Pawn Shop Insurance
Pawn shops are a popular business in town and cities of all sizes. Owning a pawn shop means that you can provide services to your customers in two distinct ways. You may help someone out by providing them with extra money when times are difficult. And you help other people out by providing quality goods at reasonable prices. Depending upon your personal likes and preferences, you may even get to enjoy finding rare goods and collectibles. Keep your company enjoyable and profitable by protecting it with business insurance for pawn shops.
General Liability For Pawn Brokers
General liability is important business insurance for the surprise or unexpected hazards that can pop up at any given time. This insurance is very flexible and broad because it provides you with protection for common and uncommon risks. Instead of listing what it will cover on your policy, general liability only lists what it will not cover. That means that when you add products, locations or services that are not specifically excluded on your policy then they are automatically protected by the existing coverage. Some of the specific ways general liability protects your company include:
General Liability Insurance Includes:
- Premises Liability – Whether your pawn shop is neatly organized with plenty of room for customers to browse around, or cramped and filled to the nooks and crannies, customers can have accidents. They can trip on something, stub their toe on furniture and so on. If a customer hurts themselves while they’re on your business premises, premises liability insurance can pay for their medical treatments.
- Products Liability – Sometimes when you sell products to a customer, they will hold you legally responsible if that product injures them or makes them sick. Products liability insurance helps protect you by paying for legal defenses when claims of this sort are made. It can also pay for the customer’s damages or losses if the claim holds up in court.
- Completed Operations – Completed operations insurance is the section of general liability that applies to services you provide. If, for example, your pawn shop operates on a temporary loan principle, then a customer may sue you with claims that you did not hold his property for the agreed upon period of time. This portion of your insurance policy protects you from the legal actions and helps in the event that financial enumeration is in order.
Business Owners Insurance Policy
A BOP, or business owners policy, is popular with small business owners. This insurance gives you all of the base protection of general liability, plus it lets you pick and choose additional levels of asset protection. Your pawn shop may want a BOP policy to protect the shop’s physical inventory and cash receipts for example, but it may not have a need for specialized software coverage. Examples of tangible and intangible business asset protection provided by a BOP include:
- Buildings and Contents
- Business Income and Extra Expense
- Electronic Data
- Newly Acquired or Constructed Buildings
- Employee Dishonesty Coverage
Business Auto Insurance
You may drive frequently to inspect and purchase merchandise for your pawn shop. Your employees may drive trucks to pick up or deliver larger loads or items. If an auto accident happens, the expenses can be quite large. A business auto insurance policy protects your company from having to pay the majority of those expenses directly. If your delivery truck is stolen for example, and your auto policy covers that risk, it can pay for the cost of replacing it. Auto coverage pays for physical harm and injuries, property damages, and losses caused by fire or theft among other things.
Workers Comp Insurance
Your pawn shop employees must be protected with workers comp insurance. This is mandatory by law in most parts of the country. Workers comp is for employee accidents and injuries. When one of your workers gets hurt while doing his job, this insurance pays his medical bills or other expenses that are needed for him to make a full recovery.
Commercial Umbrella Policy
If an accident or unexpected event is too large for your business insurance policies to cover, they will reach a maximum payout limit. This is often referred to as policy or benefit exhaustion. If policies are exhausted before all of the damages are paid for however, then a commercial umbrella policy can help pay for the remaining balances.