Operating a consignment store requires a significant investment of both time and finances, and the resources that are poured into a store ought to be protected. Consignment store insurance helps financially protect consignment stores in Massachusetts from a variety of risks.
Consignment store insurance is a specialized form of commercial insurance that’s intended to meet the unique risk mitigation needs of consignment stores and similar retail businesses. Because these stores are exposed to multiple risks, policies are usually written as package policies that combine several individuals coverages together.
There are many retail businesses in Massachusetts that might benefit from the protections that consignment shop insurance offers. Broadly speaking, most for-profit stores that resell pre-owned merchandise ought to consider this type of insurance. Some specific stores that might want a consignment store policy include:
Businesses that are unsure whether this or another type of insurance is right for them should speak with an insurance agent who’s familiar with consignment shop insurance. A specialized agent will be able to review a retail business’ operations and make an informed policy recommendation based on the store’s unique situation.
While the exact protections that consignment shop insurance policies make available can vary, there are many coverages that policies commonly offer. For instance, lots of policies include the following coverages as standard or optional protections:
Additionally, retail businesses that provide pickup and/or delivery services may also need commercial vehicle coverage for their vans or trucks. This coverage is available as an optional feature in most policies.
Bailee coverage is a specialized protection that’s akin to commercial personal property coverage but usually protects goods sold on consignment rather than inventory that a store has already purchased. In most cases, bailee coverage protects consigned goods up to their fair-market value.
Most consignment store policies offer bailee coverage, although the coverage might be included as an optional protection rather than a standard one.
Insurance companies take many different factors into account when setting premiums for consignments stores, and rates for these policies vary substantially as a result. Even with variance, though, policies tend to be quite affordable. They’re almost certainly more affordable than how much recovering from a major disaster with no protection in place could cost.
An independent insurance agent can help stores find out how insurance would cost them specifically. Independent agents are able to request quotes from several insurance companies, which makes it easy for stores to compare coverage options and rates.
For help insuring a consignment store or similar business that’s located in Massachusetts, contact the independent insurance agents at The Feingold Companies. Our agents have worked with many different second-hand retail businesses in the state, and they’re ready to help you find a consignment store insurance policy that has the coverages your store needs at a price that it can afford.