Pawn shop owners make a living by their ability to quickly determine the market cost of items such as jewelry, firearms, tools, electronics, and vehicles. They don’t need to be reminded of the worth of their property; however, many are unaware of the value of pawn shop insurance programs. Here are some of the policies available to them.
General liability insurance is the most basic type of coverage that any business should carry. It prevents unexpectedly large bills due to the following occurrences:
- Accidents at the pawn shop that cause bodily injury or personal property damage
- Legal claims such as libel, slander, and copyright infringement
- Lawsuits for false advertising
Commercial property insurance covers pawned items and the building that houses and sells them. Besides reimbursing for the theft of merchandise, most policies also insure items lost or damaged due to the following incidents:
- Fire and explosions
- Burst pipes, excessive rain, or other weather events that cause water damage
- Vandalism to the outside or inside of the store
General liability and property coverage are two standard types of insurance that pawn shop owners can purchase to protect their businesses. Talk to your insurance agent about these and other coverages, including workers’ compensation, professional liability, and commercial vehicle insurance.