getting business insurance for your sporting goods store is essential. 

This is because sporting goods stores need to be protected from a variety of different risks, such as bodily injuries, commercial vendor-related disputes, and property damage claims. 

For example, if a customer or an employee accidentally injures themselves within your store’s premises — or damages any property on-site — your business may be required to cover any resulting damages.  

We’ll help you find the most personalized and affordable coverage for your unique business.

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Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.

Best Insurance for a Sporting Goods Store

General liability insurance is — generally speaking — one of the most important insurance policies for sporting goods 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, it is important to remember that not all sporting goods stores will be covered with a general liability policy and may require additional coverage, such as: 

  • Commercial property coverage will protect your business’s equipment (e.g., equipment inventory, etc.) in the event that it gets damaged or stolen. 
  • Commercial auto insurance is required by law if you own a vehicle that will be used exclusively for your store’s business. 
  • Workers’ compensation coverage will protect your business from employment law-related disputes.
  • Business income insurance will cover part of your lost income in the event that you are required to close down due to a covered risk. 

You will also need to find the best business coverage provider for your small business; there are two different types of options available:

  • Traditional brick-and-mortar insurers (e.g., CNA, etc.). 
  • Online insurers (e.g., Next Insurance, etc.). 

Even though both types offer different benefits, we recommend going with an online insurer due to the fact that they are significantly more affordable. This can allow you to stay as cost-efficient as possible when starting out.

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Cost of General Liability Insurance

The average sporting goods store in America spends between $400 - $1,100 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a sporting goods 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.

Graph showing average price of general liability insurance prices per industry

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Find the Best Rate

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 Sporting Goods Store

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Example 1: While playing with a ball in your store, a child trips over a box and breaks a wrist. General liability insurance would cover the child’s medical bills.

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Example 2: As a customer tries out a treadmill in your store, it malfunctions and suddenly speeds up. In the resulting fall, the customer breaks a collarbone, suffers a concussion and decides to sue. General liability insurance would cover the customer’s medical bills as well as your legal fees and any damages awarded in a settlement.

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Example 3: Your latest marketing campaign boosts sales, but part of its messaging upsets a competitor and leads to a libel lawsuit. General liability insurance would pay your legal fees and any damages awarded in a settlement.

Other Types of Coverage Sporting Goods 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:

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 benefits stemming from a work-related accident.

Commercial Property Insurance

You make major investments to maintain a broad inventory of sporting goods. If you own the building in which you operate, you’re responsible for all business-related property housed there in the event of a fire or other natural disaster. Commercial property insurance would cover the cost of replacing your inventory and other business equipment after an accident so you can recover quickly.

Product Liability Insurance

While your high-quality products are generally safe if used properly, there’s always a chance a customer may file a lawsuit if they believe one of your products harmed them. Product liability insurance would protect your business by covering your legal fees and any damages awarded in the event of a lawsuit.

Commercial Auto Insurance

Every vehicle you drive for business purposes requires commercial auto coverage. If you use personal vehicles for work duties, your personal car insurance won’t pay for damages to your car or medical treatment for anyone injured in a work-related accident. Commercial auto insurance protects all vehicles you use on-the-job in the event of an accident.

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 sporting goods 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.

Sporting Goods 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. Since liability could technically arise at any point after you begin interacting with clients — or hiring employees — we recommend purchasing your business insurance before you begin operating. 

This is the “safest” option and can end up saving you a lot of money in the long term.

Not necessarily. Certain exceptions may be written directly into your sporting goods 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.