Watch Business Insurance
Getting insurance for your watch business is essential.
Watch businesses need to protect themselves against things like false or misleading claims that relate to a watch’s quality, property damage, and vendor-related disputes.
One of your suppliers, for example, may claim that you did not pay them according to your agreed-upon contract, or your watches may be found to be defective.
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 Watch Business
General liability insurance is — generally speaking — one of the most important insurance policies for watch businesses.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Having said that, your watch business might benefit from purchasing additional coverage policies. This is because a general liability policy may not fully protect it from all foreseeable risks.
Additional coverage options worth considering include:
- Commercial property insurance will cover the cost of repairing and/or replacing your inventory if it happens to get damaged or stolen.
- Workers’ compensation insurance will protect you from employee-related claims and disputes.
- Business income insurance will cover part of your lost income if you are required to temporarily shut down.
You will also need to decide what type of business insurance provider you will use:
- Traditional brick-and-mortar insurers (e.g., Nationwide, The Hartford, etc.).
- Online insurers (e.g., Tivly, Next Insurance, etc.).
We recommend going with an online insurer in general as a small business owner; this is because online insurers have significantly lower operating costs and can thus offer personalized coverage at a much more affordable rate.
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Cost of General Liability Insurance
On average, watch companies 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 watch business 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 Watch Business
Example 1: A customer comes into your store and accidentally trips over some cables running across the floor. As a result, the customer breaks an arm and hits their head on the floor. General liability insurance would cover the customer’s medical costs and any other damages in the event of a lawsuit.
Example 2: As a supplier unloads merchandise onto your back dock, the overhead door malfunctions and hits the supplier’s vehicle. The impact not only damages your incoming merchandise but also crushes the rear door of the delivery vehicle. General liability insurance would cover the vehicle repair costs as well as your damaged merchandise.
Example 3: An employee moves some heavy tools from your off-site storage to your store. To get the tools inside, the employee must drive a pallet jack through the parking lot. As the employee maneuvers the pallet jack into the side door, they lose control and the pallet slams into a customer’s car. The accident smashes the customer’s car window and leaves the door inoperable. Your general liability insurance would pay for damages to the customer’s vehicle.
Other Types of Coverage Watch 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 of the most common types of coverage:
Product Liability Insurance
If one of your watches or other products somehow causes a customer to become injured and they sue, you could be held liable for damages. Product liability insurance would cover your legal defense costs and any settlements awarded to your customer as a result of the lawsuit.
Workers’ Compensation Insurance
Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. If one of your employees becomes injured at work or falls ill after a work-related accident, workers’ compensation insurance will cover their medical costs and, if appropriate, any disability benefits.
Commercial Umbrella Insurance
While you've planned to protect your business from the most common workplace incidents, certain situations could lead to a lawsuit that may exhaust your primary insurance limits. Commercial umbrella insurance provides coverage beyond your current policy limits, in the event of an expensive accident or lawsuit.
Business Interruption Insurance
Disaster can strike anytime, forcing you to close down while you make repairs. If you must temporarily close after a fire, robbery, or weather-related accident, business interruption insurance can cover some of your financial losses. In many cases, you may purchase this type of coverage as part of a comprehensive business owner’s policy or 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 watch business:
- 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.
Watch Business 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.
Generally speaking, yes. As a watch business owner, you will want to purchase your business insurance before you begin interacting with customers. This will ensure that your business is protected from potential lawsuits (e.g., for product liability concerns) but will also cover the cost of replacing stolen or damaged inventory.
Not necessarily. Certain exceptions may be written directly into your watch business 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.