Whether it’s holiday gift-giving season or not, toy stores have their own set of liability risks. Some are common to any business. Others are directly related to the products sold and the clientele that patronizes the shop.

Like any retail outlet, fire, a severe storm, vandalism, shoplifting and theft can cause significant property damages and losses. Further, the damage may lead to temporary or long-term business closing and the related income loss.

RELATED: Explaining Commercial Property Insurance

Toy Store Insurance Claim Example:
A salesperson dropped his cigarette in the backroom and sparked a fire. This resulted in $45,000 damage to the building and $14,000 in merchandise and other business personal property damage. The toy store was forced to shut down operations while repair work was in process, resulting in a $19,000 loss of income in addition to the $12,000 laid out for related extra expenses.

On the other side of the spectrum, a toy store may be subject to a lawsuit in the event someone gets hurt on premises or a product causes injury. With all these issues and more at stake, a toy store needs an insurance program designed specifically for related exposures.

Toy Store Insurance Claim Example: It was only a small dusting of snow that covered the parking lot after a storm but it was enough to cause a customer to slip, fall and break his wrist. The customer sued the business for medical expenses.

Toy Store Insurance Claim Example: When a child was injured while playing with a defective toy, it was not only the manufacturer that became the brunt of a lawsuit. The toy store had to deal with a negligence lawsuit for selling an item that did not conform to safety standards. 

A Toy Store’s Business Owners Policy

Insurance companies offer the following coverage to protect against associated exposures, depending on the individual business’s needs.

These include:

• Commercial General Liability Insurance
  
  
• Commercial Property Insurance
  
  
• Business Interruption Insurance
  
  
• Employment Practices Liability Insurance
  
  
• Commercial Crime Insurance
  
  
•  Product liability Insurance
  
  
• Commercial Auto Insurance
  
  
• Cyber Liability Insurance
  
  
• Workers Comp Insurance
  
  
• Equipment Breakdown Insurance

Of course when holiday season is marked by larger stock of inventory and more traffic inside and outside of your store, your insurance needs may be greater. Speaking to an insurance professional about related insurance and/or adding on special riders during the busy shopping time can help you get important coverage for your business.

PRIME Insurance is a three-generation family-run independent agency. We’re proud to partner with many of the leading underwriters – recognized companies like ACE, AmTRUST, ASI, ASSURANT, CHUBB, CNA, Employers, FOREMOST, Liberty Mutual, MetLife, PROGRESSIVE, Safeco, StillWater, Travelers, USLI, ZURICH and more. This gives us the ability to provide all forms of nationwide coverage and bonds at competitively lowest quotes. Visit us on our online insurance website or email us at PRIME [at] primeins [dot] com or call us at 732-886-5751 and HAVE A PRIME DAY™!

Summary: Toy stores share related risks to other retail outlets. Then there are specific concerns centered exclusively on the industry. Here we bring you an outline on associated commercial insurance coverage..