Insurance for Commercial Thrift Stores in the USA

Are you looking to know which insurance commercial thrift stores should get? Well, thrift stores are more popular than ever, with over 28,849 stores across the country. In fact, these stores have been making more money, reaching an estimated $14.2 billion in revenue in 2023. Many Americans, around 16% to 18%, shop at thrift stores every year, showing how much people enjoy thrifting. The whole secondhand market, which includes thrift stores, is growing a lot and is expected to be worth $82 billion by 2026. On average, a thrift store in the U.S. makes about $300,000 a year.

Insurance for Commercial Thrift Stores in the USA

In this article, I’ll explain why insurance is crucial for commercial thrift stores in the USA. I’ll discuss the types of insurance I need, such as liability and property insurance, and why having the right coverage matters. Additionally, I’ll share some factors that can influence insurance costs and common though store insurance claims in the USA.

What are Commercial Thrift Stores?

Commercial Thrift Stores, also known as secondhand or charity shops, have gained popularity in recent years for several reasons. These stores offer a wide variety of items at affordable prices, making them attractive to budget-conscious shoppers. Additionally, thrift shopping is seen as a more sustainable and environmentally friendly option compared to buying new, as it helps reduce waste by giving pre-owned items a new life.

Commercial Thrift Stores also appeal to shoppers looking for unique and vintage items that may not be available in traditional retail stores. Furthermore, the proceeds from thrift store sales often support charitable causes, which can be a motivating factor for many shoppers. Overall, thrift stores have become a popular shopping destination for those looking for affordable, sustainable, and unique items.

Importance Of Insurance for Thrift Stores in the USA

In the USA, insurance is particularly important for commercial Thrift Stores. Due to the troublemakers and other specific risks associated with retail operations. Here are some key reasons why insurance is crucial for thrift stores in the USA:

  1. Liability Protection: Thrift stores can face liability claims from customers, employees, or third parties for injuries, property damage, or other accidents on their premises. General liability insurance helps cover legal fees, settlements, and medical expenses associated with these claims.
  2. Property Coverage: Thrift stores need insurance to protect their buildings, inventory, equipment, and other assets against risks such as fire, theft, vandalism, and natural disasters. Property insurance can help repair or replace damaged items and restore operations.
  3. Workers’ Compensation: Thrift stores are required by law in most states to carry workers’ compensation insurance to cover medical expenses and lost wages for employees injured on the job. This insurance protects both employees and the thrift store from financial loss.
  4. Product Liability: Thrift stores may be held liable for selling defective products that cause harm to customers. Product liability insurance can help cover legal costs and damages associated with such claims.
  5. Business Interruption: If a thrift store is forced to close temporarily due to a covered event, such as a fire or natural disaster, business interruption insurance can provide compensation for lost income and ongoing expenses.
  6. Cyber Liability: Thrift stores that collect customer information or conduct online transactions need cyber liability insurance to protect against data breaches, cyberattacks, and related liabilities.
  7. Employment Practices Liability: This insurance protects thrift stores against claims of wrongful termination, discrimination, harassment, or other employment-related issues.

Overall, insurance is essential for thrift stores in the USA to protect against the diverse risks they face and ensure their financial stability in case of unexpected events.

Types of Insurance for Thrift Stores You Should Consider

For commercial Thrift Stores, it’s important to have the right insurance coverage to protect against various risks. Here are some key types of insurance to consider:

  • General Liability Insurance: This coverage protects thrift stores from third-party claims. Claims of bodily injury, property damage, and advertising injury.
  • Business Owner’s Policy (BOP): A BOP combines general liability and property insurance into one policy. Providing comprehensive coverage for thrift stores.
  • Commercial Umbrella Insurance: This policy provides additional liability coverage beyond the limits of general liability and BOP policies. Which offers increased protection against large claims.
  • Property Insurance: Property insurance covers thrift store buildings and contents against damage or loss. Damages or loss due to fire, theft, vandalism, and other covered perils.
  • Workers’ Compensation Insurance: Required in most states, workers’ comp provides medical benefits and wage replacement to employees injured on the job.
  • Business Interruption Insurance: This coverage helps cover lost income and operating expenses. If a thrift store must close temporarily due to a covered event.
  • Commercial Auto Insurance: If your thrift store sells cars, commercial auto insurance can cover vehicles used for business purposes.
  • Cyber Liability Insurance: This policy protects against losses from data breaches, cyberattacks, and other cyber threats.

Having these types of insurance can help thrift stores protect their assets, employees, and customers from various risks and uncertainties.

Factors Influencing Insurance Costs for Thrift Stores in the USA

Several factors can influence insurance costs for thrift stores in the USA. Here are some key factors:

  1. Where the thrift store is located can affect insurance costs. Stores in risky areas may pay more.
  2. Bigger stores with more sales and employees may pay higher premiums.
  3. Stores with more valuable items might pay higher premiums.
  4. The stores with safety features like alarms may pay less for insurance.
  5. Stores with a history of many claims may pay more.
  6. More coverage means higher costs.
  7. Stores that rely on staying open might pay more for coverage.
  8. Following safety rules can help stores pay less for insurance.

Common Insurance Claims in Thrift Shops in the USA

Commercial Thrift Stores in the USA can face various insurance claims due to the nature of their operations. Here are some common insurance claims:

  1. People getting hurt from slipping or tripping in the store.
  2. Damage to the store’s building, furniture, or equipment.
  3. Stealing of items or money from the store.
  4. Selling products that harm customers.
  5. Employees getting hurt while working.
  6. Problems from cyberattacks or data breaches.
  7. Losing money because the store had to close.
  8. Accidents involving store vehicles.

Having the right insurance coverage can help thrift stores protect themselves financially from these common risks and liabilities.


In summary, insurance is really important for thrift stores. It helps protect the store, its workers, and customers from bad things that can happen, like accidents, theft, and damage. Having the right insurance can save the store money and keep it running smoothly. For thrift store owners, it’s smart to get the right insurance for their store. This includes insurance for accidents, damage, and injuries.

It’s also important to follow safety rules, keep up with insurance needs, and update policies when needed. By doing this, thrift store owners can protect their business and keep it going strong. In short, insurance is a big deal for thrift stores. It’s not just about money; it’s about keeping the store safe and secure for everyone involved.