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Clothing Store Insurance

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Protecting Your Business Never Goes Out of Style

Clothes aren’t just something to protect you from the elements — they’re a creative way to express yourself and have fun. Your clothing store, whether you have a storefront, website, or both, is an escape for your customers. Running a clothing store isn’t all fun and games, though. You work hard to order best sellers and keep customers happy.

Simply Business helps you protect what you’ve built from scratch. Our retail insurance can cover accidents that could be costly at best and business-ending at worst. All you have to do to protect your business with insurance coverage is to answer a few questions.

It takes only a few minutes to get free, custom quotes.

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Insurance FAQs:

  • What is Business Insurance?

Coverage Type

Here are two types of business insurance available to clothing stores:

  • General liability insurance
  • Workers compensation insurance

Each type of policy covers different scenarios, but all insurance offers the benefit that:

  • It can protect your business from certain claims.
  • It can cover damages caused by your negligence.
  • Proof of insurance can help clients feel good about your work.
  • It may be legally required where you’re located.

Clothing shop employee checks inventory

What Type of Insurance Do I Need for My Clothing Store?

Raise your hand if you’d rather research peplum tops than policies, or coat styles rather than claims. We get that your business is clothing, and it doesn’t leave a lot of time for learning about business insurance. Plus, you have a lot of insurance options to choose from. We like to keep things simple around here, so let’s review the two types of business insurance to consider.

General Liability Insurance

When you think of physical or online clothing store insurance, it’s probably general liability insurance that comes to mind. See, you know more about insurance than you thought!

This type of policy typically covers bodily injury and property damage to third-parties, and other third-party accidents. In this case, “third-party” is insurance-speak for your customers and vendors. You also may be able to add contents coverage, which could offset your costs if your equipment is lost or stolen.

Does a clothing store really need insurance? Unfortunately, accidents can happen anywhere. Imagine your new hire forgets to put out the “wet floor” sign. A customer who is excitedly bounding toward a new clothing display, slips and falls on the wet floor, and they break their wrist trying to brace their fall.

Without business insurance, you’d need to pay the costs if the customer sues you for damages. The average claim for property damage or accidents in small businesses is $30,000, and you’d probably rather spend that money on a new retail space, inventory, or advertising.

The same accident would have a much different impact if you had retail insurance coverage. Your general liability insurance could cover the customer’s medical bills, as well as legal costs if they sue you.

So what can general liability insurance typically cover in your clothing store? Here’s a recap:

  • Third-party property damage
  • Bodily injury
  • Medical expenses
  • Personal and advertising injury
  • And more

General liability insurance does not cover:

  • Personal property damage
  • Professional services
  • Employee injury and workers compensation
  • Damage to your work
  • Motor vehicles during business use
  • Intentional injury or damage
  • And more

Workers Compensation Insurance

Working in a clothing store feels a lot like juggling one too many objects at once, so employees are a lifesaver. If you have employees — even one or two part-time helpers — your state probably requires you to carry workers compensation insurance.

You can check your state’s laws here, but workers comp is a good idea regardless of legal requirements.

This type of policy can cover costs associated with an employee’s injury or illness while they’re working for you. It’s estimated that the average work injury cost is about $41,000, so a small monthly payment for insurance upfront can save you from big claims down the road.

In general, workers compensation insurance for clothing stores can cover:

  • Medical payments
  • Lost wages
  • Rehabilitation expenses
  • Death benefits

Clothing shop employee standing at register

Why Should I Get Retail Insurance?

A business is a business, no matter what it sells. Your business also is a major investment — you’ve put in money, time, and dedication to grow your clothing store. Owning a business also comes with risks. Did you know that up to 43% of small business owners have reported being threatened with or involved in a civil lawsuit?

When you have something as precious as your business, it's worth protecting it. That’s where business insurance comes in.

You've earned every dollar, and you should be able to spend profits in a way that benefits your business — not get it out of trouble. The average costs that small business owners without insurance can be exposed to include:

  • $30,000 for property damage or accident claims
  • $39,000 for work injury claims
  • $50,000 for reputational harm claims (e.g., in cases of slander or libel)
  • $20,000 for a customer slip-and-fall case

By spending a small amount each month on your insurance policy, you can rest easy, knowing that you’re covered against such claims. Plus, you don’t need to pay for more insurance than you need. Premiums and prices are based on the size and needs of your business.

In addition to protecting your business from accidents, retail insurance also can help your business grow. Some landlords require a certificate of insurance (COI) as part of their lease agreement, so getting covered may help you secure your dream shop.

Being able to prove coverage also may build trust between you and vendors, customers, and potential employees.

At Simply Business, we make it easy to find the right insurance plan at the right price. Just answer a few questions about your business, and you can compare free quotes from the nation’s top insurers.

Question marks

Clothing Store Insurance FAQs

Is clothing store insurance required by law?

Each state sets its laws around business insurance, including coverage for clothing stores. Even in states where general liability insurance isn’t required, it’s encouraged. Plus, it might help you rent retail space or work with vendors.

Also, if you have employees, you’ll typically need workers compensation coverage.

Is retail insurance tax-deductible?

In general, yes, retail insurance can be deducted from your business’s income taxes. That said, it's best to talk to a local accountant about your business and state’s laws.

How much clothing store insurance will I need?

The amount of coverage your business may need will depend on:

  • The size of your company
  • Your store's location
  • Your annual revenue and payroll
  • And more

Our quote form is designed to let you compare multiple policy offerings, letting you pick the right coverage based on your business’s needs.

If you have more questions, our licensed insurance agents are available and will be happy to assist you!

What should I consider before buying retail insurance?

Our licensed agents can help you determine your state’s requirements, and you can compare free quotes to find the policy you’re comfortable with. The quote process is easy, but it will be even faster if you have the following information on hand:

  • Annual revenue estimates
  • Payroll estimates
  • Information on any previous claims

Does clothing store insurance differ by state?

Yes, it can. States set the laws around clothing store insurance and workers comp.

What does retail insurance cover?

A comprehensive retail insurance package that includes general liability and workers comp can cover:

  • Bodily injury
  • Accidents and damages
  • Employee injuries
  • Negligence or alleged negligence
  • And more

How much does clothing store insurance cost?

Our quote process helps tailor each quote to your business and needs, so it’s tough to provide an exact answer upfront. Generally, you can expect your insurance costs to be based on:

  • Payroll and revenue estimates
  • The location of your business
  • The specific services you offer
  • And more

Want to see how much your insurance may cost? Just click here and get free quotes from some of the most trusted insurers in the country.

Clothing shop employee hands bag to customer

Why Choose Simply Business?

We know you have a lot of choices when it comes to insurance for your clothing store and that it can be overwhelming.

That’s why at Simply Business we aim to make protecting your business as easy as possible. We’re an online insurance brokerage that helps small business owners like you to find and compare policies from trusted insurers.

Our thousands of customers trust us to protect their growing businesses, which has made us one of the fastest-growing online providers of small business insurance.

So why choose Simply Business?

  • We’re fast and affordable. In the time it's taken you to read this guide, you’ve probably had a call, text, or email (or all three). That’s why we’re focused on helping you find and compare personalized quotes in just a few minutes.

  • We’re flexible with coverage. We’re here to help as your business evolves. Get your certificate of insurance, cover new employees, and more.

  • We get your business. You deserve better than one-size-fits-all insurance. Get personalized protection for your clothing store when you need it the most.

Your friends and customers trust your taste and advice, and we know you’ll make the right decision for your business.

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This content is intended to be used for informational purposes only. It is not intended to provide legal, tax, accounting, investment, or any other form of professional advice.

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*Harborway Insurance policies are underwritten by Spinnaker Insurance Company and reinsured by Munich Re, an A+ (Superior) rated reinsurance carrier by A.M. Best. Harborway Insurance is a trade name of Simply Business, Inc., which is a licensed insurance producer in all 50 states and the District of Columbia.

© Copyright 2020 Simply Business. All Rights Reserved. Simply Business, Inc. is a licensed insurance producer in all U.S. States and the District of Columbia. Simply Business has its registered office at Simply Business, 1 Beacon Street, 15th Floor, Boston, MA, 02108. In the state of California, we operate under the name Simply Business Insurance Agency, Inc., License #0M20593. In the state of New York we operate under the name Simply Business Insurance Agency. In the state of Texas we operate under the name, U.S. Simply Business, Inc. For more information, please refer to our Privacy Policy and Terms & Conditions.