Key Takeaways
- Consider general liability insurance to protect against injury claims on your premises
- Get property insurance to cover inventory, equipment and buildings in case of damage or theft
- Look into commercial auto insurance if your business transports goods using vehicles
- Workers’ compensation is important for employee injury protection legally required in many states
- Product liability can help with protection from defective product injury claims
Introduction
As a sporting goods retailer, business insurance is crucial to protect your operations from a variety of risks. Due to the nature of products sold and activities undertaken, certain types of coverage are especially important for this industry. The top insurances sporting goods retailers need to consider include general liability, property, commercial auto, workers’ compensation, and product liability.
General Liability Insurance
This reference provides an overview of the top benefits, use cases, and estimated pricing of general liability insurance for businesses in the sporting goods retailers industry with NAICS code 459110.
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Based on analysis of industry data from leading insurance providers, the estimated average annual pricing for general liability insurance for businesses in the sporting goods retailers industry with NAICS code 459110 is around $2,000 – $3,000. Key factors that determine pricing include annual revenues, number of employees, claims history, and safety protocols/procedures in place. This price range was calculated considering retailers with annual revenues between $500K – $2M and 5-25 employees.
Estimated Pricing: $2,000 – $3,000
Property Insurance
As a sporting goods retailer, property insurance provides critical protections for your business assets and operations. It covers replacement costs for inventory, equipment, buildings, and lost income if your store needs to close temporarily due to a covered incident like fire or storm damage. Some key benefits of property insurance for sporting goods retailers include protecting inventory and equipment from theft or damage, ensuring business interruption coverage is included, and estimating average annual premiums are around $2.50 per $100 of insured assets for a typical store. Property insurance safeguards your investment and ability to continue serving customers in the event of a covered loss.
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Based on industry data, the average annual property insurance premium for sporting goods retailers is about $2.50 per $100 of insured assets. For a typical sporting goods retailer with $500,000 in insured assets, their estimated annual property insurance premium would be $2.50 * $500,000 / $100 = $12,500.
Estimated Pricing: $12,500
Product Liability Insurance
Product liability insurance provides important protection for sporting goods retailers by covering costs associated with product liability claims and lawsuits related to injuries caused by defective products sold. It protects the business from large damages payments, reimburses medical bills if a customer is harmed, and covers costs of product recalls. Pricing is estimated around $2.50 per $100 of annual gross receipts based on industry research.
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Based on industry research and analysis, the estimated average pricing for product liability insurance for businesses in the Sporting Goods Retailers industry (NAICS Code: 459110) is $2.50 per $100 of gross receipts. This pricing is derived from considering factors like the risk level of the industry, average claim sizes, loss ratios in recent years, and policy limits/deductibles that are typically offered. For a business in this industry with $1 million in annual gross receipts, their estimated annual product liability insurance premium would be $2,500 ($2.50 per $100 x $1,000,000 gross receipts).
Estimated Pricing: $2.50 per $100 of annual gross receipts
Commercial Auto Insurance
Commercial auto insurance is an important protection for sporting goods retailers, as their businesses rely on vehicular transportation. Some key benefits they can gain from auto insurance include liability protection in accidents, coverage for employee vehicles used for work, and replacement costs if company vehicles are damaged or stolen. It also provides legal defense if they are sued for damages and income replacement if a vehicle cannot be used due to repairs after an accident. Commercial auto insurance helps protect retailers’ business assets and limit liability in key situations like deliveries, employee transportation needs, travel to trade shows using owned vehicles, and providing coverage for rental vehicles when others are unavailable.
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Based on industry data and average risks, commercial auto insurance for sporting goods retailers with NAICS code 459110 would be priced at an average of $1,200 per year. This pricing assumes a small fleet of 5 vehicles or less used for deliveries and transportation of inventory between stores. The pricing was derived from industry loss data and average claims for this NAICS code and type of business.
Estimated Pricing: $1,200
Workers Compensation Insurance
Workers compensation insurance provides protection and financial security for both employees and employers in the sporting goods retail industry. It covers medical expenses and lost wages for employees injured on the job, while protecting businesses from costly liability claims. Workers comp is crucial for retailers due to the physical risks of stocking, lifting, and equipment use. Common injuries include strains, falls, and repetitive stress. Having insurance ensures these costs are covered if an incident occurs, improves employee morale, and helps injured staff return to work sooner.
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Based on industry data and averages, the estimated average pricing for workers compensation insurance for a business in the sporting goods retailers industry with NAICS code 459110 is around $2.50 per $100 of payroll. This pricing was derived by looking at injury and claim rates for retail workers as well as average payrolls for businesses in this industry and then applying standard insurance pricing models.
Estimated Pricing: $2.50/100 of payroll
Employee Dishonesty Insurance
Employee dishonesty insurance provides important protection for businesses in the sporting goods retailers industry to mitigate financial losses from employee theft and fraud. It reimburses stolen cash, inventory, equipment, and other business property to help maintain business continuity. Given the large inventories these businesses hold, they are particularly vulnerable to theft, so this insurance is especially valuable for them. The top use cases show how employees could steal in various ways, such as stealing cash or merchandise directly, embezzling funds, committing fraudulent returns, or processing fake refunds. Additionally, the estimated pricing section provides a common annual cost of around $1,200 for this type of insurance for businesses in this industry.
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Based on risk assessment of employee theft for businesses in the sporting goods retailers industry with NAICS code 459110, the estimated average annual pricing for employee dishonesty insurance would be around $1,200. This price was derived based on typical business size, number of employees, average sales revenue, and historical claims experience for this industry.
Estimated Pricing: $1,200
Business Interruption Insurance
Business interruption insurance provides essential protection for sporting goods retailers. It protects against lost income if operations are disrupted by events that damage insured property or interrupt business activities in other covered ways. Additional coverages include utility outages, equipment failures, cyber attacks, public health emergencies and more that prevent generating sales temporarily. Policies can be customized for a retailer’s specific risks and operations. Average annual pricing is estimated around $5,000 based on factors like sales, property values, claims history and location.
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Based on industry data and risk analysis, the estimated average pricing for business interruption insurance for sporting goods retailers with NAICS code 459110 is $5,000 per year. This pricing was derived by looking at average sales volumes, property values, locations, claims history, and risk factors for businesses in this industry. The coverage provided would be for loss of income/profits for up to 12 months if the business was forced to temporarily shut down due to events like fire, flooding, weather events, or other property damage covered by their property insurance policy.
Estimated Pricing: $5,000
Conclusion
By carefully evaluating insurance needs and selecting quality coverage tailored for your business type, sporting goods retailers can gain strong financial protection from costly accidents, injuries, property losses, and lawsuits. Well-rounded protection allows owners to focus on serving customers without worrying excessively about risks outside their control. Seeking guidance from an experienced insurance agent is recommended to ensure all important areas of risk are addressed.