Business Insurance for Supplement Stores
Getting business insurance for your supplement store is essential.
This is because supplement stores need to protect themselves against a variety of different risks, such as those that relate to product liability disputes, personal injuries, and employment law violations.
You will also want to ensure that your physical assets are protected from 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 Supplement Store
General liability insurance is — generally speaking — one of the most important insurance policies for supplement stores.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
You might also benefit from purchasing other types of policies. This is because a general liability policy will not cover you from all of the risks that could seriously damage your business’s financial standing:
- Health problems as a result of a supplement: Product liability insurance
- Employment law disputes: Workers’ compensation insurance
- Damage or theft to supplement inventory: Commercial property insurance
You will also need to find the right business insurer for your unique needs. There are several options available, but we recommend going for an online insurer.
These providers (e.g., Tivly, etc.) use AI in order to offer personalized coverage without an insurance agent and can thus offer significantly lower prices than their more conventional brick-and-mortar counterparts (e.g., The Hartford, etc.).
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Cost of General Liability Insurance
On average, supplement stores 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 supplement 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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Common Situations That General Liability Insurance May Cover for a Supplement Store
Example 1: While shopping, a customer decides to grab an object off a high shelf. The customer accidentally pulls multiple items off the shelf and is hurt when they fall on his head. He wants to sue you for medical costs. General liability insurance should cover those costs.
Example 2: A product sold in your store becomes part of a class action lawsuit because of purported health issues, and your store becomes one of the defendants. Your general liability insurance is designed to pay for legal fees and associated payouts.
Example 3: An employee accidentally recommends three times the dosage of a supplement to a customer. As a result, the customer is hospitalized for three days. They want to sue you for medical costs as well as time missed from work.
Other Types of Coverage a Supplement 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:
Professional Liability Insurance
To gain a loyal customer base, you and your staff must be able to recommend and educate clients regarding the products you carry. Unfortunately, this increases your chances of a liability claim. Professional liability insurance, also known as errors and omissions insurance (E&O), offers coverage should a client sustain injuries or fall ill as a result of the store’s recommendation.
Workers’ Compensation Insurance
Most states require that you purchase workers’ compensation insurance for each employee. This type of policy offers coverage, up to the limits of the policy, for work-related injuries and lost wages. While typically not required, many business owners choose to cover themselves if they work on-site regularly.
Workers’ compensation is generally purchased as a standalone policy.
Product Liability Insurance
Product liability insurance is important for any business that creates and/or sells products to the public. If a customer falls ill or sustains an injury due to a product you carry, you could be named in a lawsuit. This coverage would offer you legal representation and pay out any damages awarded through the suit. Product liability insurance is tailored to the specifics of your business and the products you sell.
Commercial Property Insurance
If you own the property your supplement store operates out of, it is important that you protect your investment should a covered event occur. In addition to covering the building itself, commercial property insurance will offer a payout for business property that is lost, including store equipment and inventory.
This type of policy is often purchased as part of a business owner’s policy (BOP).
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 supplement 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.
Supplement 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.
This is because basic business insurance policies will be relatively affordable, and they could potentially end up saving you tens of thousands of dollars down the line if you end up avoiding an expensive legal settlement.
Not necessarily. Certain exceptions may be written directly into your supplement 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.