Hobby shops, also called hobby stores, provide customers with a wide range of games, toys, hobby supplies, and craft supplies. With merchandise ranging from model airplanes and train tables to vintage dolls to board games, these shops have something for everyone. If you have chosen to own and operate your own hobby shop, it is a fun experience. But, keep in mind the risks of having a hobby shop, such as flammable items increasing the risk of fire, or customers getting injured in your store. Cover these risk exposures by choosing hobby shop insurance that will prevent financial burden.
Types of Hobby Shop Insurance
There are a potpourri of risks you should be aware of when choosing business insurance. Read through the following types of insurance for hobby shops to cover all the bases.
General liability insurance is a basic insurance policy all businesses should have. It covers a variety of risks including completed operations, products liability, and bodily injury. If you have a customer come into your hobby shop who then gets injured by a set of toys that fall from one of your shelves, general liability covers the damages to the customer. It will also pay for associated legal and court costs.
Business Owners Policy
If you want to choose an insurance policy for your hobby shop that combines multiple coverages, get a business owner’s policy. Also called a BOP, business owner’s policies will be customized according to what you want covered. Choose from general liability, building and contents, electronic data, newly acquired buildings, crime insurance, business interruption and expenses, and more. If you feel your business is at risk of shoplifting and general liability, the BOP can include both of these coverages.
With your hobby shop, property insurance is highly recommended. Damage done to your property, including its contents, will be afforded coverage by this insurance policy. For example, if you live in an area that is prone to tornadoes, one hitting your building can cause significant damage to your building. If you have property insurance, the repairs and replacements of goods are covered by the insurance policy, so the cost isn’t coming out of your own pocket.
Commercial Auto Insurance
Commercial auto insurance is essential for any business using a vehicle for business purposes, such as using a vehicle to pick up a new collection of craft supplies for your hobby store. In this case, you can either use your own vehicle where you will have non-owned or hired auto insurance, or rent a van for larger items, in which case you need hired auto insurance. Non-hired insurance is used any time a vehicle is used that is registered to you or an employee. On the other hand, hired insurance is for rental trucks or vans.
One of the biggest risks to owning a hobby or game shop is the risk of shoplifting. It is best to protect your store with security equipment, but that won’t prevent it entirely. Crimes such as shoplifting or theft, even by employees, should be protected with crime insurance. If you have a customer who lifts a set of antique board games from your hobby shop, you can’t replace the games but you won’t suffer financially because crime insurance will offer financial protection again these types of crimes.
Worker’s compensation insurance is vital for any business owner as it protects your employees. If one of your workers is stocking shelves in the back room and a heavy chess table falls on their head causing an injury, medical treatments will be covered by worker’s comp. It is not only a good idea to obtain worker’s comp for your employees, but it is required by law in most states.
Hobby shops can be a lively and pleasure-filled experience for anyone with a passion for different hobbies, but without proper insurance it can be a big burden as well. Purchase extensive hobby shop insurance policies to give your shop the best protection available.