Hobby Store Insurance

Commercial property protects the physical structure of your hobby shop, including your shelves, equipment, signage, inventory, furnishings, and more. Covered perils covered by this policy include theft, vandalism, fire, falling and flying objects, and other extreme weather damage.

Because you sell products in your hobby shop, you’ll want to consider product liability insurance. This coverage protects you if a product you sell causes harm to someone. For example, if a customer buys resin from your store in Edmonton that later causes a bad reaction, they can technically file a claim. In this case, your liability coverage would kick in and pay for any medical expenses and legal costs that may arise.

If you’re forced to close your hobby store following a covered event, your business interruption insurance policy will compensate you for your lost revenue during the period you aren’t able to operate. It also covers costs like utilities, rent, employee wages, taxes, and other additional costs.

Cyber liability coverage is essential if you sell hobby supplies online, use a POS system, or store customer data. This policy will protect you against cyber hacks, ransomware, and data breaches that may occur. It will cover recovery expenses, customer notification costs, and any legal fees that may arise.

Commercial auto coverage is essential if you use a vehicle for store deliveries, transporting supplies, or setting up booths at local hobby conventions. Personal auto insurance, unfortunately, does not extend to vehicles used for business purposes. So, whether you work alone or hire employees, commercial car insurance ensures you, your employees, and your vehicles are protected from accidents, liabilities, and damages.

Crime insurance gives your business a financial safeguard against losses caused by employee theft, fraud, and other dishonest acts, which can be difficult to prevent completely, even with strong internal controls. It can help cover a range of situations such as cash theft, inventory theft, forged cheques, fraudulent refunds, and other forms of employee dishonesty that create direct financial loss. This coverage is especially valuable because many standard business policies focus on external threats (like break-ins) and may not respond when the loss is caused internally.

Standard policies often exclude flood and sewer backup damage. If your store is located in an older building or you keep your inventory in a basement, you may want to consider these policies. Should heavy rainfall cause sewage to back up into your store and damage your items, or flooding from a nearby waterway do the same, this policy will cover clean-up and replacement expenses.