Retail Store Insurance Cost & Coverage Guide for 2026
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Retail Store Insurance
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:
Average Costs1
| 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 Typically Need?
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.
From
$38.91
/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.
From
$33.75
/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.
From
$20.75
/month*
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*The displayed price for each product is a monthly estimate calculated from the 10th percentile of relevant policies sold by Simply Business (e.g., General Liability data is used for General Liability estimates). This estimate uses data from relevant policy sales between July–December 2025. Final price and payment terms, which may include an initial down payment, are subject to change based on your state, selected insurance provider, and specific business details.
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