Pennsylvania Retail Store Insurance (PA) – policies and cost

Retail store Liability Insurance in Pennsylvania  – (PA), 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 Pennsylvania? 

But first, a retail store should not to be mistaken for a shop. There are many workshops that include the word shop in their name, like auto body shop that are not selling products, but provide services to the public.

The latter mostly has some sort of registered license, and so they need to buy their own liability insurance in PA. A cashier in Pennsylvania is likely to be younger than the average for the state, and to earn less than the average for Pennsylvania.

Retailers deal in public to sell merchandise to other businesses for household consumption and so need Small Business insurance in Pennsylvania to cover all possible risks.

Retail Store Insurance in Pennsylvania

General statistics

About 6% of the total labor force in Pennsylvania was engaged in the retail sector in 2020. 

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

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

General liability insurance.

The normal general liability policy for retail stores in Pennsylvania covers a total of $2 million for the whole year, with a upper limit of $1 million for a single submission.

Professional liability insurance

Every retailers in Pennsylvania will see the need for a policy of at least $10000, and many choose much more when their own type of business warrants it. In some cases, the insurance company in Pennsylvania gives a bonus to include a deductible of a few hundred dollars, to stop the nuisance of frivolous claims.

Product liability insurance

The recommended level of cover in PA, is calculated on the type of inventory that the store provides as well as the level of sales.

Commercial vehicle insurance

Immediately after goods leave your premises in Pennsylvania, your standard insurance stops cover. If you are doing your own distribution with a truck, then you need specific policy giving you commercial vehicle insurance in Pennsylvania 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 Pennsylvania is especially designed to take into account the risks that can end up costing you a lot of money.

Property insurance

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

As well, the possibility of floods is increasing because of climate change, so every shop owner 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 PA, that have hit retail businesses hard. It is clever to get proper cover 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 Pennsylvania

Although every retail business is unique, there are enough examples of average quotes from insurance companies in Pennsylvania 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 Pennsylvania.

Types of insurance Price range
Property insurance $1078 – $3605
Commercial vehicle insurance $1575 – $2995
Business income insurance $308 – $1354
Public liability insurance $397 – $779
Commercial insurance $925 – $2454
General liability insurance $480 – $1487

Cost of insurance in Pennsylvania depends on many different factors

Please remember that the above figures are based on averages for small retail businesses. The size and location of your business in Pennsylvania 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 different risk of theft than a florist conducting Pennsylvania 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 Pennsylvania?

Every retailers in PA, will have to have at least some insurance, covering laws because they are dealing with the public, and also probably to qualify to be permitted to register with a business license in Pennsylvania . As well, insurance in Pennsylvania is especially designed to take into account the risks 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 title “shop” in their definition, but don’t really act as retailers.

For example:

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

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

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

Where to find the right insurance?

In every city in Pennsylvania 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