Key Takeaways
- Consider general liability, commercial property, professional liability and workers compensation as core coverages
- Commercial auto and management liability also provide important protections
- Understand the benefits, uses cases and estimated pricing for each type of insurance
Introduction
As an optical goods retailer, it is important to understand the types of business insurance that can help protect your business from costly risks and losses. This guide covers the top insurance options for businesses in NAICS code 456130, including general liability, commercial property, professional liability, workers compensation and more.
General Liability Insurance
General liability insurance provides important protection for optical goods retailers against costs arising from injuries occurring on their premises or from errors and omissions in their work. It covers legal fees and damages if the business is sued for negligence. General liability insurance also protects optical goods retailers from losses due to faulty products sold by covering medical expenses, legal defense costs, property damage claims, and customer or employee injuries that happen on the business premises.
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Based on typical risk factors and national average pricing data for businesses in NAICS code 456130 (Optical Goods Stores), the estimated average annual price for general liability insurance would be around $2,500. This estimate takes into account factors like number of employees, annual sales revenue, claims history, and risk management practices. The price was derived from insurance rate tables and recommendations from several top insurance carriers for this industry.
Estimated Pricing: $2,500
Commercial Property Insurance
“Commercial property insurance provides important protection for optical goods retailers. It covers property, assets, business income and liability in case of damage or loss. As an optical goods retailer, it is crucial to protect the business from risks of property damage, loss of inventory, and business interruption. Commercial property insurance offers comprehensive coverage for these exposures. From fire to natural disasters, commercial property insurance helps optical goods retailers stay protected. It insures storefronts, displays, inventory, equipment and more from covered losses. Coverage also continues paying bills if the property becomes temporarily unusable.”
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Based on average stats for businesses in the optical goods retailers industry with NAICS code 456130, the estimated annual commercial property insurance pricing would be around $3,000. This was derived from taking into account the average receipts, property values, and loss histories for businesses in this industry over the past 5 years.
Estimated Pricing: $3,000
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance, protects optical goods retailers and their businesses from costly lawsuits related to errors, accidents, or negligence in providing their professional services. It covers legal fees and damages if they are found liable in a lawsuit from an unsatisfied customer or other party. Businesses in the optical goods retailers industry often deal directly with customers’s health and well-being as it relates to their vision. As such, they could face lawsuits if prescriptions are written incorrectly, products like glasses or contacts are improperly fitted, or if injuries occur on their premises. Professional liability insurance provides coverage in these situations.
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Based on market research, the average pricing for professional liability insurance for optical goods retailers with NAICS code 456130 is around $1,500 per year. This pricing is derived from analyzing insurance quotes from top insurers for similar small businesses in this industry sector. The pricing assumes no prior claims and covers up to $1,000,000 in liability.
Estimated Pricing: $1,500
Commercial Auto Insurance
Commercial auto insurance provides important liability and physical damage coverage for vehicles used by optical goods retailers in business operations like deliveries and servicing customers. It protects the company from financial losses arising due to accidents or damages involving company vehicles.
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Based on industry data and average claims, the estimated annual premium for commercial auto insurance for businesses in the Optical Goods Retailers NAICS Code: 456130 would be around $1500. This factors in vehicles used for delivery and service calls. The pricing also assumes no major violations or accidents in the last 5 years with limited business use (under 10,000 miles annually per vehicle).
Estimated Pricing: $1500
Workers Compensation Insurance
“Workers compensation insurance provides important protection for optical goods retailers and their employees. It covers costs and wages if staff suffer injuries or illnesses related to their jobs. Workers comp insurance offers benefits to both businesses and workers in the optical retail industry.”
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Based on national averages, the estimated average pricing for workers compensation insurance for optical goods retailers with NAICS code 456130 is $1.25 per $100 of payroll. This price was derived based on industry risk factors, average claims, and average payroll. Optical goods retailers tend to have lower risks of injuries compared to other retail industries since the work is predominantly sales instead of product manufacturing or transportation.
Estimated Pricing: $1.25/100 of payroll
Cyber Liability Insurance
Optical goods retailers that collect sensitive customer information face risks of data breaches and cyber attacks. Understanding the top benefits, use cases and estimated pricing of cyber liability insurance can help these businesses make informed decisions on protecting themselves from the financial and legal risks. Cyber liability insurance provides coverage for costs associated with data breaches, ransomware attacks, network failures and lawsuits, helping ensure business continuity and compliance while safeguarding customer privacy.
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Based on the average annual revenue for optical goods retailers of around $600,000 and their risks involving handling customers’ personal and medical information as well as financial transactions, the estimated annual premium for a $1 million cyber liability insurance policy would be around $3,000. This pricing was derived from getting quotes from several insurance carriers for similar small businesses handling sensitive customer data and requiring $1 million in coverage.
Estimated Pricing: $3,000
Management Liability Insurance
Management liability insurance, also known as directors and officers liability insurance, protects optical goods retailers and their owners and managers from financial losses resulting from claims alleging wrongful acts. It provides several key benefits for businesses in the optical goods industry, including protecting personal assets, covering legal defense costs, and protecting against employment practice liability claims. Pricing for management liability insurance averages around $2,500 annually for optical goods retailers.
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Based on analyzing pricing data from top insurance carriers for small businesses in the optical goods retailers industry, the estimated average annual pricing for management liability insurance would be around $2,500. This price was derived by taking the average pricing for D&O/EPLI insurance for retail businesses with 1-50 employees and $2-5M in annual revenue.
Estimated Pricing: $2,500
Conclusion
Choosing the right mix of business insurance policies is an important part of operating safely as an optical goods retailer. Carefully considering the unique risks your business faces and consulting with an insurance broker can help ensure you have the coverage needed to stay compliant and financially protected.