How To Get Pawnshop Insurance In Canada

Insurance 101 | How To Get Pawnshop Insurance In Canada

Connecting people to cash when they need it most. This is what pawn shops do and how they help people with unexpected, periodic and short-term needs for funds to support their day-to-day lives. 

According to Pawn Shops Today, “many people depend on pawnbrokers to help them meet daily financial needs not offered by other institutions. Pawn loans keep the electricity on, the rent paid and cars running with full tanks of gas. Today’s pawn stores are attractive, welcoming places to do business. Most of them are family-owned and operated stores that offer superb customer service.”1

Across North America and here in Canada, today’s pawn shops build on a history that stretches back to the world’s oldest businesses. Pawn Shops Today notes, “As humankind’s oldest financial institution, pawn loans can be traced back at least 3,000 years to ancient China as well as early Greek and Roman civilizations. During the 14thCentury, King Edward III of England is said to have frequented pawn stores in Europe. Queen Isabella is reported to have pawned her royal jewels to finance Christopher Columbus’ voyage to the New World.”2

As the owner or manager of a pawnshop in Canada, it is your business to make the best business decisions for the retail store you operate. Insurance is one of the most important decisions that any retail store owner needs to make. This article is designed to give you some insights into how to get pawnshop insurance in Canada.

Insights | How pawnshops in Canada are benefiting from positive PR

For the past decade, North American pawn shops have enjoyed great PR thanks to a certain family-run business in Las Vegas, Nevada. According to Wikipedia, “the success of Pawn Stars has been a boon to the Gold & Silver Pawn Shop, which has become a Las Vegas tourist site, and has expanded its business accordingly. Originally averaging between 70 and 100 customers per day, the shop’s traffic increased to more than 1,000 by October 2010. To handle the increased business, the shop hired nearly 30 new employees, and underwent a $400,000 expansion of their showroom by two thirds, to 15,000 square feet, the shop’s tenth expansion since it opened.”3

And while the average Canadian pawn shop doesn’t have Rick, Corey and Chumlee as PR ambassadors, good customer service, informed value assessments and great marketing highlighted on this popular show is building positive awareness of the industry across the country.   

You can get your business covered now. Just click and apply to download a custom pawnshops insurance application.

We have made it simple and easy to get connected with insurance for your pawn shop in Canada. To get the process rolling, you just need to complete the three simple steps below. 

  1. Download the Pawnshops Insurance Application Form
  2. Answer and complete the Pawnshops Insurance Form (note that you can electronically input your answers into the PDF form)
  3. Sign and return your completed application to an ALIGNED Insurance broker by emailing it to

If you have any questions about the application form or process you can call an ALIGNED insurance broker toll-free at 1-866-287-0448 or contact us via email

The future of pawnshops | Growing sales online 

South of the border, the National Pawnbrokers Association (NPA) just released a report on industry trends. It’s not surprising that more pawnshops are selling online, “One notable result indicated that 52 percent of pawnbrokers surveyed cited growth in their retail sales in 2018 as compared to the previous year.”4

“This trend of growth, of up to 25 percent, has been partially driven by pawnbrokers embracing online sales options. ‘American consumers are becoming accustomed to buying online, and this shift has moved pawnbrokers to adapt their brick and mortar retail model. Pawnbrokers are utilizing more online sales platforms, as well as engaging customers via social media as an advertising option,’ said Tim Collier, pawnbroker and NPA President.”5

More than just premises risk – Insuring your Canadian pawnshop

When you insure your pawnshop, there is lots to understand about how to best protect your business assets. Some of the most common forms of insurance you will want to consider are property, employee and liability insurance. Here’s a quick overview of each type of coverage:

Property insurance. Standard property insurance is designed to cover losses due to fire or lightning. This form of coverage also includes the cost of removing property as a way to protect it from further damage. When insuring your pawnshop, be aware that you can also get a standard policy that provides coverage for extended perils.

This will include such events as floods, windstorms, hail, earthquakes, acts of terrorism, explosion, riots, smoke, civil commotions and vehicles that damage your pawnshop. It is also possible to get coverage for vandalism and malicious mischief included in your pawnshop insurance package.

Employment practices liability (EPL) insurance. One of the most common types of coverage that every business owner with employees should be aware of is known as employment practices insurance. In addition to good human resources best practices, here are some of the employment-related exposures that can be covered:

  • Breach of oral or written employment contract
  • Discrimination
  • Defamation
  • Actual or alleged wrongful or constructive dismissal, discipline, discharge or termination
  • Employment-related misrepresentation
  • Employment-related libel, slander, humiliation, defamation or invasion of privacy
  • Invasion of privacy
  • Sexual harassment
  • Wrongful failure to employ or promote
  • Wrongful deprivation of a career opportunity, wrongful demotion or negligent evaluation
  • Vicarious liability for intentional acts
  • Punitive damages where insurable by law

General liability. Many pawnshops are stand-alone retail shops. One of the most important types of insurance that can protect a pawn shop in Canada is general liability. For example, if a customer with mobility challenges slips in your pawnshop and fractures their femur bone, general liability insurance is designed to provide coverage.

Bodily injury and property damage can occur when you least expect it. This is why general liability insurance is specifically designed to provide protection against liability claims for bodily injury and property damage related to your pawnshop premises, operations, products, completed operations as well as advertising and personal injury liability.

Download our simple insurance application form. | Buy pawnshop insurance with ALIGNED. 

We know that working with a team of business insurance experts is important when you are looking to insure or renew your pawnshop insurance. Across Canada, ALIGNED Insurance brokers are exclusively focused on meeting the needs of Canadian businesses of all sizes. 

We understand the risks that your pawnshop faces and can help you get the best insurance options. To get the process started, simply download our pawnshop insurance application form.

Read more about retail insurance and related coverages

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