Tailors provide specialized clothing services for Canadians. They help us alter our clothes that don’t fit, construct our outfits for special occasions, and modify garments based on our needs and preferences. Tailor shop owners might skip out on tailor shop insurance because daily operational activities can seem straightforward. However, that doesn’t guarantee risks don’t happen.
All stores that provide services to customers in any capacity can benefit from purchasing insurance. There can be unsatisfied customers, accidental injuries, property damage, financial losses, and more that affect your ability to operate successfully and to the standard of your clients.
ALIGNED can help tailors and tailor shop owners find suitable tailor shop insurance coverage for their business.
Why is Tailor Shop Insurance Important?
All stores and services face some type of risk to their commercial assets and their clients. Some of the risks can include:
- A fire, theft, or another event that leaves damages to your tailor shop, equipment, and inventory.
- A natural disaster or power outage closes your business temporarily.
- A client is injured in your store or during your services.
- You are involved in a collision while driving to a client’s location.
- A client claims you didn’t deliver the promised services.
- You accidentally damage the property or clothes of your clients during your services.
Having tailor shop insurance custom to your circumstances can protect you from these risks.
What Does Tailor Shop Insurance Include?
Your tailor shop insurance is personalized to your store requirements and coverage needs. Here are some common coverages in tailor shop insurance policies.
Commercial General Liability Insurance – also called CGL insurance, provides coverage for injuries, bodily harm, and property damages occurring to a third party during your business operations. For example, if a client is injured, you are covered for lawsuits, losses, and medical expenses.
Commercial Property Insurance – your business relies on your building and equipment to operate successfully. It’s important to ensure your assets are protected in the event of a fire, vandalism, flood, or other natural accident beyond your control.
Business Interruption Insurance – provides compensation if your tailor shop closes temporarily due to an unexpected event that’s out of your control.
Commercial Auto Insurance – covers medical, property damage, loss of income, disability benefits, and more if you are involved in a collision while making a delivery or en route to a client.
Will Tailor Shop Insurance Protect My Business from Everything?
It’s hard to say with certainty that your insurance policy will protect your business from all risks that you might encounter during daily operations.
There are many types of insurance you can purchase, and they all provide different coverages for your tailor shop. For example, commercial general liability insurance only covers claims and lawsuits alleging property damage or injuries to a third party. It does not cover the injuries that your employees sustain. You can also choose to omit certain coverages available. You might purchase commercial general liability insurance and commercial auto insurance, but you might decide to skip insurance coverage for any equipment breakdown. In this case, although you have insurance, your tailor shop isn’t protected from “everything.”
The amount of coverage that any insurance type has can also differ depending on how much protection you want, your unique operational risks, and your budget. As a result, almost no two insurance policies will look identical even if you purchased the same types of insurance.
For example, you might choose to purchase additional business interruption insurance under your commercial property insurance policy to protect your business from financial losses if your tailor shop is forced to close. However, your competitor only purchases commercial property insurance for their physical assets against insured perils. In this case, although you both have tailor shop insurance, your tailor shops are protected from operational risks to a different degree.
Your tailor shop insurance might also specify specific perils that are covered or not covered by your insurance policy. Common insured perils can include fires, vandalism, or floods, but your insurance might not protect your tailor shop and assets against earthquakes, explosions, or certain falling objects.
It’s important to read your insurance policy carefully and ask your insurance company what perils are insured under the insurance policy and which ones are not.
How Do I Estimate the Cost of my Tailor Shop Business Insurance?
The cost of any business insurance can vary significantly depending on various factors. One of the most common reasons for varying insurance premiums is that insurance companies have their methods for calculating how much risk your tailor shop poses for them to insure.
As a result, you will find that even though business insurance premiums can be similar, they are not quite the same in cost.
Other factors contribute to the cost of business insurance premiums, such as:
- Business location
- Specialization – I.e., do you work with high-end luxury or vintage clothes
- Size of your business
- Type and cost of your equipment
To get the most accurate cost estimation, you should get an insurance quote according to your tailor shop information.
Fit Your Business with the Right Tailor Shop Insurance
ALIGNED works with Canada’s top insurance companies to provide custom insurance packages at affordable prices. Contact an ALIGNED commercial insurance specialist for a free quote, or use our free online tool.
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