California Retail Store Insurance (CA) – policies and cost

Retail store Liability Insurance in California  – (CA), is an important type of insurance to have for any individual who conducts business selling to the public from street-front shops.

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If you’re a shop owner, you have to buy retail store liability insurance, and here’s why! 

What actions do retail stores do in California? 

But first, a retailer should not to be mistaken for a shop. There are many studios that include the word shop in their name, like repair shop that are not selling products, but provide work to the public.

The latter usually has some sort of registered license, and so they need to get their own liability insurance in CA. A salesperson in California is likely to be younger than the average for the state, and to earn less than the average for California.

Retailers deal in public to sell merchandise to institutional clients for group consumption and so need Small Business insurance in California to cover all possible risks.

Retail Store Insurance in California

General statistics

About 6% of the total labor force in California was working in the retail sector in 2020. 

Interesting fact – workers in CA are ten time more likely to find jobs in clothing stores than in florists.

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What are the regular forms of retail store insurance policy types in California? 

General liability insurance.

The average general liability policy for retail stores in California covers a total of $2 million for the whole year, with a cap of $1 million for a single submission.

Professional liability insurance

Every retailers in California will see the need for a policy of at least $10000, and most choose much more when their own sort of business warrants it. In some cases, the insurance company in California gives an incentive to include a deductible of a few hundred dollars, to stop the nuisance of ill-considered claims.

Product liability insurance

The standard level of cover in CA, is calculated on the type of products that the store provides as well as the volume of sales.

Commercial vehicle insurance

Immediately after goods leave your premises in California, your standard insurance stops cover. If you are doing your own deliveries with an auto, then you require special policy giving you commercial vehicle insurance in California for the vehicle, the driver and the contents.

Commercial insurance

Retail business depends on stock and a physical shop. This means investing your money into premises and goods, and you cannot afford to let this get damaged. Commercial insurance in California is especially designed to take into account the dangers that can end up costing you a lot of money.

Property insurance

California carries special risks when it comes to buildings, and any business must take out the necessary cover to protect property and contents. 

As well, the possibility of disasters is increasing because of climate change, so every merchandiser should take care to get all the protection necessary to cover even the most remote possibility.

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Business Income insurance

There has been a history of ups-and-downs in CA, that have hit retail businesses hard. It is advantageous to get proper insurance in place before such a calamity occurs, rather than to expect that you can never be hurt.

Average costs of these types of insurance in California

Although every business is unique, there are enough examples of average quotes from insurance companies in California for us to give rough guidelines. Of course, you should always check with an agent of what’s relevant for your business.

The below list is for annual premiums for the main types of insurance retailers need in California.

Types of insurance Price range
Property insurance $1090 – $3259
Commercial insurance $1072 – $2236
General liability insurance $455 – $1692
Commercial vehicle insurance $1674 – $3060
Business income insurance $418 – $1025
Public liability insurance $347 – $674

Cost of insurance in California depends on many different factors

Please be aware that the above figures are based on averages for small retail businesses. The size and location of your business in California can have a big impact on the cost, and also the type of trade and inventory will.

For Example – a liquor store on the high street has a much higher risk of theft than a babywear shop conducting California retail sales that is located inside a large mall, so the costs of the insurance will be very different.

FAQ section:

Do you need business insurance in California?

Most retailers in CA, will have to have at least some insurance, covering obligations because they are dealing with the public, and also probably to qualify to be allowed to register with a business license in California . As well, insurance in California is especially designed to take into account the occurrences that can end up costing you a lot of money.

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What is considered a retail store and what is not?

Some businesses use the word “shop” in their definition, but don’t really act as retailers.

For example:

  • dram shop
  • tire shop
  • machine shop
  • repair shop
  • auto repair shop
  • coffee shop
  • auto body shop
  • coffee shop
  • mechanic shop
  • tattoo shop
  • bike shop
  • body shop
  • motorcycle repair shop

A better classification would be if the business sells many of the following to the public:

  • Sport, recreation, and leisure goods.
  • Food and beverages as in supermarkets, liquor stores, fruit & vegetable grocers and specialty food stores
  • Specialty products for narrow sectors, like florists, jewellers.
  • Entertainment, communication, and technology goods.
  • General retail as in department stores and clothing retailers.
  • Home living and homeware, trade, and gardening goods.
  • Apparel like babywear, kids, women’s and men’s clothing.
  • Books, newspapers, magazines and office supplies.

Where to find the right insurance?

In every community in California you will be able to find a qualified insurance agent or broker that can advise you on your best options. Most independent brokers and agents work six days a week, with the following opening times.

Opening Hours:
Monday – 8:00 AM – 6:00 PM
Thursday – 8:00 AM – 6:00 PM
Wednesday – 8:00 AM – 6:00 PM
Thursday – 8:00 AM – 6:00 PM
Friday – 8:00 AM – 6:00 PM
Saturday – 7:00 AM – 1:00 PM
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