Retail Store Insurance Cost & Coverage Guide

Q: What is retail insurance?

Retail insurance is a suite of policies designed to protect your store from the financial consequences of customer accidents, property damage, employee injuries, and lawsuits. Without the right coverage, you could be personally responsible for paying for costly legal fees, medical bills, and inventory replacement.

Q: What affects the price the most for retail shops and stores?

The biggest factors are your store's type (e.g., a jewelry store has different risks than a clothing boutique), the value of your inventory, your store's square footage and location, the number of employees and payroll, your claims history, and your chosen coverage limits.

Q: Is it tax deductible?

Yes — insurance premiums are usually considered a business expense. But for certain, always check with your accountant.

Q: Why do I need retail business insurance?

Whether it’s customers slipping and falling; employees getting hurt; or your store being damaged, unexpected, and unwanted events can happen. Having proper insurance can help financially protect you from paying thousands of dollars to settle a claim, repair damage, or defend yourself in court.

Q: Is it required by law?

Whether you need coverage depends on your state and if you have employees. But even if it's not required, we recommend getting insured to financially protect your business. And in some instances, it may be required to lease your store space.

Q: Can I reduce cost without cutting coverage?

Yes. You can often save money by bundling policies into a BOP, choosing a higher deductible that you can comfortably afford, and installing safety features like alarm systems and sprinklers. Maintaining a good safety record with no claims also helps keep your premiums low.

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Retail Store Insurance Cost

Running a retail store means managing everything from inventory and employees to the customer experience. But what about the unexpected? A customer slipping on a wet floor, a power surge damaging your POS system, or an employee getting injured in the stockroom can lead to thousands of dollars in costs that could put your business at risk. Retail business insurance is your financial safety net, protecting your shop from the day-to-day risks so you can focus on serving your customers.

This guide will break down the essential insurance coverages for retailers, what they typically cost, and how you can get the right protection for your shop. We’ve got you covered.

How Much Does Retail Insurance Cost?

The cost of retail insurance varies, but most store owners pay a median price of $50 per month, or about $590 per year, for a policy package. Your final premium will depend on many factors, including your store’s size and location, your inventory value, whether you have employees, and your claims history.

Here’s a look at the median costs for the most common policies retail businesses purchase:

Insurance Policy	Median Monthly Cost	Median Annual Cost
Business Owner’s Policy (BOP)	$59	$704
General Liability	$41	$495
Workers’ Compensation	$109	$1,305

¹Data from Simply Business customers specializing as “general merchandise store” who purchased at least one or a combination of general liability, business owners policies, or workers’ comp from July 1, 2024 to December 31, 2024. Reflected price tiers may not include purchase of all available policies under retailer insurance.

The prices we’ve shown are based on actual policies our customers bought. But getting a great deal isn’t just about the numbers. It’s also about working with someone who gets your business. And because we work with a range of trusted insurers, you’ll see coverage options to match your business, so you can choose a customized package that works for you and your budget.

What Insurance Does a Retail Business Need?

Most retailers need a combination of the following coverages to be fully protected from common risks.

Workers’ comp

If you have employees—even just one part-timer—most states require you to carry workers’ compensation. This policy covers medical bills and lost wages for employees who get injured on the job.

Why You Need It: An employee strains their back while lifting a heavy box of inventory in the stockroom. Workers’ comp can cover their doctor’s visits and a portion of their lost wages while they recover.

Median Cost: $109/month

Business Owner’s Policy (BOP)

A BOP is the most common starting point for retailers. It bundles General Liability and Commercial Property insurance into one affordable policy. This protects against customer accidents, damage to your building, and loss of your inventory and equipment.

Why You Need It: A power surge during a storm fries your point-of-sale (POS) system and ruins your refrigerated inventory. The property damage portion of your BOP can cover the cost to replace the equipment and spoiled goods.

Median Cost: $59/month

General liability

If you don’t get a BOP, this is the foundational policy you need. It covers costs related to accidents and injuries to customers or damage to their property.

Why You Need It: A customer slips on a recently mopped floor near your store’s entrance and breaks their arm. General liability insurance can cover their medical bills and your legal fees if they sue.

Median Cost: $41/month

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More Retail Insurance FAQs

What is retail insurance?

What affects the price the most for retail shops and stores?

Is it tax deductible?

Why do I need retail business insurance?

Is it required by law?

Can I reduce cost without cutting coverage?

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