Key Takeaways
- Property insurance protects inventory, merchandise and assets from damage and theft
- General liability covers injuries to customers in store and protects from lawsuits
- Workers’ comp ensures employee injuries are covered medically and financially
- Commercial crime reimburses for theft including employee theft and robbery
- Business interruption funds ongoing expenses if store must close temporarily
Introduction
As a retailer that sells expensive and easily portable items like jewelry, leather goods, and luggage, protecting your business from risks is critical. Several types of insurance are especially important for this industry including property, general liability, workers’ compensation, commercial crime and business interruption coverage.
Property Insurance
Property insurance is crucial for businesses in the jewelry, luggage, and leather goods retail industry to protect their valuable inventory and assets. It provides coverage for risks like theft, fire, water damage, and business interruption due to covered property losses. Some key benefits of property insurance for these retailers include replacement cost coverage to fully restore property after losses and liability protection if a customer is injured in the store. Average pricing is around $3.50 per $100 of insured value due to the risk of theft and damage of high-value merchandise sold. Coverage options should be customized to the unique risks and needs of each business.
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Based on industry data, the average pricing for property insurance of businesses in the Jewelry, Luggage and Leather Goods Retailers industry with NAICS code 4583 is around $3.50 per $100 of insured value. This rate is calculated based on the high risk of theft and damage of the merchandise sold by these retailers. Jewelry especially is prone to risks such as robbery and requires careful storage and security. The rate may vary depending on business size, location, security measures and claim history.
Estimated Pricing: $3.50 per $100 of insured value
General Liability Insurance
General liability insurance is an important policy for jewelry, luggage, and leather goods retailers to protect their business from costly third-party claims and lawsuits. It covers both bodily injury and property damage that customers or others could experience on the business premises or through interactions with the retailer’s products and services. On average, retailers in this industry can expect to pay around $2,500 annually for general liability insurance. The policy also protects against lawsuits arising from errors in product recommendations or damaged customer goods being repaired in store.
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Based on industry analysis, the average annual pricing for general liability insurance for businesses in the Jewelry, Luggage, and Leather Goods Retailers industry with NAICS code 4583 is around $2,500. This estimate is derived from average premiums paid by small to medium businesses in this industry, accounting for factors like number of employees, average sales revenue, claim history, and risk level of goods sold.
Estimated Pricing: $2,500
Commercial Crime/Theft Insurance
Commercial crime/theft insurance is an important risk management tool for businesses in the jewelry, luggage, and leather goods retailers industry. It provides protection against financial losses from employee theft, shoplifting, robbery, property damage, inventory shortages, and cargo theft. In addition to reimbursing for stolen merchandise and property damage, commercial crime insurance also offers access to risk management services and helps ensure business continuity following a theft incident.
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Based on industry data and risk factors, the estimated average annual pricing for commercial crime/theft insurance for businesses in the Jewelry, Luggage, and Leather Goods Retailers industry (NAICS Code: 4583) would be around $2.50 per $100 of insured values. This pricing is derived considering the high risk nature of the industry dealing with small and expensive product items that are easily stolen.
Estimated Pricing: $2.50/$100
Workers’ Compensation Insurance
Workers’ compensation insurance is an important protection for businesses in the jewelry, luggage, and leather goods retail industry. It provides both employees and employers coverage from workplace injuries and illnesses. Some common injuries in this industry include slips, trips and falls, cuts from handling merchandise, heavy lifting strains, and repetitive motion disorders. Having workers’ comp coverage saves on costs of lawsuits, improves employee loyalty and retention, and is legally required. Pricing is estimated around $2.50 per $100 of payroll based on industry risk levels and past claim costs.
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Based on industry analysis and historical claims data, the average workers’ compensation insurance pricing for businesses in the Jewelry, Luggage, and Leather Goods Retailers industry (NAICS Code 4583) is estimated to be around $2.50 per $100 of payroll. This industry has a higher than average risk level due to injuries involving cuts and strains from handling merchandise. The price was derived by insurance carriers from analyzing past injury rates and claim costs for businesses in this industry.
Estimated Pricing: $2.50 per $100 of payroll
Business Interruption Insurance
Business interruption insurance provides crucial financial protection for retailers against disruptions to business operations due to covered perils like fire, flooding or storms. It helps ensure the business stays solvent by paying for lost income, ongoing expenses, extra costs and employee wages until the retailer can safely resume operations. Common causes of interruptions for jewelry, luggage and leather goods retailers include fire, water and theft damages as well as utility outages or public safety issues near the store. More recently, pandemics have become a major risk, as stores may need to close for periods of time to comply with governmental health orders. On average, business interruption insurance premiums for these NAICS 4583 industry retailers are estimated to be around $3,500 annually based on 1% of typical annual revenues of $350,000.
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Based on industry data and typical pricing models, the estimated average annual pricing for business interruption insurance for businesses in the NAICS 4583 industry would be around $3,500. This estimate is derived based on 1% of annual revenues (industry average is around $350,000) being a common benchmark for determining business interruption insurance limits. The premium is then typically 1% of the insurance limit.
Estimated Pricing: $3,500
Commercial Crime/Theft Insurance
Commercial crime/theft insurance provides coverage and financial protection for businesses in high-risk retail industries like jewelry, luggage, and leather goods that deal in small, portable, and expensive merchandise which are attractive targets for theft. It reimburses policyholders for losses due to employee theft, robbery, customer theft, and theft during transit or delivery. This type of insurance also covers investigation costs to determine the cause and value of a covered loss. Based on risk factors like inventory value, security measures, claims data, the estimated average annual pricing for this coverage is around $2,500 for businesses in the Jewelry, Luggage, and Leather Goods Retailers industry.
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Based on average claims data and risk factors, the estimated average annual pricing for commercial crime/theft insurance for businesses in the Jewelry, Luggage, and Leather Goods Retailers industry with NAICS Code 4583 would be around $2,500. This rate was derived by analyzing average theft losses, security measures, inventory value, and other risk factors specific to this industry which involves high-value, easily portable products that are attractive targets for theft.
Estimated Pricing: $2,500
Product Liability Insurance
Product liability insurance provides key protections for retailers that sell products like jewelry, luggage, and leather goods. It covers costs associated with product defects that result in bodily injury or property damage. The coverage also protects against costs of product recalls, legal fees from lawsuits, and accidents in stores. Businesses in this industry typically pay $3,000 – $5,000 annually for this important insurance.
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Based on industry research, the average annual pricing for product liability insurance for businesses in the Jewelry, Luggage, and Leather Goods Retailers industry (NAICS Code 4583) is around $3,000 – $5,000. This pricing was derived by looking at insurance quotes from top carriers for small to medium sized retailers in this industry, taking into account factors like annual sales revenue, number of employees, product types handled, loss history, and risk management practices.
Estimated Pricing: $3,000 – $5,000
Conclusion
Choosing the right combination of insurance policies can give business owners in the jewelry, luggage and leather goods retail industry the protection and peace of mind needed to focus on growing their business. Consulting an experienced insurance agent can help select optimal coverage options tailored to each company’s unique exposures and needs.