Party stores sell nearly every type of supply you could possibly need for a birthday party, wedding reception, bridal or baby shower, or any other event. This includes cups, plates, napkins, table cloths, banners, balloons, plastic cutlery, party hats, confetti, invitations and thank-you cards and various types of decorations. Most party stores rely on equipment to blow up balloons, therefore equipment breakdown is a significant risk. Theft and shoplifting are also major risks for party supply stores. Purchase insurance to cover these and other risks you’re exposed to.
Types of Party Store Insurance
Below you will find the most common types of business insurance policies for party stores. Each policy will cover a different range of risks, therefore you should consider purchasing more than one.
Your party store is at risk for a variety of liabilities and should therefore have general liability insurance. Some of the smaller items you carry are choking hazards for small children, not to mention the injuries that could occur from slipping on a newly waxed floor. All of these injuries can be covered by general liability insurance.
Business auto insurance should be purchased if you use a vehicle for business errands such picking up inventories or making deliveries to your customers. For instance, if you provide deliveries to parties for balloons or other supplies, your trip should be covered by business auto insurance. This ensures any accident causing bodily injury or damage will be covered.
Unexpected events can’t be prevented, but you could avoid financial struggle by having proper coverage. Your business property is at risk from events like extreme weather conditions, natural disasters, and fire. A fire in your building could destroy your merchandise and natural disasters can damage your building structure. Protect these types of events with business property insurance.
Products liability is a very important policy to have for your party supplies store. The products you sell could potentially cause loss or damage to your customer including property damage and bodily injury. This may be due to factory or manufacturing issues, defective products, or chemicals used that cause illness or allergic reactions. If you fail to inform the customer of certain warnings and it isn’t clearly labeled with the warning, some items could harm them and they can sue you for damages. Products liability will protect you from such lawsuits.
Operating a store online is par for the course for many retail businesses these days, and a party store is no different. Therefore, if you also operate an online party supply store, you should get a separate insurance policy to protect against cyber crimes. Cyber liability insurance will offer coverage if a dishonest individual hacks into your website, steals personal and financial data, or causes other types of damage. This helps to cover money lost and helps to pay for damages caused to your customers.
Worker’s compensation protects your employees from work-related injury or illness. An employee could suffer a back injury from picking up heavy boxes of party supplies, slip on spilled confetti in the back room, or fall off a ladder when reaching items on a high shelf. Any injuries an employee experiences while at work will be covered by worker’s compensation; this includes medical costs, recovery and rehab, and lost income while they’re out of work.
Your party store is at a high level of risk for shoplifting and theft, whether from customers, people posing as customers, and your very own employees. Even with advanced security measures such as surveillance equipment, some individuals can get around them. To protect your business from crimes like theft, shopliftings, and vandalism, get a crime insurance policy that covers these crimes.
Now that you understand the wide range of risks you have, you will be able to make a wise choice in purchasing party store insurance. You can’t prevent unexpected events, but you can cover the costs with the right types of insurance.