Why do toy shops need insurance?
Theft of stock
After a viral online hit, a particular brand of toy has been flying off your shelves. You have customers pre-ordering stock and checking every day to see if new toys have arrived. One morning you arrive at your shop to find your door is already open and stock has been stolen overnight.
Luckily, our business contents insurance can help you to recoup losses and cover the cost of replacement stock.
An injured shop assistant
When working in the storeroom, a shop assistant is reaching for stock on a high shelf. Stretching, they misjudge the weight and the box of wooden toys topples down on them. Hurt and left with a bruised head, they take a trip to A&E to ensure there’s no serious harm.
If your shop assistant chooses to take action against you, employers’ liability insurance could help to protect against unexpected costs such as legal fees and compensation.
While the products in your toy shop typically work as they should, you come to realise a recent batch isn’t up to standard. Not only are you unable to sell your toys. They’re harmful to people who use them.
Products liability insurance can offer protection if a customer claims they’ve been hurt by a faulty product you’ve sold in your toy shop. Should your customer take legal action against your toy shop business, your products liability insurance can help with the legal costs and set things right with customers if necessary.
What insurance is available for toy shops?
Insurance for toy shops: FAQs
What insurance do I need to sell toys online?
The insurance you may need to sell toys online depends on the work you do. Generally, the insurance needs of an online toy shop are similar to a physical toy shop.
If you have staff working for you, employers’ liability insurance may be mandatory. Products liability can help with legal costs and compensation in the event of a defective or harmful product. Cyber insurance is popular with businesses that operate online – this offers protection against digital risks and losses.
Can I insure my workshop?
Yes, if your toy shop also has a workshop on site, this can be insured as part of Hiscox business insurance. However, it does depend on whether you own or rent your toy workshop. If it’s a rented space, then you may benefit from business contents insurance. If you own the property, you could potentially get commercial buildings insurance, provided the space was more a workshop for minor repairs than a factory manufacturing toys.
Products liability insurance can provide cover if any toys you repair in your workshop are faulty and lead to claims from a customer that they caused injury.
Is toy shop stock covered?
Yes, toy shop stock can be covered as part of your business insurance – provided you select contents cover as part of your policy. This covers a wide range of toys, up to the value of the cover limit you set – wooden, plastic, electronic and computerised toys can all be covered.
If you own your toy shop building, you might also opt for commercial buildings insurance in case of events such as fire.
Do I need insurance to sell personalised items?
Insurance can be useful if you’re ever taken to court for damages or injuries caused by personalised items, including toys. Products liability insurance, for example, can help if you sell items personalised by a third party, in case of safety issues caused by the modification. You can be held liable even if you purchase goods and make superficial alterations to them.
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