Hi All, 

I'm working on a business plan for a retail store.  But how do I estimate the cost of insurance - liability and business interruption?

Any suggestions would be appreciated. 

Thanks!

The easiest way to get an accurate amount is to contact a commercial insurance agent and get a quote. Quotes are usually free, and it will give you a chance to "interview" potential insurance agents during your planning stage -- so when you are ready to purchase insurance, you have already found an agent that you want to work with.

Best regards,

Molly Donaldson

If you need a rough estimate - rough.  We paid about $1200 a year for a million dollar liability Business Owners Policy for a Radioshack storefront with about 150k in inventory coverage.  If you need a firm estimate, follow Mcdonaldson's advice.  Tons of factors can change it dramitacally.

Startup Help

When I was trying to find this type of information I found it best to go to my bank and insurance providers that I already had. They quickly pulled up all the information and soon gave me all the estimates that I wanted. I even got quotes from other insurance companies just so I could compare slightly. You never know what you can find with a little research.

Experts say location can make or break a business, so it is the most important decision and relates to cost in a major way. If you choose less expensive space, but the area has less traffic, it can be detrimental to your sales unless you have a specialty item. However, if choosing an expensive mall space, it requires planning how much volume must be sold to turn a profit. Costs can range from $300 to more than $10,000 a month, depending on size and location. Licensing, insurance and permits all are relative to the store's location. Some states have little requirements besides zoning restrictions, but other states have detailed requirements. Check with city and state governments or SCORE agencies.

Asking for quotes is the perfect way of estimation of commercial insurance premium rates. we should take help of insurance agents to find trusted insurance companies.