How much is clothing store insurance?

Clothing stores pay an average of $88 per month, or $1,057 per year, for a business owner's policy (BOP).

A business owner's policy bundles general liability insurance with commercial property insurance at a lower cost than buying these policies separately. You can often include additional coverages as well.

A BOP provides coverage for your store in the event of a fire, storm, or burglary. It also protects against liability claims related to bodily injuries and property damage, such as a shopper who trips on a clothing rack and suffers a concussion.

Common add-ons include business interruption insurance (or business income coverage) to cover lost income and operating costs during a temporary closure, and equipment breakdown coverage to help your business recover from the failure of a point-of-sale system or other necessary equipment.

This is the average BOP for clothing businesses that buy from TechInsurance:

Premium: $88 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

Businesses that are eligible for a BOP usually are small in size (fewer than 100 employees) and low risk.

The cost of a business owner's policy depends on factors such as the value of your property and inventory, your business operations, and whether your store has a burglar alarm, sprinkler system, or other loss control measures.

General liability insurance for clothing stores costs an average of $42 per month, or $500 per year.

This type of insurance covers accidental property damage and customer injuries. It usually includes product liability insurance, which protects your business against legal expenses if a customer sues over harm caused by a product.

General liability insurance also pays for lawsuits related to advertising injuries, such as defamation or copyright infringement. It would cover legal costs if you published a photo of a customer's new outfit on your website without permission, or slandered a competitor on social media.

Below is the average general liability policy for clothing stores that buy from TechInsurance:

Premium: $42 per month
Policy limits: $1 million per occurrence; $2 million aggregate

You might need general liability coverage to rent a storefront, sign a contract, or get a business loan. It shows your landlord and partners that they're protected against financial losses from the most common risks.

The cost of general liability insurance depends on numerous factors, including the type of products you sell, the policy limits and deductible you choose, the amount of foot traffic at your shop, and the number of employees you have.

Clothing retailers spend an average of $73 per month, or $874 annually, on workers' compensation insurance.

Workers' comp pays for medical expenses and disability benefits in the event of a employee injury. For example, if a worker strains their back while unloading a shipment of clothes, this policy would pay for their medical treatment and provide partial wages during their recovery.

Workers' compensation policies usually include employer's liability insurance. This type of coverage pays for legal costs if an employee sues their employer over an injury.

State laws often require retailers to secure workers' comp as soon as they hire their first employee, but that's not always the case. It's required in California and New York for every business with employees, in Florida for every business with four or more employees, and it's optional for most companies in Texas.

Even though workers' comp may not be required for sole proprietors or independent contractors, such as a small e-commerce shop, it's still recommended. Medical bills are expensive, and most health insurance plans can deny claims for injuries that happen on the job.

The cost of workers' compensation mostly depends on the number of employees you have and the type of work they do. It's often less expensive for businesses in states that have lower healthcare costs.

Clothing stores pay an average of $47 per month, or $567 per year, for commercial umbrella insurance.

This policy helps cover your clothing store in the event that the coverage limits on your general liability, employer's liability, or commercial auto insurance aren't enough to cover an incident.

Umbrella coverage boosts your underlying insurance policies in $1 million increments. You might need it to sign a contract with a shipper or supplier who requires higher-than-average liability limits.

Even when it's not required, you should consider carrying this type of retail business insurance coverage. It helps protect against the most expensive claims, such as multi-vehicle accidents or a product that harms many customers.

The cost of umbrella insurance depends on the amount of coverage you buy, along with the same factors that affect the cost of the underlying policies.

Retail businesses, including those that sell clothing, pay an average of $171 per month, or $2,054 per year, for commercial auto insurance.

If your delivery truck gets into an accident, this policy would help pay for any damages you caused. It would also cover your legal fees if you're sued.

You can buy coverage for other risks as well. For instance, collision insurance pays for repairs if your vehicle is damaged in a collision, while comprehensive insurance covers damage to your vehicle from other sources, such as hail, theft, and vandalism.

Almost every state requires this coverage for businesses that own a vehicle, as personal auto insurance won't cover business driving. To protect personal, rented, and leased vehicles used for work, you'd need hired and non-owned auto insurance (HNOA) instead.

The cost of commercial auto policies can vary considerably. Some of the most important factors are your employees' driving records, the policy's limits and deductible, the number of vehicles you own, and the coverage options you choose.

The average cost of cyber insurance for retailers, including clothing stores, is $57 per month, or $683 annually.

This policy covers expenses related to cyberattacks and data breaches. It can pay for cyber incident investigations, provide reimbursement for ransomware payments, and help with costly customer notifications, which may be required by state laws after a breach.

Cyber insurance is crucial for stores that collect customer information, such as email addresses and credit card numbers. It's sometimes called cyber liability insurance or cybersecurity insurance.

The cost of cyber insurance mostly depends on the type of business you own and the amount of personal information you handle.