Bike Shop Insurance

Bike Shop Insurance

Gearing up to run a bike shop? Whether you’re selling bicycles, scooters or e-bikes, protect your store from potential risks with a comprehensive business insurance policy.

Zensurance - Bike Shop Owner

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Bike Shop Owner

Insurance for bike shop owners

Bike shop owners offer products and services to cycling enthusiasts from selling and repairing a diverse range of bicycles, e-bikes, and electric scooters, to providing spare replacement parts, tools, clothing, and other accessories. Some bike shops may also provide specialized services such as mountain biking tours and bicycle racing.

Regardless of the types of products and services your bike shop provides, independent bike dealers need to protect their businesses with a customized bike business insurance policy.

Like all small business owners, bike shop owners know they need a customized insurance policy to protect their businesses from both unexpected events such as severe weather or a fire and the risk of being named in a third-party bodily injury or property damage lawsuit.

Bike shop insurance is the reliable safeguard you need to protect your business and finances. It’s an affordable solution for protecting your company, employees, inventory, and customers.

A comprehensive bike insurance policy may include several types of coverages, including:

  • Commercial General Liability (CGL) Insurance: CGL protects your business in its day-to-day activities. Frequently referred to as ‘slip-and-fall’ insurance, CGL protects you against third-party bodily injury or property damage claims. For instance, if a customer visiting your bike store trips, falls, and injures a wrist, CGL may pay for their medical expenses. If that customer should sue you, CGL coverage is designed to pay your legal defence expenses and the outcome of a lawsuit. Also, CGL insurance may include product liability insurance, which covers costs associated with bodily injury or property damage claims for any product you sell, manufacture, or distribute.
  • Commercial Property Insurance: A lot can happen to the building where your bike shop operates. Whether you suffer damages because of severe weather, fire, flood, or a break-in, commercial property insurance provides financial support for losses or damages to your property, as well as your contents and inventory inside it. Commercial property coverage may also include business interruption insurance, which reimburses you for lost income following an insured event. For example, if a fire severely damages your bike shop and you must close while repairs are being made, business interruption coverage may cover the income you lost, as well as overhead costs such as employee wages.
  • Equipment Breakdown Insurance: You’ve invested significant funds to buy the tools and equipment you need to build and repair bicycles, which is all the more reason to insure them. Equipment breakdown insurance covers a broad range of equipment that falters because of mechanical or electrical malfunctions.
  • Cyber Insurance: Most bicycle shops have websites and offer different services online. That your bike shop is a small business and may only provide sales and services locally doesn’t make you immune to a cyber-attack. Cyber liability protection covers the costs associated with cybercrime and accidental data breaches, including the cost to repair and restore your computing systems and providing credit report monitoring to affected customers. For example, if you or an employee inadvertently exposes your customers’ personal and financial data or are duped by an email phishing attack, you could be held liable for damages.
  • Legal Expense Insurance: Hiring and retaining a lawyer can get expensive fast. Legal expense insurance is designed to cover those costs by providing you with free access to an experienced lawyer. Whether you require legal help for issues such as taxation, employment and supplier contract disputes, debt recovery, statutory licence protection or other business-related issues, legal expense coverage keeps those legal bills in check while you run your bike shop.
  • Commercial Crime Insurance: While you endeavour to hire talented, honest employees, it’s wise to include commercial crime coverage in your policy. It covers you for theft committed by an employee including losses or liabilities resulting from fraudulent acts.

Speak to one of our licensed brokers to determine what coverages you need in your customized policy and ensure your bike shop is adequately protected.

The cost of a bike shop insurance policy depends on several factors, including:

  • Your business’s size and location
  • The products and services you provide
  • The location from where the products you sell are sourced
  • How many employees you have
  • Years of experience
  • Your annual and projected revenues

Different insurers offer varying premiums based on these and other factors. That’s why it pays to have a licensed broker shop around on your behalf to find a policy that suits your needs at an affordable price.

All bike shop owners need to be insured against the risks they face no matter what type of products and services they provide, including:

  • Bicycle retail and repair shops
  • BMX bikes
  • Cruiser bikes
  • Cyclocross and mountain bikes
  • E-bikes and electric scooters
  • Fixed-gear and track bikes
  • Folding bikes
  • Recumbent bikes
  • Touring bikes
  • Utility bikes

Getting insured is quick and easy!

Complete our 5-minute online application for a free bike shop insurance quote.

Common claims scenarios

Customer in a bike shop

Problem: A customer visiting your store slips on a wet floor that was mopped recently, falls, is injured, and requires medical attention.

Outcome: Your commercial general liability insurance may pay for the cost of the injured customer’s medical bill, and if they sue you, it may cover your legal expense fees and any court-ordered settlement.

Commercial building on fire

Problem: Overnight, the circuit breaker in your bike shop malfunctions and triggers a fire that inflicts thousands of dollars’ worth of damage to your store and inventory.

Outcome: Your commercial property insurance may pay to repair the fire and smoke damage to your store and replace any inventory that was destroyed.

cyber hacker stealing financial infromation

Problem: Your bike shop’s computing system and database is compromised following a cyber-attack, and all your customers’ personal and financial data is stolen.

Outcome: Your cyber liability insurance may pay for the repairs to your compromised computing systems and provide your affected customers with credit monitoring services.

Frequently asked questions

Does my insurance cover bike rentals?

Product liability coverage within a commercial general liability insurance policy covers you for any injuries or property damage to a customer who rents a bike from your shop provided it is stated in your policy.

Do I need additional coverage if my bike shop organizes and hosts a community cycling event?

Yes. If your bike shop hosts and runs cycling events outside of your store, you may require additional insurance coverage for them. Speak to one of our licensed insurance brokers about the types of events you plan to host and what your coverage options are for them.

What is the most common risk bike shop owners face?

While theft is undoubtedly a common problem independent bike dealers face, so too are the risks associated with building and repairing customers’ cycles. If one of your bike repair technicians should make a mistake working on a customer’s bike, and a customer suffers an injury because of that error, you could be sued for third-party bodily injury.

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Ready to start? Let’s get a quote!

Don’t back pedal when it comes to getting the comprehensive bike shop insurance coverage you need.

Fill out an online application to get a free quote from Zensurance. Our licensed brokers will shop our partner network of more than 50 leading Canadian insurance companies to get you the customized policy you need at the lowest price on the market.