How to Insure Your Toronto Clothing Store
Your Toronto clothing store has foot traffic, day in and day out. Clothing could be stolen, a customer could fall on a slippery floor, or your computer system could be breached. Do you have enough business insurance to financially protect yourself against theft, lawsuits, and cyberthieves?
Toronto clothing store insurance is a package of business insurance coverages that protect your retail store and they are tailored to your needs.
Western Financial Group, a 100% Canadian company, can help you navigate your business, car, and home insurance during this period of economic uncertainty.
Wherever your small business is located in Toronto, the Greater Toronto Area (GTA), or elsewhere in Ontario, a Western Financial Group business insurance broker will get you commercial coverage that uniquely protects what you do.
Western is a trusted, national insurance brokerage that has partnered with Canada’s top insurance companies to provide commercial insurance. We work with our insurance partners to find the best business coverage at the best rate for you.
We make the process easy by getting insurance quotes for you to choose from and giving you policy coverage options that suit your Toronto business’s specific needs at the right price for you.
What is clothing store insurance?
Toronto clothing store insurance is a comprehensive package of insurance that meets your needs as a fashion retailer and it can be customized to ensure that you are covered for all the risks you face.
What Toronto stores need retail clothing insurance?
- Fashion boutiques
- Clothing retailers
- Apparel stores
- Department stores
- Outfitters
How does Toronto clothing store insurance protect against theft?
Retail theft in Canada includes shoplifting and organized retail crime and it continues to be a significant issue with yearly losses estimated in the billions of dollars.
Commercial property insurance is a pillar of your Toronto clothing store insurance package. It’s also called business contents insurance. Commercial property insurance covers your building, your inventory and stock, equipment, furniture, computers, and other electronics if damaged or destroyed by fire, severe weather such as hail and wind, vandalism, or theft.
How does commercial property insurance cover theft? Theft of stock is generally covered under the coverage for stock section in a commercial property insurance policy and it protects your retail clothing business from financial loss due to theft of inventory. Commercial property insurance helps cover the costs of replacing stolen inventory.
At Western Financial Group, we help Toronto business owners understand what their commercial insurance covers and offer expert advice to make sure you’re protected for unexpected events.
How much does clothing shop insurance cost?
There isn’t a set price because each Toronto clothing retailer is different. Factors used to calculate business insurance for clothing stores include annual revenue, number of years in business, what you sell, number of employees, location and size, and any past insurance claims.
What else is in a clothing store insurance package?
Commercial general liability (CGL) insurance
Commercial general liability insurance protects your Toronto clothing shop against claims of third-party bodily injury or property damage occurring on your premises or as a result of your business operations. CGL covers incidents such as slips and falls.
Without CGL insurance, you will be responsible for paying all the costs related to third-party (customers, suppliers, members of the public injuries) or damage to their property.
If you were sued, CGL insurance would help cover the legal costs to defend the claim against your Toronto clothing business in court, as well as costs to cover damages to compensate third parties whether you win or lose your case.
What does commercial general liability insurance help cover?
- Injury to a third party who is not your employee
- Damage to someone’s property
- Damage to rented property
- Medical bills if someone is injured
- Legal costs and settlement costs of liability lawsuits filed against you
- Liability lawsuits related to slander and libel
Product liability insurance
Product liability insurance is recommended for any Toronto clothing retailer who sells, manufactures, or distributes a product. It provides protection against claims alleging third-party property damage or bodily injury caused by a product you sell, distribute, or make.
Product liability insurance covers:
- Design defects: There’s something wrong with the product’s design.
- Manufacturing defects: Something went wrong during manufacturing.
- Marketing missteps: A mistake in marketing materials, such as improper labels.
- Insufficient warnings: The product doesn’t include sufficient warning/information about potential harm.
Cyber liability insurance
Cyber liability insurance is an important business insurance coverage for clothing store retailers due to credit and debit payments. Cyber liability insurance will help protect your Toronto retail clothing store financially in case of a cyber-attack.
Depending on the size of the data breach and the information that was taken, affected customers can hold you liable and sue you for damages. That’s when cyber insurance can protect you financially.
At Western Financial Group, our business insurance brokers help you buy commercial insurance that suits your needs. We will get you multiple business insurance quotes from Canada's top insurance providers to help you save money.
Crime insurance
Shoppers and staff have the opportunity to steal from your Toronto clothing store business. Crime insurance helps protect you against certain types of losses that are not covered by a standard commercial property policy, such as employee theft, credit, debit or automated teller theft, counterfeit money, or loss of money at your store.
Business insurance add-ons that your Toronto clothing store needs to consider:
Overland flood insurance
Overland flood insurance provides protection for loss or damage related to water entering a property from a sudden accumulation of water. This usually results from heavy rain, spring run-off, or overflow from lakes or rivers. If you don’t have this add-on, you may not be covered.
Sewer backup coverage
Sewer backup coverage helps protect your Toronto clothing shop against water damage from sewer backups. Note that sewer backup insurance does not cover every type of water damage insurance claim.
Most standard commercial property insurance policies do not automatically cover sewer backup and overland flooding. Make sure your Toronto business is protected.
Business interruption insurance
Business interruption insurance helps support your Toronto clothing business when it can’t operate due to a covered loss. Business interruption insurance can help you with bills such as repairs, rent, and payroll even if your clothing store is forced to close temporarily.
Some examples of losses that can force your business to shut down:
- Your business is damaged by fire or vandalism
- A disruption in your supply change
- Damage to a neighboring business
What do I do if I have a claim against my Toronto business?
Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
- Know your policy so that when you contact your broker you are familiar with what will be covered or not.
- Document the damage. Take photos right away and write down what happened.
- Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
- Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
- Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.
Here’s a commercial insurance checklist:
- Do you have the best Toronto business insurance rate that suits your work?
- Do you have the right amount for your deductible and regularly review it to make sure it’s the right amount for you?
- Are you or your employees using personal vehicles for work?
To sum it all up
Clothing store insurance protects your Toronto business financially from covered events such as lawsuits, vandalism, theft, and fire. Can you afford not to be protected with clothing store insurance?
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5 FAQs
How are online sales and e-commerce retail clothing operations protected?
If your Toronto clothing store also sells clothing online, you should tell your business insurer when applying for commercial insurance coverage. Many clothing store insurance policies extend to protect e-commerce activities, but the details and limits can vary by insurer.
Do I need additional coverage if I manufacture or tailor clothing?
Yes, you do. If you manufacture, tailor, or do repairs as part of your Toronto clothing business, consider equipment breakdown coverage as well. If you offer additional services like tailoring, you may need professional or errors and omissions insurance. Ask a Western Financial Group commercial insurance expert about errors and omissions insurance for your Toronto clothing shop.
Are natural disasters like floods and earthquakes generally excluded in business insurance?
Natural disasters like floods and earthquakes are generally excluded from standard business insurance policies in Canada. Toronto clothing business owners need flood insurance coverage added to their business insurance policies to be protected.
Should Toronto clothing stores have high deductibles in their business insurance?
For Toronto clothing stores to choose a high deductible for their business insurance depends on their specific financial situation and risk tolerance. Higher deductibles generally lead to lower insurance premiums, which can save a clothing store money on ongoing insurance costs.
What factors should Toronto clothing store owners consider when choosing deductibles?
Factors such as risk tolerance, cash flow and financial capacity, inventory, business size, industry risks and likelihood of claims should all be considered when a Toronto clothing store owner chooses the policy’s deductible.