An Insurance Guide for Maryland Retailers

Posted By: Team Moody,

Retailers are businesses that need unique coverage when it comes to insurance policies. They are prone to risks due to the following reasons:

  • Retailers meet various customers.
  • Retailers use technology to run some business processes.
  • Retailers hire employees regularly.
  • Retailers have physical locations.
  • Retailers maintain physical inventories, buildings, and other tangible assets.

Thus, you need an MD Retail Coverage tailor-made for your business needs. This insurance should cover possible losses, damage to property, and lawsuit costs.

So, what insurance does a retailer need?

Commercial Property Insurance

Commercial property insurance protects your business assets from losses and damages. It consists of numerous insurance policies, covering different risks for retailers. What are the types of coverage you can expect from this insurance?

Business Liability Insurance

It is also known as General Liability Insurance. This policy will cover medical expenses if customers become injured while inside your store. The medical costs include hospital bills, medicine costs, and transportation from the hospital to their home.

If a customer’s property was stolen or damaged inside your retail store, the insurance would cover this, too. You can get reimbursed for the money you’ve spent in replacing or repairing the customer’s property.

Cyber Liability Insurance

Most retailers nowadays use technology to run business processes. Some even have e-commerce websites. The presence of tech-driven assets in your store will attract cybercriminals. So, it’s vital that you protect your business against these risks.

What constitutes a cybercrime? It often involves unauthorized data transfers or breach of data management made by an employee. This breach can cause financial loss or business disruption.

Product Liability Insurance

Retailers rely on selling products to generate income. The products range from apparel to sophisticated gadgets, from furniture to hardware supplies. As a business owner, it’s your responsibility to ensure quality in your products.

However, defects in products could still be found and may cause injury to customers. So, it’s best to get product liability insurance. Whether the customers misuse your products or not, they can still sue you for product malfunction.

Worker’s Compensation Protection

This insurance is crucial if you have employees, regardless of how many. It covers medical expenses and lost wages during recovery. The number one requirement for this policy is that the accident happened inside your retail store.

As the retail owner, your responsibility is to ensure the safety of your employees. You should train your employees properly on the use of your products. Also, adapt and implement safety precautions in your store.

Business Personal Property Insurance

Theft, robbery, fire or damages are several risks inherent to retail operations. These risks can cause disruption, financial, and income loss in your business. But, with insurance, you can reduce these losses. You can recover the amount lost during a theft or robbery and the repairs costs for damages.

Commercial Auto Insurance

Some retailers have vehicles to deliver goods to customers. If you have one, you should get auto insurance for your retail business. Often, large trucks and vans are the vehicles that business owners think to insure.

However, this shouldn’t stop you from insuring your company car, and the insurance also covers the employees who are driving the vehicle.

Umbrella Insurance

Sometimes, general liability insurance isn’t sufficient to cover repairs, lawsuit costs, or medical expenses. Sometimes, getting an umbrella policy is more cost-effective than sticking to the bare minimum.

How to Get the Best Retailer Insurance

First, consult an insurance agent expert in the retail industry. Then, ask for customization of your insurance coverage based on your needs and budget.

If you are a start-up retailer, you can stick to the bare minimum of insurance coverage for the meantime. As you grow your business, your insurance needs also grow.

However, being a start-up doesn’t mean you have to sacrifice the coverage you need. What we mean is to get insurance based on the assets you have.

For example, you own a sophisticated machine that costs a few thousand dollars. When this machine breaks down, it causes disruption. Thus, it’s best to get equipment breakdown insurance and business disruption protection to protect your assets and your bottom line.


The ultimate goal of insurance for retailers is to minimize losses. The insurance should reduce costly repairs and medical expenses due to accidents and product defects. A small yearly premium is nothing compared to the thousands or even millions you might incur for repairs, theft, or interruptions.

About Moody Insurance Worldwide

Moody Insurance Worldwide, a division of Moody & Associates that was founded in 1914, is a leading provider of risk management programs and insurance coverage to individuals and businesses across the East Coast. We write all sizes of businesses, with technical expertise in many key industry areas, and provide personal insurance programs for estates and high net worth individuals. Our licensed, experienced commercial account managers can work with you to determine the coverage that you need at a competitive rate. Contact us today at (855) 868-0170 to learn more about what we can do for you.