(888) 900 0205Book Store Insurance
Bookstore insurance is usually a combination of policies, not a single policy. Most book stores have multiple policies depending on their operations, lease requirements, staffing, and whether or not they sell online or hold events. Coverage, limits, deductibles, and exclusions vary by carrier, policy form, and state.
We’ve specialized in Book Store Insurance since 2007, backed by almost two decades of experience in commercial insurance.
General Liability Coverage for Book Stores
General liability is designed to cover bodily injury and property damage claims made against you by a third party as a result of your premises or retail operation. Book stores may expose themselves to slip-and-fall, falling merchandise, and injury to patrons during in-store events.
Costs to defend and damages paid are subject to the provisions of the applicable policy, including exclusions, limits, etc.
Claim Example: A customer sustains an injury after tripping over a display during an author signing event while trying to make a purchase. The customer alleges unreasonably unsafe conditions. General liability may address costs to defend this customer and pay any damages, according to the terms and coverages of the policy.
BPP Coverage for Book & Magazine Stores
A Business Owner's Policy bundling commercial property insurance and general liability is commonly packaged together. Business income coverage is usually included, but applies only as a result of covered property loss.
A list of optional endorsements that may be added include:
● Crime coverage for money and securities
● Equipment breakdown for mechanical or electrical failures
● Spoilage coverage if you also sell café items or other perishables
● Hired and nonowned auto liability
● Cyber liability
What's covered by the BOP is determined by the carrier, the endorsements chosen, and the terms of the policy. Not all carriers provide every possible endorsement for book store operations. Make sure the endorsements you need are actually available from the carrier before you bind coverage.
Claim Example: A windstorm breaks the storefront's window and damages some interior fixtures. Repairs require the store to close for a short time. Property coverage may respond for the cost of repairs and business income coverage for income lost because of the closure, subject to any waiting periods and provisions in the policy.
Workers Compensation Insurance
Workers' compensation provides medical expenses and some wage replacement for employees injured on the job, either from an accident or occupational illness. Employers liability protection for workplace claims is typically part of the workers' comp policy.
States, entity structure, and employee status dictate coverage requirements and implementation. Bookstore employees may be exposed to injuries caused by:
● Lifting heavy shipments of books
● Falling from ladders used to restock shelves
● Repetitive use injuries from running (or stocking) the cash register, for example
● Slipping in a receiving or storage area
Claim Example: One of your employees hurts his back unloading a shipment of inventory. Workers compensation may help cover the medical treatment and wage replacement benefits if the injury is compensable under state law.
Is general liability required for a book store by law?
No, it's generally not a state requirement, but as with many other businesses, you may be required to show proof of liability insurance if you lease or rent venue space from an event host. Check your lease or rental agreement.
Will my BOP cover my books at what I paid or what I sell them for?
Usually, your insurance will cover your inventory at the cost you paid for them rather than retail selling price. Ask about how the stock will be valued under your policy since if you sell old and rare books, and especially specialty ones, this may be otherwise.
Do I need workers' comp for just one employee who's part-time?
Probably in most cases, once you're hiring someone, even on a part-time basis, workers' compensation coverage is often mandated no matter how few hours they work. State and entity type differences apply.
Are author signings and kids' story time, etc., covered?
With general liability, these, as with most other events, are usually covered under the policy as a part of normal retail activity. For larger events, or if this is a recurring event, you may wish to confirm with your carrier that it is an exposure they will cover.
If someone steals from the register, is that a property claim?
Stolen cash is usually addressed under crime coverage, not standard property insurance. However, physical damage from a break-in (broken glass, damaged doors/locks) may be covered under the property portion of your policy, depending on the cause of loss and terms. Employee theft is also typically a crime coverage issue.
Does insurance cover water damage from a pipe leak?
This is often a peril that is covered, as long as it is sudden and accidental. Water damage caused by seepage, "gradual leakage over time," or "damage due to maintenance," are often excluded. So be sure to read your policy.
I sell online. Is cyber under my policy?
Not automatically. Cyber liability is often an endorsement that gets added to other coverages, or a stand-alone policy. If you process online transactions or store customer's payment information, then that is an exposure that warrants a specific cyber review.
Can rare or collectible books be insured?
They would have to be scheduled on your policy with documented values if they are of such value, or collectible, that the standard inventory limit wouldn't have enough coverage to protect. In general, high-value books that are rare, first editions, signed, or are treated as collectibles don't fall under standard inventory.