How much does insurance cost for home furnishing stores?
Key furniture store insurance policies and their expected costs
Here are the top types of insurance policies purchased by furniture retail stores and their average monthly costs:
- Business owner's policy (BOP): $106 per month
- General liability insurance: $57 per month
- Workers' compensation insurance: $140 per month
- Commercial umbrella insurance: $59 per month
- Commercial auto insurance: $202 per month
- Cyber insurance: $57 per month
Our figures are sourced from the median policy costs for retail companies that apply for quotes with TechInsurance. The median provides a better estimate of your expected insurance costs because it excludes outlier high and low premiums.
Business owner's policy for furniture stores
Furniture businesses pay an average of $106 per month, $1,273 per year, for a business owner's policy (BOP).
A BOP combines general liability insurance and commercial property insurance into one convenient, cost-effective package that protects you from a wide range of third-party risks, such as customer injuries, property damage, and vandalism.
Furniture retail stores with lower risk exposure often qualify for a BOP.
This is the average BOP for furniture stores that buy from TechInsurance:
Insurance premium: $106 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $1,000
The cost of a business owner's policy is based on several factors, including the value of your property, your location, and the number of employees you have.
You can also expand your policy with additional coverage by adding endorsements based on your needs, such as business interruption insurance or equipment breakdown coverage.
General liability insurance for furniture stores
On average, furniture stores pay $57 per month, or $686 annually, for general liability insurance coverage, which is the most common type of liability insurance.
General liability insurance covers retail businesses from common third-party liability claims involving personal injuries, property damage, or advertising injuries.
For instance, if a customer suffers a fall while shopping for mattresses, or if an employee causes accidental damage or breakage to a client's new furniture, general liability insurance can help cover medical bills, repair costs, or legal expenses.
Many property managers require retail business owners to show proof of general liability coverage to sign a rental lease.
Generally speaking, general liability insurance includes product liability coverage, which would protect your business if a product causes harm, such as a piece of reclining outdoor furniture that collapses and causes damage, or wood furniture that cracks and punctures the customer.
This is the average general liability insurance policy for home furnishing shops that buy from TechInsurance:
Insurance premium: $57 per month
Policy limits: $1 million per occurrence; $2 million aggregate
The per-occurrence limit is the most your insurance company will pay for a single incident, while the aggregate limit is the maximum paid for all claims during the policy period (usually one year).
The cost of general liability insurance is based on several factors, including the types of furnishings you sell, the policy limits and deductible you choose, the size and location of your business, the number of employees you have, and any exclusions or endorsements on your policy, such as an additional insured.
Workers’ compensation insurance for furniture stores
Furniture retail businesses pay an average of $140 per month, or $1,684 per year, for workers’ compensation insurance.
This policy helps cover medical expenses, rehabilitation costs, and lost wages if an employee is injured or becomes ill while performing work duties. It also includes employer’s liability coverage, which protects your shop if an injured employee files a lawsuit over a workplace incident.
Most states require businesses with employees to carry workers’ compensation insurance. The specific rules vary by location.
For example, all employers in Pennsylvania must carry workers' comp if they have one or more employees. Florida businesses need coverage when they have four or more employees, and coverage is optional in Texas.
Even if you’re self-employed, carrying workers’ comp can protect you financially if you’re injured on the job. Standard health insurance often excludes work-related injuries, leaving you to pay out of pocket without this coverage.
Your workers’ comp premium depends mainly on how many employees you have, the type of work they perform, and your claims history. You can help lower your costs by classifying employees accurately and adopting a workplace safety program to reduce injury risks and claims.
Other factors, such as the cost of healthcare in your state, can also affect your premium.
Find workers' comp requirements in your state
Commercial umbrella insurance for furniture stores
Retail stores, including furniture businesses, pay an average of $59 per month, or $707 per year, on umbrella insurance coverage.
This coverage helps cover your retail furniture store in the event that the coverage limits on your general liability, employer's liability (as part of your workers' comp insurance), or commercial auto policy isn't enough to cover an incident.
Umbrella coverage boosts your policies in $1 million increments and may be necessary to fulfill a contract or sign a lease, such as a retail business storefront rental contract.
Commercial auto insurance for furniture stores
Furniture retailers pay an average of $202 per month, or $2,424 per year, for commercial auto insurance.
This coverage protects your store if a company-owned vehicle is involved in an accident. It can pay for bodily injury or property damage claims, as well as legal fees if you’re sued. Many policies also cover vehicle theft, vandalism, and weather-related damage.
Most states require commercial auto insurance for business-owned vehicles. If you use personal, rented, or leased vehicles for work, consider hired and non-owned auto (HNOA) insurance to fill coverage gaps.
The cost of commercial auto insurance depends on several factors, including your policy limits, the coverage options you choose, the number and value of your vehicles, and the driving records of anyone permitted to drive.
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Cyber insurance for furniture stores
Retail businesses, including furniture stores, pay an average of $57 per month, or $683 per year, on cyber insurance, also known as cyber liability insurance or cybersecurity insurance.
This coverage helps your retail business recover from the financial impact of a cyberattack or data breach. It can help pay for data recovery, breach investigations, notification costs, legal defense costs, and even cyberextortion payments.
Furniture retail stores often digitally process and store private customer information, such as credit card information, email addresses, names, addresses, and more. Having a cyber insurance policy can help protect your business in the event of a data breach or cybersecurity incident.
The cost of your cyber insurance policy depends on factors such as how much sensitive data you manage, your cybersecurity controls, and your claims history. Stores that store large volumes of customer information typically need higher limits to ensure full protection.
Top factors impacting furniture store insurance costs
Several key factors impact furniture store insurance costs including:
- Types of products sold: Stores that sell costlier and larger home and office furniture, such as expensive sofa sectionals, will pay more than businesses that sell lower-cost home goods.
- Number of employees: How many people you employ can directly impact how much you will pay for your insurance plans.
- Claims history: Previous insurance claims may signal policyholder risk to insurance providers, as it's more likely that businesses with past claims will file future claims.
- Value of business equipment and property: Your property and inventory value can impact your insurance, with more expensive property requiring higher coverage limits. For example, selling handcrafted pieces with quality workmanship will likely mean your inventory will cost more than cheaper, mass-produced furniture, which will, in turn, increase your insurance costs.
- Plan coverage limits and deductibles: How much insurance you elect to purchase will impact your insurance costs. Higher deductibles and lower limits on your policies can help you save money.
- Business location: Businesses in areas with higher crime rates, more foot traffic, or that are prone to more severe weather will often pay higher insurance rates.
- Business size and revenue: Larger businesses with higher annual revenue and more employees will generally pay more for insurance solutions than smaller stores.
- Type of business: Brick-and-mortar businesses with in-store operations often have higher risks than e-commerce stores.
There are some factors you can’t control when it comes to retail store liability insurance costs, but you and your employees can still take meaningful steps to lower risk and reduce claims, which can help keep your insurance costs down.
How do I get affordable home furnishing store insurance with TechInsurance?
TechInsurance works with top U.S. carriers to help furniture retail businesses find the right coverage, whether you operate solo or run a small business with multiple employees.
When you’re ready to purchase a policy, you’ll be paired with an account manager who specializes in liability insurance for retail businesses. They can guide you through selecting the right policies to protect your business and get peace of mind.
You can buy other insurance products online with TechInsurance in three easy steps:
- Complete a free online application with your business details.
- Compare quotes from top-rated U.S. insurance providers.
- Select a policy and pay the premium to begin coverage.
Our licensed agents are available to answer questions about your insurance options, business risks, state requirements, and how to find cheap furniture store insurance. Most small businesses can receive a certificate of insurance within 24 hours of applying for quotes.
