Insuring an Oklahoma Retail Business

As a small business owner in the retail industry, your business is your livelihood. You’ve poured your heart and soul into creating a successful store, and want to ensure that it is protected. Commercial insurance can help protect your retail business from a variety of risks, such as property damage, liability claims and cyber attacks.

Oklahoma Retail Insurance

Retail insurance includes common commercial insurance policies and bespoke products or endorsements specifically designed for retail businesses. When combined, they provide retail businesses with comprehensive protection. Retail insurance often covers risks like:

• General liability claims
• Property damage
• Cyber attacks
• Product liability claims
• Business interruption
• Worker injuries

Types of Insurance Coverage for OK Retail Businesses

Common commercial insurance policies for retail businesses include:

• General liability
• Property insurance
• Workers’ compensation
• Business interruption insurance
• Cyber insurance
• Ecommerce insurance
• Product liability insurance

Which policies are right for your retail business depends on the specifics of your operations; for example, whether you operate a brick-and-mortar retail shop or an online ecommerce store.

General Liability Insurance for Retail

General liability insurance is a type of insurance that provides coverage for liability claims that arise from third-party bodily injury, property damage and advertising injury. For retail businesses, particularly brick-and-mortar stores, this type of insurance is crucial, as it can help protect your business from accidents at your location, like slip-and-fall injuries. General liability insurance can also help cover legal expenses associated with defending your business against a liability claim.

Property Insurance for Retail

Property insurance is a type of insurance that provides coverage for damage to your business property, such as your storefront or inventory. For retail businesses, this type of insurance is particularly important, as it can help protect your business in the event of a fire, theft or other types of damage to your property. Property insurance can help cover the cost of repairs or replacement of damaged property, as well as the loss of income resulting from the damage.

Workers’ Compensation for Retail

Workers’ compensation insurance is a type of insurance that provides coverage for employees who are injured on the job. For retail businesses, this type of insurance is important, as it can help protect your business in the event of an employee injury. Work comp insurance can help cover medical expenses, lost wages and other expenses associated with an employee injury.

Retail businesses mainly deal with the sale of merchandise and are generally considered low-risk when it comes to workers' compensation claims. However, the handling of inventory can often lead to back injuries, making them the most common type of injury in the retail industry. Other injuries that can occur include muscle sprains or strains, repetitive stress injuries, slip-and-fall accidents, and cuts from packaging.

Workers' Comp Insurance Requirements for Oklahoma Retail Shop Owners

When it comes to workers' compensation insurance in Oklahoma, it's essential for small business owners to understand the requirements. Not having coverage can lead to misdemeanor charges and fines. Since the revamp of Oklahoma's workers' comp system in 2013, things have been changing.

Here are the workers' comp requirements for Oklahoma small businesses:

• If you have any employees, whether full-time or part-time, you must carry workers' compensation insurance in Oklahoma.
• Sole Proprietors and Partners: As a sole proprietor or partner, you are generally excluded from coverage. However, you have the option to include yourself if you wish.
• Corporate Officers and Members: Officers and members who own 10% or more stock are typically excluded from coverage. However, you can choose to include yourself if desired.
• "Family Five or Fewer": If your business has up to five employees, and they are all immediate family members, you are exempt from providing workers' compensation.
• Independent Contractors: Independent contractors can complete an "Affidavit of Exempt Status" to waive coverage. It's important to note that both the independent contractor and the principal employer can be held liable for an uninsured subcontractor's employees. If you're hiring a contractor with employees, it's advisable to ask for proof of coverage.

Understanding these requirements is crucial for Oklahoma retail shop owners. It helps you ensure compliance with the law, protect your business, and avoid potential liabilities.

Business Interruption Insurance for Retailers

Business interruption insurance is a type of insurance that provides coverage for lost income in the event that your business is unable to operate due to a covered loss, such as a fire or natural disaster. For retail businesses, this type of insurance is particularly important, as it can help cover the loss of income resulting from a temporary closure. Business interruption insurance can help cover expenses such as rent, utilities and payroll while your business is closed.

Cyber Insurance for Retail

In today's digital age, many retail businesses operate online and store valuable data such as customer information, financial data and intellectual property on their servers. This sensitive information can be vulnerable to cyber-attacks, data breaches and other cyber threats. Cyber insurance for retail businesses is designed to protect against these types of risks and help businesses recover from a cyber-attack or data breach.

Cyber insurance can provide coverage for a range of expenses associated with a cyber-attack or data breach, such as legal fees, public relations expenses, notification costs, credit monitoring, and data recovery. Cyber insurance can also provide coverage for losses resulting from business interruption and damage to reputation.

Ecommerce Insurance for Retail

Ecommerce insurance is vital for retailers that sell products digitally, no matter how much business you conduct online. This coverage for online retailers is designed to help protect your business in the event of a cyber attack, such as a data breach or virus. An ecommerce insurance policy can help cover the cost of legal fees, notification costs and other expenses associated with a cyber attack. It can also help cover the loss of income resulting from a cyber attack.

There is a difference between cyber insurance and e-commerce insurance, although the two are related.

• Cyber insurance typically covers a business against losses resulting from data breaches, network security failures, and other cyber attacks. It may cover costs associated with notifying customers, legal fees, and public relations efforts to repair the company's reputation.
• Ecommerce insurance, on the other hand, is designed specifically to cover online businesses against risks related to online transactions, including cyber threats, such as data breaches and physical threats, such as theft or damage to goods during shipping. It also covers risks related to website errors or omissions, online payment fraud, and issues with suppliers.

While there is some overlap between the two types of insurance, they have different focuses and provide coverage for different risks. It's important for online retailers to consider both types of insurance to ensure comprehensive coverage for their business.

Product Liability Insurance for Retail

Retail businesses that sell physical products face the risk of product liability lawsuits if their products cause harm or injury to customers. Product liability insurance for retail businesses is designed to protect against these types of risks and help businesses cover the costs of legal defense and any settlements or judgments that may result from a lawsuit.

Product liability insurance can provide coverage for a range of expenses associated with a product liability lawsuit, including legal fees, expert witness fees, court costs and settlements or judgments. This coverage can also provide protection against claims of bodily injury, property damage, and other types of harm resulting from the use of a product.

It is important for retail businesses that sell physical products to have product liability insurance coverage to protect against the financial and reputational damage that can result from a product liability lawsuit. With the high cost of legal defense and the potential for large settlements or judgments, product liability insurance can be an important component of a comprehensive risk management plan for some retail businesses.