For-profit second-hand stores
Commercial Personal Property Coverage
General Liability Coverage
Running a thrift store in Massachusetts requires a substantial investment, and the resources poured into a store ought to be protected. Thrift store insurance helps protect these stores and the investments made in them from a variety of risks that the stores face.
Thrift store insurance is a specialized kind of commercial insurance that uniquely meets the risk mitigation of thrift stores and similar businesses. Policies are generally package policies that come with several coverages, which create a network of protections.
Several different kinds of businesses may benefit from the protections that thrift store policies afford. Generally speaking, most any business that sells second-hand items might want a policy. Some examples of such businesses include:
Even though many of these businesses aren’t thrift stores in the traditional sense, the risks they face are often similar to those that thrift stores are exposed to. Thus, thrift store policies can frequently be adapted to their needs.
Other businesses that sell pre-owned or used goods can discuss their particular situation with an insurance agent who specializes in these types of policies. An informed agent will know whether this or some other commercial policy is more appropriate for a given business.
Stores are typically able to adjust the coverages in their particular policy, so exact protections can vary from one policy to another. There are, however, many coverages that these policies make available:
Stores that offer pick-up and delivery services might also need commercial auto coverage for company-owned vans or trucks. Many policies include this as an optional protection.
Whether a thrift store policy covers goods sold on consignment generally depends on whether the policy includes bailee coverage. This is akin to commercial personal property coverage, but it’s specifically for goods that a store sells on behalf of others.
Some policies include bailee coverage as a standard part of their commercial personal property protection, and others offer it as an add-on option. A few policies might not provide this coverage.
Most policies that do include bailee coverage only provide actual cash value protection for consigned goods. This level of protection typically reimburses for covered losses up to the fair-market value of the goods. Replacement cost protection, which usually pays to replace an item with a new one, tends to give more protection and may be available for store-owned inventory.
Many thrift stores have employees and, per Massachusetts law, are required to carry workers compensation coverage. Workers compensation, however, is normally procured via a separate policy that stands on its own.
Even though it’s frequently bought separately, agents who are familiar with thrift store policies likely can also assist in securing a workers compensation policy
For help insuring a thrift store or similar business in Massachusetts, contact the independent insurance agents of The Feingold Companies. Our agents are able to request quotes from multiple insurance companies in the state on your store’s behalf, and they have the expertise necessary to help you select the best available thrift store insurance option.