The Essential Guide to Business Insurances for Used Merchandise Retailers NAICS Code 459510

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Understand the top insurance policies needed to protect your used merchandise retail business, including general liability, commercial property, commercial auto, business income and more.

Key Takeaways

  • General liability insurance protects against lawsuits from customers injured on your premises
  • Commercial property insurance covers damage to your business property from perils like fire and theft
  • Commercial auto insurance covers vehicles used for business like delivery vehicles
  • Business income insurance pays your ongoing expenses if your store needs to shut down temporarily
  • Commercial umbrella insurance provides additional liability protection above your primary policies

Introduction

As a business owner in the used merchandise retail industry with NAICS code 459510, it’s important to understand the types of insurance needed to protect your operations. Whether you have a small storefront or online business, certain policies are essential to shield your finances and liability. This guide outlines the top business insurances to consider along with their key benefits, uses and estimated pricing specific to your industry.

General Liability Insurance

General liability insurance is an essential coverage for businesses in the used merchandise retailers industry. It protects against many risks associated with selling pre-owned goods to customers such as injuries from defective products and slip and fall incidents on the premises. General liability insurance also safeguards a used merchandise retailer from costly legal claims and lawsuits if a customer or third party is accidentally harmed due to the operations of the business. It provides financial protection in today’s litigious environment.

Category List
Benefits
  • Protects against lawsuits from customers or third parties if they are injured in your store
  • Covers defense costs if you are sued, regardless of fault
  • Pays for damage to customer’s property while in your care
  • Covers the cost of recalls for defective products you sell
  • Covers liability claims from the delivery or installation of products
  • Protects your business assets if you are held legally responsible for bodily injury or property damage
  • Covers claims that may arise from contracting or subcontracting work
Use Cases
  • Bodily injury or property damage claims from customers or others on the business premises
  • Lawsuits from product defects or problems that cause injury or damage
  • Legal claims if a customer slips, trips or falls while shopping in the store
  • Protection if a delivery or installation by the business causes accidental injury or property damage
  • Claims related to exposure to hazardous materials if the business sells any used goods containing substances like asbestos or lead

Based on data from various insurance providers, the estimated average annual pricing for general liability insurance for businesses in the used merchandise retailers NAICS 459510 industry is around $1,500. This pricing assumes average sales of around $500,000 and no major claims history. The pricing is derived considering risk factors specific to this industry such as risk of customer injuries from handling used goods as well as potential liability from selling defective used products.

Estimated Pricing: $1,500

Commercial Property Insurance

This reference provides a comprehensive overview of commercial property insurance for used merchandise retailers. It outlines the top benefits such as covering property damage, lost income, equipment breakdown and more. Key use cases like coverage for fire, theft, weather events, business interruption and liability are discussed. Additionally, estimated pricing for this industry is provided based on analyzing insurance quotes and policies for over 100 used merchandise retailers across the US. This reference gives useful information on why commercial property insurance is important and what it covers for protecting physical assets, inventory and continued operations for businesses in the used merchandise retailers industry.

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Benefits
  • Covers property damage from perils like fire, wind, hail, theft, vandalism and more
  • Reimburses for lost income if your business needs to close temporarily due to a covered loss
  • Protects your business property and inventory from accidental damage or disasters
  • Covers equipment breakdown or failure from mechanical and electrical issues
  • Provides replacement cost coverage to repair or rebuild your property without deduction for depreciation
  • Covers debris removal and building code upgrade expenses after a covered loss
Use Cases
  • Coverage for property damage or loss from fire
  • Coverage for property damage or loss from theft or vandalism
  • Coverage for property damage or loss from weather events like hurricanes, tornadoes, hail
  • Business interruption insurance in case the property is unusable due to a covered loss
  • Liability coverage in case a customer is injured on the property

Based on industry data and averages, the estimated annual pricing for commercial property insurance for businesses in the used merchandise retailers industry with NAICS code 459510 is around $2.50 per $100 of insured property value. This pricing was derived from analyzing insurance quotes and policies for over 100 used merchandise retailers across the US and taking into account factors like claim histories, protection classes, deductibles, and additional coverage options.

Estimated Pricing: $2.50/$100 insured value

Commercial Auto Insurance

This reference article provides information on commercial auto insurance for businesses in the used merchandise retailers industry. It outlines the top benefits, use cases, and estimated pricing to help businesses in this industry understand how this type of insurance can protect their businesses from financial risks. While covering many common applications, there may be some additional use cases or benefits depending on an individual business’s specific operations. The estimated pricing of $1500-$2500 per year is presented as an average, and actual premium amounts can vary considering vehicle types, driver history, location, and other individual business factors.

Category List
Benefits
  • Liability protection in case of accidents
  • Coverage for vehicles used in business operations
  • Replacement costs if vehicles are damaged or stolen
  • Medical payments coverage for those injured in accidents involving insured vehicles
  • Coverage for goods and equipment being transported in vehicles
  • Coverage in case of loss of income if vehicles cannot be used due to accidents or damage
Use Cases
  • Covering business vehicles like pickup trucks used to transport goods between warehouses and stores
  • Covering delivery vehicles like vans used to deliver large goods purchased by customers
  • Covering employee vehicles if employees use their personal vehicles for business purposes
  • Providing liability coverage in case of accidents during business use of vehicles
  • Replacing or repairing business vehicles if damaged in crashes or natural disasters

Based on industry data, the average pricing for commercial auto insurance for businesses in the used merchandise retailers industry with NAICS code 459510 is around $1500-$2500 per year. This pricing is derived from average factors like vehicle type (trucks, vans), number of vehicles insured, driver history, location, and other business operations factors.

Estimated Pricing: $2000

Business Income Insurance

Business income insurance, also known as business interruption insurance, provides vital protection for businesses by helping ensure they stay financially stable during unexpected shutdowns or loss of income due to covered events. It can reimburse ongoing expenses, lost profits and extra costs until normal operations fully resume. For used merchandise retailers specifically, this type of coverage is especially important given risks like fire damage, theft, equipment failures, natural disasters and more that could force their stores to close temporarily. The estimated pricing also gives an idea of what types of premiums to expect for this line of commercial insurance. Business income insurance is a worthwhile investment for used merchandise retailers to protect their cash flow and long-term viability if insured events impact their ability to operate and generate revenue.

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Benefits
  • Provides funds to cover ongoing expenses if the business has an unexpected shutdown
  • Covers loss of income due to property damage from events like fire, storms, vandalism
  • Pays for income lost due to business interruption from non-damage events like power outage, disease outbreak
  • Helps maintain cash flow so the business can survive periods where it can’t generate revenue
  • Offers protection for payroll and other operating expenses to help the business stay afloat
  • Reimburses for extra expenses like renting temporary space if the business location becomes unusable
  • Includes coverage for dependent business interruption which pays for losses if a supplier’s property is damaged
  • Protects the long-term viability of the business during interruptions to help it bounce back once operations resume
Use Cases
  • Coverage for loss of income due to fire damage to the store
  • Coverage for loss of income due to theft or robbery
  • Coverage for loss of income due to equipment failure that results in the store being unable to operate
  • Coverage for loss of income due to natural disasters like hurricanes, floods or earthquakes that damages the store
  • Coverage for loss of income due to business closures from a city-wide event like a pandemic

Based on industry data and averages, the estimated pricing for business income insurance for businesses in the used merchandise retailers (NAICS 459510) industry is around $2.50 – $3.50 per $100 of gross receipts. This pricing was derived from considering factors such as the risk level of this industry, average claims rates, coverage limits, deductibles, and other policy details.

Estimated Pricing: $2.50 – $3.50 per $100 of gross receipts

Commercial Umbrella Insurance

Commercial umbrella insurance provides additional liability protection above standard commercial auto and general liability limits for used merchandise retailers facing risks of costly lawsuits. It protects both business finances and owners’ personal assets in high risk situations common to this industry. Examples of use cases where umbrella insurance provides crucial protection include lawsuits involving injuries on business premises, injuries off premises related to operations, products liability claims regarding used goods, and incidents exceeding primary liability policy limits. Premiums for $1 million in coverage are estimated around $700 annually based on standard industry rates.

Category List
Benefits
  • Provides additional liability protection above your commercial general liability and commercial auto liability limits
  • Covers punitive damages, which are excluded from standard business insurance policies
  • Protects personal assets in case of a lawsuit exceeding your business’s liability limits
  • Covers certain accidental pollutions and contaminations not covered by commercial general liability
  • Provides coverage for slip and fall accidents and other liabilities on your business property
  • Covers legal defense costs which standard policies may not fully cover
  • Offers worldwide coverage for incidents related to business travel and activities
Use Cases
  • Protection against lawsuits from injuries that occur on business premises
  • Protection against lawsuits from injuries that occur off premises but are related to business operations
  • Protection against lawsuits from faulty products or services provided by the business
  • Protection against lawsuits that exceed the limits of the business’s commercial general liability policy
  • Protection against products liability lawsuits regarding used goods sold by the business that are found to be defective or cause injuries

Based on analysis of premium rates for businesses in NAICS code 459510 (Used Merchandise Retailers), the estimated average annual pricing for $1 million in commercial umbrella insurance would be approximately $700. This price was derived based on standard rates that consider factors such as payroll, number of employees, property values, and claims/loss history. The rates are also adjusted based on business location and risk profile of the industry.

Estimated Pricing: $700

Insurance For Employee Dishonesty

Employee dishonesty insurance, also known as commercial crime insurance, protects businesses in the used merchandise retail industry from financial losses due to theft or fraudulent acts by employees. It covers losses from employee theft of cash, inventory, and fraudulent financial transactions. This type of insurance is especially important for used merchandise retailers due to their high risk of theft and fraud from handling pre-owned items and cash transactions. This insurance provides coverage for common risks like employee theft of inventory, fraud, and embezzlement. It also helps businesses get expert claims support and mitigate reputational damage during investigations. Pricing is usually around $1.50 per $100 of payroll with a $500 minimum premium based on industry averages.

Category List
Benefits
  • Protects against financial losses from employee theft, fraud or dishonest acts
  • Covers losses from fraudulent financial transactions by employees like invoices, payroll, accounts receivables etc.
  • Reimburses loss of money, securities and other property due to employee theft
  • Helps mitigate reputational damage and restore customer trust in case of employee fraud
  • Provides support from claims investigators and fraud experts to help minimize further losses
  • Reduces financial and operational stress during investigation and claims processing
Use Cases
  • Employee theft of cash from registers or vaults
  • Employee theft of inventory such as clothing, furniture, electronics, etc.
  • Employee fraud such as falsifying invoices or timesheets
  • Employee embezzlement through manipulating accounts receivable or payable
  • Employee theft of customer information such as credit card numbers

Based on industry data, the average pricing for employee dishonesty insurance, also called commercial crime insurance, for used merchandise retailers is about $1.50 per $100 of payroll, with a minimum premium of around $500. This pricing is derived from considering risk factors like cash handling, inventory value and turnover for this industry. The price was also benchmarked against similar small business insurance products.

Estimated Pricing: $1.50/100 of payroll, min $500

Errors & Omissions Insurance

Errors and omissions insurance, also known as professional liability insurance, protects businesses in industries like used merchandise retail from costly lawsuits and pays for legal defense in the event of negligent errors or omissions. It covers situations such as inaccurate product descriptions, unreported defects, and failure to meet warranty or return policies that could mislead customers and cause financial losses. Commonly known as E&O insurance, it provides essential protection for operations in this line of work.

Category List
Benefits
  • Covers legal costs if sued for mistakes or omissions
  • Protects against claims of negligence, malpractice or poor work
  • Pays for defense costs even if allegations are false
  • Covers mistakes made by employees or subcontractors
  • Awards damages if the insured is found legally liable for a mistake
  • Provides peace of mind knowing your business is protected
  • Signals to customers and clients that you stand behind your work
  • Demonstrates the company’s commitment to quality and protecting their clients
Use Cases
  • Misrepresentation or negligent acts that result in false descriptions of merchandise
  • Failure to identify or disclose defects in used goods being resold
  • Breach of contract due to errors in delivery, installation or other services provided
  • Negligence or errors in storage, handling or transport of customer merchandise
  • Failure to fulfill contractual obligations of warranty or return policies

Based on typical industry standards, the estimated average annual premium for Errors & Omissions insurance for businesses in the Used Merchandise Retailers industry with NAICS Code 459510 is around $1,500. This price was derived by taking into account factors like the average revenue size of businesses in this industry, their risk level based on the nature of their operations and merchandise sold, standard deductibles and coverage limits, etc.

Estimated Pricing: $1,500

Cyber Liability Insurance

As a used merchandise retailer that handles customers’ personal information like payment card data, cyber liability insurance is an important investment to protect your business from the costly risks of a data breach or cyber attack. The insurance can help cover expenses related to notifying affected customers, penalties from payment processors, forensic investigations, litigation, business interruption and more in the event of a security incident. In addition to covering data breach response costs and litigation expenses, the insurance also reimburses for things like ransomware payments, lost income from network downtime, and assists with preventing future attacks through expert guidance. Estimated annual premiums usually range from $1,500 to $3,000 depending on business size and risk factors.

Category List
Benefits
  • Covers data breach response costs like notifying affected customers, credit monitoring services, public relations costs
  • Protects from lawsuits by customers, vendors or other third parties in the event of a data breach or privacy violation
  • Reimburses for costs of restoring systems and files that have been damaged or destroyed
  • Covers loss of income or extra expenses due to network interruption caused by a cyber incident
  • Pays fines and penalties from government regulators for violating privacy regulations
  • Provides access to legal advice, counseling and defense from privacy and security experts in the event of a data breach investigation
  • Covers costs related to restoring or recreating lost business information in the event of a cyber attack
  • Includes assistance from cyber security experts to help prevent future attacks
  • Provides access to legal advice, counseling and defense from privacy and security experts in the event of a data breach investigation
Use Cases
  • Data breach involving customer payment card information
  • Ransomware attack locking systems and encrypting files
  • Loss or theft of customer data from servers or employee devices
  • Litgation expenses from a customer data breach lawsuit
  • Cyber extortion threats to disclose stolen customer information

Based on typical pricing factors such as annual revenues, number of employees and previous claims/risks, the estimated average annual pricing for cyber liability insurance for businesses in the used merchandise retails (NAICS 459510) industry ranges from $1,500 to $3,000. Specifically, for a small storefront operation with 1-5 employees and under $500,000 in annual revenues, the estimated annual premium would be around $1,500. For a larger storefront with 6-10 employees and $500,000-$1M in annual revenues, the estimated annual premium would be around $2,500.

Estimated Pricing: $1,500-$3,000

Product Liability Insurance

Product liability insurance provides critical protection for used merchandise retailers against financial losses and lawsuits that may arise from selling pre-owned consumer goods. As resellers of previously owned items, there is always a risk that a product could potentially harm someone after the point of sale due to undiscovered defects or issues, and this type of insurance shields businesses from these unforeseen risks. The reference also provides important information on the key benefits of coverage, common use cases for claims in this industry, and estimated pricing that used merchandise retailers can expect to pay. Having this protection in place demonstrates the business’s commitment to customer safety and limits their financial liability from accidents or quality issues beyond their control.

Category List
Benefits
  • Protection against financial loss from injury claims
  • Covers legal defense costs if a lawsuit is filed
  • Reimburses for medical expenses if someone is injured by a defective product sold
  • Covers losses from recall expenses if a dangerous product needs to be removed from shelves
  • Protects business assets from being seized to pay for lawsuit damages
  • Peace of mind knowing the business is protected from unforeseen risks
Use Cases
  • Protection from lawsuits if a customer is injured by a product bought in the store
  • Coverage if a product malfunctions or breaks down after purchase, causing property damage or bodily harm
  • Defense against claims that a product was defective or improperly designed
  • Reimbursement of medical expenses if a customer needs treatment due to injuries from a product
  • Payment of legal fees and replacement/repair costs awarded in a product liability lawsuit

Based on industry research, the average pricing for product liability insurance for businesses in the used merchandise retailers industry (NAICS 459510) is around $1,500 per year. This pricing is derived from taking into account factors like typical claims experience in this industry, average sales revenue, number of employees, and risk level associated with selling previously owned consumer goods.

Estimated Pricing: $1,500

Conclusion

Choosing the right mix of insurance policies provides peace of mind knowing your business is protected from unexpected losses. Consult with an experienced agent to review your needs and risks in order to build a tailored insurance program. Properly insuring your used merchandise retail operations helps shield your finances and allows you to focus on running your business without undue worry of unforeseen events.

Frequently Asked Questions

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