Thrift Store Insurance  from Massachusetts Specialists

What is Thrift Store Insurance?

Running a thrift store in Massachusetts requires a substantial investment, and the resources poured into a store ought to be protected. Thrift store insurance helps protect these stores and the investments made in them from a variety of risks that the stores face.

Thrift store insurance is a specialized kind of commercial insurance that uniquely meets the risk mitigation of thrift stores and similar businesses. Policies are generally package policies that come with several coverages, which create a network of protections.

What Massachusetts Businesses Need Thrift Store Policies?

Several different kinds of businesses may benefit from the protections that thrift store policies afford. Generally speaking, most any business that sells second-hand items might want a policy. Some examples of such businesses include:

• Non-profit thrift stores
• For-profit second-hand stores
• Antique shops
• Flea markets
• Used furniture stores

Even though many of these businesses aren’t thrift stores in the traditional sense, the risks they face are often similar to those that thrift stores are exposed to. Thus, thrift store policies can frequently be adapted to their needs.

Other businesses that sell pre-owned or used goods can discuss their particular situation with an insurance agent who specializes in these types of policies. An informed agent will know whether this or some other commercial policy is more appropriate for a given business.

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What Coverages Are Included in Thrift Store Policies?

Stores are typically able to adjust the coverages in their particular policy, so exact protections can vary from one policy to another. There are, however, many coverages that these policies make available:

• Commercial Building Coverage, which may cover an owned building
• Commercial Personal Property Coverage, which may cover fixtures, equipment and stock
• General Liability Coverage, which may cover common accidents and false advertising lawsuits
• Commercial Umbrella Coverage, which may provide additional liability coverage
• Business Interruption Coverage, which may cover prolonged revenue losses due to disasters

Stores that offer pick-up and delivery services might also need commercial auto coverage for company-owned vans or trucks. Many policies include this as an optional protection.

Do Thrift Store Policies Cover Goods Sold on Consignment?

Whether a thrift store policy covers goods sold on consignment generally depends on whether the policy includes bailee coverage. This is akin to commercial personal property coverage, but it’s specifically for goods that a store sells on behalf of others.

Some policies include bailee coverage as a standard part of their commercial personal property protection, and others offer it as an add-on option. A few policies might not provide this coverage.

Most policies that do include bailee coverage only provide actual cash value protection for consigned goods. This level of protection typically reimburses for covered losses up to the fair-market value of the goods. Replacement cost protection, which usually pays to replace an item with a new one, tends to give more protection and may be available for store-owned inventory.