Insurance for Clothing and Apparel Stores
Retail clothing stores carry substantial inventory, welcome foot traffic daily, and often operate in leased spaces with significant buildout. A theft, fire, or customer injury on your premises can result in costly losses that threaten your ability to operate. We work with carriers experienced in retail to build you a coverage package that protects your store from the ground up.
Key Coverages for Clothing and Apparel Stores
- Business Owner's Policy (BOP) - Bundles general liability and commercial property coverage for small retailers. Covers your inventory, fixtures, and displays against theft, fire, and other covered losses, and covers third-party injury or property damage claims.
- Product Liability - If a clothing item you sell causes injury or an allergic reaction, product liability covers the resulting claims against your business.
- Business Interruption - Covers lost revenue and continuing expenses if a covered event forces your store to close temporarily.
- Workers Compensation - Required in most states if you employ sales staff. Covers employees injured on the job.
- Commercial Crime - Adds protection against employee theft and shoplifting losses beyond standard property policy limits.
Getting Inventory Limits Right
Many clothing retailers are underinsured because they set inventory limits based on cost of goods rather than replacement value at current prices. We help you calculate the right coverage amount so that a major inventory loss does not leave you short when you need to restock and reopen.
Frequently Asked Questions
Does my BOP cover online sales?
Standard BOP coverage is focused on your physical location. If you also sell online and ship merchandise, you may need additional coverage for inventory in transit and cyber liability. We will review your full operation and make sure your policy matches it.
Am I covered for shoplifting losses?
Standard commercial property policies often exclude or limit theft by customers. A commercial crime endorsement can expand your coverage for shoplifting and inventory shrinkage.