Retail stores in South Carolina come in all shapes and sizes, and sell any kind of product imaginable. But what they all have in common is a need to protect their assets and their financial viability for the long term. 

You can do everything in your power to run a successful and profitable retail store. But when something like a fire, a tornado, or a burglary damage or destroy your store, ruin your inventory, and force you to close while you get back on your feet, where would you turn to help you with all of the expenses?

And if you’re ever sued for some kind of negligence, the costs to defend yourself or pay damages to an injured party can be worse than if your whole building is destroyed by a fire.

That’s why you need South Carolina retail insurance. It offers peace of mind and financial protection when you need it most. 

What is Retail Insurance?

South Carolina retail insurance pays for covered claims so you don’t suffer financial losses when something goes wrong. Depending on your coverage, it can help you pay for property damage, liability claims, and even worker injuries and illnesses. 

Retail insurance is not a single policy. Rather, it’s a set of individual policies that together offer comprehensive coverage for your retail business. A typical retail insurance package in Colorado will include basic property and liability coverage, as well as several other policies or endorsements that offer tailored coverage for your unique situation and risk exposures.

What Does Retail Insurance Cover in South Carolina?

Property losses and liability claims are the biggest threats to your South Carolina retail store. Your retail insurance should cover many of your property and liability risks. 

Retail Property Insurance

Property losses can come from fires, severe weather, theft, and other crimes. When these kinds of events happen, you can also face loss of income if the damage renders you unable to operate or meet sales goals for a period of time while you make repairs, rebuild your store, or replace lost inventory. 

Commercial property insurance is your lifeline in these situations. It covers damage to a building (the structure) and its contents (computers, office equipment and furniture, inventory, artwork, display shelves, supplies, fixtures, etc.) if it is damaged by a weather event, fire, theft, vandalism, and other covered perils. If you rent your space, you’ll need coverage to protect any improvements you make to the space and it’s contents, but you won’t need coverage for the building itself. The building would be covered by the landlord’s property insurance. 

You also need business interruption insurance to complement your property coverage. Imagine you have a period of interruption due to a covered loss (e.g., fire, weather, theft) during your peak season — say, over Thanksgiving weekend or during the month of December. You might never recover the lost sales or be able to reopen for another season. 

But business interruption coverage, or business income coverage, protects your earnings if your business is unable to operate because of damage caused by some type of disruption (fire, hail, wind, equipment breakdown). This coverage is usually quite affordable and pays for rent, employee salaries, lost income, relocation fees, and more. 

Retail Liability Insurance

You might not think that your store is teeming with danger. But customers and members of the general public can get injured on your premises in a variety of ways, from slipping on a wet floor to hitting their head on a fixture or being hit by a falling display. Injuries can range from a turned ankle to a concussion — or worse — and you are responsible for compensating the injured party. 

Medical bills and other related expenses are a lot to cover for a small business. And they’re just the tip of the iceberg if you are sued. Then you’ll be on the hook for attorney fees, court costs, and any settlements you have to pay. 

That’s where your retail commercial general liability insurance comes in. It offers broad coverage for a variety of liability claims, and pays for expenses for the injured party as well as your legal expenses and settlements or judgments if you are sued. 

Many small business owners purchase a business owners policy (BOP), which packages property, liability, and business interruption coverage into a single, affordable package policy. 

Other Retail Insurance to Consider

Most retail stores in South Carolina will need several other types of coverage to ensure that you are protected from all of your risks. You can purchase endorsements (add-ons to your basic policies) or stand-alone policies as needed to fill all of the gaps. 

• Crime coverage pays for loss of inventory due to theft of merchandise from shoplifting, and even for loss of money and merchandise stolen by employees. 
• Commercial umbrella insurance provides an important safety net for cases when a claim exceeds the coverage limit on your general liability policy. If you were hit with an extremely costly lawsuit, this policy would kick in when the coverage on your general liability policy is exhausted. 
• Workers’ compensation insurance is required for any South Carolina employer who regularly employs four or more full-time or part-time workers. It compensates employees who are injured on the job by paying for medical expenses and lost wages related to their injury. Your employees can trip over racks, injure their backs while unloading shipments, fall off ladders, and more. This coverage ensures their expenses will be covered in these cases, and prevents them from suing you for additional damages. 
• Cyber liability insurance is important for any business that uses, transmits, or stores electronic data. If you sell products online in addition to your brick-and-mortar store, this coverage becomes essential. It pays for any costs related to a cyber breach as well as any related legal costs if a customer or supplier who was harmed by the breach sues you. 
• Commercial auto insurance is required for all business-owned vehicles in South Carolina. This insurance can cover everything from liability lawsuits to the potential loss of income that may occur if your business is left without its necessary mode of transportation. 
• Employer’s liability insurance covers you if a current or former employee sues you for discriminatory employment practices.

What Does Retail Insurance Not Cover in South Carolina?

Your basic commercial property and commercial liability policies spell out a variety of specific coverage exclusions, and it’s important for you to be mindful of all of them.

In many cases, the excluded property or situation can be covered with another policy or special endorsement (many of which are described above). If, for example, your general liability policy limits coverage for cyber liability claims but you have a serious cyber exposure, you can purchase a cyber liability insurance policy or endorsement in addition to your other retail insurance policies. 

Here are some typical exclusions from basic retail insurance policies:

• Pollution liability
• Claims resulting from damage to the property of others that is in the care, custody, and control of the business 
• Product recall liability 
• Any legal actions that do not involve a claim for bodily injury, property damage, personal injury or advertising injury 
• Most contract disputes
• Actions by a governmental agency related to failing to follow regulations
• Claims for back taxes 
• Failure to provide a safe workplace/employee injuries
• Professional negligence or errors and omissions
• Employer’s liability claims
• Flood or earthquake damage
• Damage to certain property, including money, security, accounts, and bills; vehicles, aircraft, and watercraft; walkways, roads, and other paved surfaces; electronic data; cost of restoring information on valuable records

Most of these exclusions can be covered with some other type of insurance policy or endorsement. But remember, no policy will ever cover you for intentional wrongdoing or criminal acts. 

What Are the Benefits of Insuring My South Carolina Retail Business?

Something as simple as a wet floor on a rainy day can send your South Carolina retail store down the road to ruin. If a customer slips and falls in your store, a seemingly minor injury can bankrupt you after you’ve paid for medical expenses and other damages for the injured party. If the injured customer sues you, the costs to defend yourself and pay out a settlement can be devastating. 

A variety of other mishaps can turn into a disaster as well. Shoplifting can take a huge bite out of your bottom line over time. Problems with your computer system can leave you unable to process sales during critical times. Worker injuries, employee theft, cyberattacks, fires, and severe weather can all wreak havoc on your store and your ability to operate. 

But with appropriate retail store insurance, you’ll have somewhere to turn. Insuring your retail store benefits you exponentially. You’ll be able to pay for property and inventory repairs and replacement, and you’ll be able to hire an attorney and pay for damages if you’re ever sued for negligence. 

And the benefits of retail insurance don’t end there. Retail insurance gives you the peace of mind you need to focus on running your business and earning a profit. And it provides the financial backup you need to continue to operate even in the worst of times. 

Can I Afford Retail Insurance in South Carolina?

There are a lot of variables that impact the cost of South Carolina retail insurance. 

A single-location retail store might spend around $500 to $1,500 per year on general liability coverage alone. 

But this is a broad estimate and does not include property coverage and any other types of policies or endorsements that you might need to fully cover your risks. 

In addition, a variety of individual risk factors will influence how much you pay to cover your South Carolina retail store. These include the location of your store, the number of employees you have, how much inventory you keep on hand, whether or not you own your building, and the coverage limits and deductibles that you choose. 

Even things like the crime and weather risks in your city will play a role. It’s important to work with an independent insurance agent who can get retail insurance quotes from multiple insurance companies in South Carolina. Independent agents aren’t tied down to a single carrier, so they can help you find the best coverage for your unique needs and budget. 

Do I Need an Agent to Purchase Retail Insurance in South Carolina?

While it’s possible to purchase retail insurance directly from an insurance company, and online quotes are certainly tempting as well, you might not get the tailored policies and personal service and advice that best serve your business needs. 

Captive insurance company agents might not have the local expertise and understanding of your business that a local, independent agent might have. And they can only offer quotes from a single carrier, leaving out many options that might be better suited for your business.

And online quotes can’t and don’t see the whole picture. They can omit important coverage that will leave you holding the bag if something unexpected happens. And you might lose out on valuable cost-saving opportunities that an agent can help you take advantage of. 

It’s best to work with an independent insurance agent with the knowledge, experience, and confidence to help you develop a comprehensive retail insurance program. A local independent agent can help you find the best policies to suit your unique needs and budget requirements, not a one-size-fits-all approach that could fail to protect you when you need it most. 

Find an independent insurance agent who is an expert in working with retail stores and finding the best insurance solutions that help limit your exposures and protect you business.