How Much Is Retail Insurance?

According to Insureon quoted premium statistics, the average monthly cost of retail insurance coverage is $183 across 12 firms and numerous policy types. According to Insureon cited premium data, retail enterprises that only require a general liability coverage pay an average of $66 per month.

Your business insurance rate will be determined by factors such as the types and amounts of coverage you select, the number of employees you have, your location, and your prior claims history. In addition to the average cost, we'll go over some of the top firms that provide retail business insurance as well as ways to save money so you can discover affordable coverage that matches your needs. 

Average Cost of Retail Insurance

The average quoted premiums shown below were gathered over a seven-month period on Insureon, a leading commercial insurance marketplace. General liability limitations were typically $1 million per occurrence and $2 million aggregate. 

While it is critical to consider your budget when shopping for retail store insurance, the business with the lowest cost may not match your demands. Choose an insurance that will not leave you with coverage gaps. Before making a decision, you should also consider each retail insurance company's financial strength and customer satisfaction scores. 

Factors Influencing Cost

The cost of retail business insurance varies not just based on the coverage kinds and limitations you select, but also on individual criteria that insurers consider when deciding whether or not to insure your company. 

General Liability

General liability insurance reimburses you for the costs of a lawsuit filed against your company if someone claims your company is to blame for an injury or property damage. It also covers personal and advertising injury—for example, if someone says your advertising is deceptive, general liability will pay for your defense and any verdicts. Premiums are determined by the following factors:

• The condition, size, and location of your business premises
• The nature of your business
• How long have you been in business
• How many workers do you have?
• Your annual income
• Your previous claims history

Business Owner’s Policy

Some retail store owners may want to combine their general liability and commercial property insurance into a single policy known as a "business owner's policy" (BOP). A BOP covers damage to your business premises and its contents, as well as lost income if your retail store is forced to close due to a covered event, such as a fire. BOP premiums are calculated, in addition to the considerations indicated above, by:

• The worth of your structure and its contents
• The location of your business premises, which influences the possibility of theft, vandalism, and other potentially destructive incidents.
• Whether you choose replacement cost or actual cash value reimbursement
• Whether you add endorsements to the policy

Commercial Auto Insurance

Commercial auto insurance is required by law if your company owns and runs vehicles (if you or your employees drive personal vehicles for business purposes, you may need hired and non-owned auto coverage instead). Commercial auto insurance protects your company's vehicles against physical damage and liabilities. The following factors influence your commercial auto premium:

• The deductible and policy limits that you choose
• Which optional coverages you buy
• The number and type of vehicles owned by your company
• How often you and your employees drive
• The driving records for you and your employees
• Previous claim history

Workers’ Compensation

Most states require firms with a particular number of employees to have workers' compensation insurance; for example, Alabama requires it for businesses with at least four employees. After an employee falls ill or injured while doing their job tasks, the coverage pays for medical expenditures and missed wages. It also usually shields your company from employee litigation. The following factors affect workers' compensation premiums:

• Where your employees work
• The quantity and nature of your workers
• Your annual salary 
• Your claim history for workers' compensation

Insurance Companies to Consider for Retail Insurance

Consider reviewing the top retail insurance firms we uncovered in our analysis of some of the top insurance companies in your hunt for retail shop insurance.

Chubb

Chubb is ranked second in the J.D. Power U.S. Small Commercial Insurance Study and provides general liability insurance with low average quoted prices. "2022 U.S. Small Commercial Insurance Study." J.D. Power. The company also has an AM Best financial strength rating of A++ (Superior), the highest available. Chubb has no general liability complaints with the National Association of Insurance Commissioners (NAIC), but has a higher-than-expected complaint rate for commercial property and workers' compensation insurance. It also does not provide business vehicle insurance. 

Nationwide

Nationwide distinguishes out in terms of client satisfaction: its NAIC complaint rate across numerous insurance types is lower than expected given its market position, and it is ranked third in small commercial insurance by J.D. Power. Nationwide also has an AM Best A+ (Superior) financial strength rating and provides all four of the key coverages that many retail shops require. 

Liberty Mutual

Liberty Mutual has an A (Excellent) financial strength grade from AM Best with significantly cheap commercial car BOP average rates. The insurer provides most of the coverages a retail shop owner could need—general and professional liability, commercial auto, workers' compensation, and business interruption protection—but it ranks slightly below average for small commercial insurance by J.D. Power, and its NAIC complaint index is nearly twice as high as what is expected for a company of its size.

The Hartford

The Hartford provides all of the coverage types that a retail store generally needs, as well as employee benefits. AM Best gives the insurer an A+ (Superior) financial strength grade and reasonably low average premiums for general liability coverage. The Hartford, on the other hand, has a higher NAIC complaint rate than would be expected for a company of its size and is ranked lowest in small commercial insurance by J.D. Power.

Travelers

Travelers has a full BOP tailored to retail enterprises, and you can supplement it with workers' compensation and commercial vehicle coverage. AM Best rates the company's financial strength as A++ (Superior), and J.D. Power ranks it slightly above average for small commercial insurance. Overall, for a company of its size, the insurer has a low NAIC complaint rate for BOP insurance and general liability. 

CNA Insurance Companies

CNA provides the necessary coverages for retail companies. The insurer has an AM Best financial strength grade of A (Excellent) and a lower overall NAIC complaint rate than would be expected for its size. The average premiums charged by the company are also lower than those of numerous competitors we looked at. 

State Auto

State Auto provides all of the most critical retail coverages and has the lowest average cost for workers' compensation insurance of the firms we looked at. AM Best has also assigned the corporation an A+ (Superior) financial strength rating. State Auto, on the other hand, has more than double the expected percentage of workers' compensation complaints with the NAIC. 

Progressive

Progressive provides the most important retail business insurance coverages and is the market leader in commercial auto insurance. The company has an extremely high quote rate for retail stores seeking policies on Insureon and an AM Best financial strength grade of A+ (Superior). Progressive, on the other hand, has a higher-than-expected complaint rate with the NAIC for a company of its size, particularly for liability insurance. The average business car premiums for the company are likewise extremely high. 

National General

National General, an Allstate affiliate, provides retail businesses with standalone commercial auto plans as well as non-owned auto coverage. The insurer has had no NAIC complaints about commercial cars in the last three years and has an AM Best financial strength rating of A+ (Superior). However, when compared to the competition, National General's typical premiums are high. 

Hiscox

Hiscox has the lowest average premiums among the firms we looked at and provides all of the necessary coverages for a retail shop. AM Best rates the company's financial strength as A (Excellent). Hiscox, on the other hand, has a high NAIC complaint index, indicating that it received complaints at a higher rate than would be expected for a company of its size. 

How to Save Money on Retail Insurance

• Compare quotes: You may discover that various insurance companies charge significantly different prices for the same policy. Narrow your options to well-rated businesses that provide the coverage you require, and then choose the lowest estimate. 
• Choose a high deductible: Some insurers may provide you the option of selecting a deductible. Your premiums will be lower if you choose a bigger deductible. Simply keep financial reserves on hand in case of a claim, as you will be liable for covering your deductible.
• Bundle your policies: If you require both liability and property insurance, a BOP may save you money over purchasing the policies separately. Some insurers may provide discounts if you purchase multiple types of coverage. 
• Work to reduce losses: Some insurers may lower your premiums if you require your personnel to receive safety training or implement other risk-reduction steps. Avoiding claims will also aid in keeping your premiums as low as possible.