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.
What is bike shop insurance?
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.
What does it cover?
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.
Who needs it?
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
How much does it cost?
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.
Common claims scenarios
Frequently asked questions