Retail businesses face unique risks. They’re not just dealing with an abundance of people that passes through their establishments. They could also have large sums of cash tucked away in inventory or other properties on the premises or warehouses.

It means that you don’t just are liable for the premises when a person is injured at your shop or in the parking lot as well. Still, you also run the chance of damage to the property you’ve put to the point of depreciation.

Additionally, suppose you sell a product that damages the customer. In that case, you may be involved in a lawsuit for product liability against the consumer and the product manufacturer.

The positive side is that a few commonly used insurance policies can provide coverage for these situations at an affordable price. The best part is that coverage for retail firms isn’t challenging to locate, and it’s pretty easy to obtain coverage.

The guidelines for being a retail entrepreneur are as follows:

General Liability

Every retail enterprise should have an insurance policy for general liability. The procedure will take care of most liabilities you must deal with as a business owner. It is composed of three sections:

  • Premises Liability
  • Products Liability
  • Personal and Advertising Injury Liability

Property Insurance

Some retail stores do not have vast sums of money in their inventory. In addition to losing funds on property in the event of a disaster, you also lose money on profits it could have brought in.

Here are some of the most basic insurance policies for property to protect the assets your company owns:

  • Building Coverage
  • Business Personal Property
  • Tenant Improvements
  • Property of Others
  • Business Profit

Cyber Liability

You probably have cyber-security insurance to cover your online activities. If you use credit cards, rely on computers for regular commercial operations, or run an online store.

You’re exposed to the risk of a data breach if one or more clients suffer in the event of a violation. Additionally, each state has notification legislation that could force you to inform all of your clients about the breach and offer credit monitoring services for a while after it occurs. Both of these actions could incur astronomical costs.

Cyber liability policies transfer obligations arising from a cyber-attack to an insurance company to cover legal fees, fines, and other costs related to the cyber-attack.

Employment Practices (EPLI)

Retail is one of the industries with the highest levels of turnover of any industry, more than 60%. A high rate of turnover implies an increased risk of litigation involving employment. Suppose there are allegations of retaliation, harassment, discrimination, or even breaking state or federal laws about the workplace. In that case, every retail firm should know its high-risk position.

Workers Compensation

In most states where employees are, they must get covered by workers’ insurance for compensation. Workers’ compensation insurance is a way to protect all injuries that occur to employees working for your business. Alongside medical expenses, it also covers loss of wages when the employee recovers from injury and cannot work.


Retail businesses face the specific risk that insurance can address effectively. Although this list of insurance coverages isn’t exhaustive, it will give you the essentials that will cover most of the claims you’ll face as an owner of a retail shop.

If you want our knowledge to assist you in determining which policy is best for you and your company, contact Commercial Insurance Ottawa by phone at (613) 454-5640 or by email at