Whether you run a flower shop, clothing boutique, dry cleaning operation, or any other retail establishment in Hawaiʻi, having the right policies can make all the difference in your success.
Let’s look at the importance of retail business insurance and the types of business insurance you should carry to protect your local shop or boutique.
Importance of Retail Business Insurance
Small business owners have invested time and money into their business. It makes sense that they want to take every precaution to protect themselves from potential accidents and errors.
Retail insurance can protect shops and boutiques from common risks in their industry.
What Insurance Should You Carry?
Every small business is unique; however, there are certain types of business insurance that most shops and boutiques should all carry to protect the business and its employees.
Some policies, such as workers’ compensation insurance and commercial auto insurance, are required on every island in Hawaiʻi. Others may be optional but recommended to prevent financial losses.
If you operate a local shop or boutique, consider carrying the following policies:
Business Interruption
Business interruption insurance protects against income loss when a covered peril impacts a business. Perils can range from fire and wind damage to theft and falling objects.
A business interruption policy may assist your business in two ways. First, it may reimburse you for lost income as a result of destroyed merchandise.
Next, it may cover extra expenses incurred, such as the cost of temporarily relocating your business.
Commercial Property
Commercial property insurance protects a business’s physical assets from explosions, theft, vandalism, and similar events.
Floods and earthquakes are usually not covered by property insurance unless added to the policy or purchased separately. A commercial policy covers everything inside your building, just outside the building, and the building itself.
Commercial Auto
Commercial auto insurance is required to cover cars, vans, and trucks used for your business. Typical policies cover physical damage, auto liability, and no-fault exposures.
Similar to many other states, businesses in Hawaiʻi are required to carry commercial auto insurance if they have any business-owned vehicles.
Commercial General Liability (CGL)
Commercial general liability insurance provides coverage for personal injury, bodily injury, and property damage caused by the business’s products, operations, or injuries that occur on business premises.
If sued by a customer, CGL insurance may help pay for attorney and defense costs, medical payments, judgments, and settlements.
Professional Liability
Professional liability insurance protects you if a client files a lawsuit against your business due to bad advice or an alleged mistake.
Also known as errors and omissions insurance, this policy can cover legal expenses, settlement costs, and other fees that result from a liability claim.
Temporary Disability Income (TDI)
Under the Hawaiʻi Temporary Disability Insurance (TDI) law, employers are required to provide eligible employees with partial wage replacement insurance coverage for non-work related illnesses or injuries that occur due to an off-the-job sickness or injury.
TDI coverage does not include medical care. To provide TDI benefits, a shop owner must purchase an insured plan from an authorized insurance carrier or adopt an approved self-funded plan.
Flood
Though it is not typically covered under standard property insurance, many small businesses choose to buy a separate flood insurance policy for protection from the damage any flood causes.
This includes the physical location and the contents inside such as plumbing and electrical systems, water heaters and furnaces, appliances, windows, carpeting, foundation walls, and more.
Commercial Crime
Commercial crime insurance protects a business from the financial losses caused by internal employees or third parties. It provides coverage for loss of assets due to fraud, theft, burglary, forgery, and other crimes.
Any business that hires part-time employees, manages inventory, engages in cash transactions, or has expensive equipment in the office is exposed to petty theft.
Workers’ Compensation
With few exceptions, Hawaiʻi state law requires businesses with one or more employees to carry workers’ compensation insurance.
This type of policy covers medical treatment for work-related illnesses or injuries. It may also provide disability benefits to recovering employees if they are unable to return to work.
Commercial Umbrella
Commercial umbrella insurance provides businesses with an additional layer of protection by covering costs that go beyond standard liability coverage limits.
Without commercial umbrella insurance, your business could be required to pay out-of-pocket costs that go over your policy limits, such as medical bills, legal costs, damage to a third party’s property, settlements, and judgments.
Talk to an Expert at Atlas Insurance
You work hard to keep your shop or boutique running successfully. At Atlas, we understand the unique risks that small businesses in your industry face and offer risk management expertise and services to protect your business and bottom line.
Locally owned and operated, Atlas Insurance Agency will gladly help you manage your business’s risks.