Whenever you budget the expenses of your business, gift wrapping insurance must be included in the list because you can’t always know exactly what is going to happen in the future.
Need General Liability Insurance for Your Gift Wrapping
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With the protection provided by liability insurance and all the other kinds of insurance we will tell you about, you can protect your business and yourself in case something unwanted happens.
Like any business owner, for your gift wrapping enterprise, you must consider how much financial danger you are taking on.
If your gift wrapping business runs without proper insurance, you are taking an enormous chance not just of losing some money but of a final wipe-out.
This is because the laws in every state are very strict in enforcing liability on the owners of businesses for the consequences of their actions.
In this article, we are giving very general guidelines for startup businesses to highlight what the main kinds of insurance that you need are, and where available, a rough guide to how much you can expect to pay.
The question is, can you afford to NOT have insurance for your gift wrapping business?
What this means, for any gift wrapping business owner, is that if some customer claims that your business caused them some physical or economic damage, a court can award damages far beyond the total size of your business.
Your gift wrapping business is not harbored by laws in the same way as states are, where laws can place a “cap” on the maximum level of liability.
In some states, like Texas, there are specific monetary levels that limit the amount an adjudicator can award in any case against the state.
In a court case, it’s purely the right of the jury to award whatever amount they deem appropriate, even sometimes giving a plaintiff more than they have sort.
When you are running your gift wrapping operations, you can’t escape responsibility for the consequences of your actions.
Even more importantly, unless you have spent in advance the money necessary to have your business running as a limited liability company, all of that liability belongs to you as an individual.
What does gift wrapping insurance protect you from?
For your gift wrapping business, the most important sorts of insurance are intended to cover the risks to your business from accidents, from unexpected events, and from mistakes.
Also there are some mandatory kinds of insurance that various states require.
In the next few paragraphs, we will describe the most important points any gift wrapping business owner should remember when negotiating the insurance needed.
The main types of insurance for your gift wrapping businesses are liability insurance, commercial insurance, asset insurance and workers compensation insurance.
General liability insurance
Any gift wrapping business is dealing directly with customers, and that means you generally have the danger that some accident can happen to them personally or else something of theirs can be damaged.
In such a case, they can demand compensation.
General liability insurance policy for your gift wrapping business insures you against claims coming from injury to clients or damage to their property.
It protects your gift wrapping business from the claims themselves and as well to any resulting court costs and legal fees of the lawsuits.
In many cases, it can also help you to qualify for extra business from city and state organizations, where contracts insist on proper liability insurance.
The normal level of general liability insurance for your gift wrapping business would be with a upper limit of $1 million for a single event and a total of $2 million for the whole year.
See the table in the costing section below for average prices of general liability insurance for your gift wrapping insurance operations.
Professional liability insurance for your gift wrapping business
In the event where a buyer alleges some negligence, errors, or omissions in how you conducted your gift wrapping business for them, you can quickly face a court case.
Even if the case against you is ruled in your favor, the cost of defense can be high, and the impact on your reputation can be damaging.
Almost all small gift wrapping business should have enough professional liability insurance to cover a once-off claim of $25,000, with annual cover of $50,000.
See the table in the cost of gift wrapping insurance section below for average prices of professional liability insurance for your gift wrapping operations.
Product liability insurance
Whatever goods you sell or advice you give about the goods, you are running a risk that clients may claim that what they received didn’t meet your description of function, or that your advice was basically incorrect.
You need to be aware of the explicit laws of product liability in your own state.
For example, in California, all businesses in the supply chain can be held culpable for injuries caused by products claimed to be defective.
To cover yourself against any possible lawsuit, you need Product liability insurance for gift wrapping
Only you can determine exactly how much insurance you need.
Best advice is to consult with experienced insurance agents, brokers or company representatives for guidance.
Commercial vehicle insurance for your gift wrapping business
Beware! – almost all policies for private vehicle insurance do not cover any happening like theft or accidental damage when the van is being used for business purposes.
The best way to make sure that your vehicle is insured for both its own value, and the valuable contents, is by taking out a designated commercial vehicle insurance package.
Commercial truck policies insure the value of any vehicle in case of accident, malicious damage, fire, or theft.
In addition, in case of any accident, the van itself, the content and any legal bills, medical expenses, and property damage is guaranteed if your truck is involved in a collision.
Most states, other than Virginia and New Hampshire, require this type of insurance.
The necessary value of the insurance depends on the depreciated value of the vehicle, and your intended level of cover of contents.
Tools and Equipment insurance
Since your gift wrapping business needs specialized and dedicated equipment, you will realize how much it can cost to replace it in case of any damage, loss, or theft.
The gear may be subject to malicious damage, deliberate fire, theft, other such unforeseen acts.
In addition, acts of nature like lightning strikes, hurricanes, earthquakes, and other highly damaging natural events can eliminate your whole business in one stroke.
Unless you can afford to immediately replace such specialized gear quickly out of your own pocket, you should have full-level equipment insurance so that you can immediately buy whatever needed to keep your gift wrapping business running.
It is impossible to advise how much equipment insurance you need – it’s essentially dependent on how much you have invested in your gift wrapping business’ equipment.
Commercial Property insurance
Any gift wrapping business that owns or rents space in a building needs a commercial property insurance policy.
If you own the property, you probably have a substantial capital investment, in addition to a big liability if there’s a mortgage.
Any physical building location must carry insurance coverage for the value of the premises and contents against unexpected occurrences like fire and storms, and against criminal damages like theft and vandalism.
If your gift wrapping business operates in areas of high risk, like Florida or Georgia, extra coverage may be needed for earthquakes and hurricanes or tornadoes.
In other states like Washington, where intense cold snaps can cause damage to outer coverings of gift wrapping business premises, there is a need for more supplementary cover than in warmer climes.
Whereas the level of cover depends completely on the value of the property, it’s not possible to say what cover your need, but we have been able in the table in the cost of gift wrapping insurance section below to give some idea of the average prices per million dollars of property insurance for your gift wrapping business.
Temporary insurance by month, week or day for your gift wrapping business
Is your gift wrapping business working part-time or casually, or is the level of business fluctuating?
Using short-term insurance makes excellent sense. Business insurance by the month, day, or week – temporary insurance for gift wrapping – are special policies where you can cover a nominated period when you want to be covered.
By only paying for that period of cover, you will save by having less premiums but still having identical risk cover.
The key feature of short-term insurance is that you pay for the cover for a defined period – a nominated date, or a week or month starting on a specific date, for example for 30 days beginning on the specified date.
When you are expecting periods of higher business activity, get the existing cover raised.
Talk to your insurance agent, broker or the company’s representatives to see what options you have.
Business Owners Policy BOP for your gift wrapping business
You have the chance to combine most of the important kinds of small business insurance in one policy that is known as the business owner’s policy – BOP.
A BOP merges commercial property and public liability insurance by packaging these coverages into one insurance policy, which can save you money.
BOP insurance will cover you if any claims of injury or property damage are made.
It is often the right choice for small and medium-sized gift wrapping businesses, such as yours.
There are a few limits that will dictate whether BOP is suitable for your own business.
BOPs do not cover your professional liability or commercial vehicle policies.
Also, the size of your business will dictate whether you are allowed to take out BOP cover.
The normal business that can take out a BOP policy must have fewer than one hundred employees, and not more than five million dollars in annual sales.
As well, you must separately take out the mandated worker’s compensation, health and disability insurance as determined for your state.
Workers Compensation insurance for your gift wrapping business employees
In almost all states, it is mandatory to have workers compensation insurance when your gift wrapping business has one or more employees.
Workers compensation insurance covers the operation against any costs that arise if a worker experiences an injury or becomes sick as a result of work.
The benefits provide for medical expenses, death benefits, lost wages, and vocational rehabilitation.
Failure to meet a state’s requirements in this regard can leave you as the employer obliged to pay penalties levied by the states.
Some states, such as North Dakota, Ohio, Washington, West Virginia, and Wyoming only allow coverage from the government-run monopoly state funds.
In these states, you may not obtain your workers compensation obligations from private insurance companies.
Workers compensation rates are calculated based on the employee’s pay, and usually come out at around $1.00 per $100 per month.
However, you must consult the relevant authorities in your state.
Average costs of these types of insurance
Although every gift wrapping insurance level is unique, there are enough examples of usual quotes from insurance companies for us to give appropriate guidelines, including what are the cheapest rates offered.
Of course, you should always check with an insurance representative what’s relevant for your business.
The list below is of annual premiums we have researched for the main types of insurance your gift wrapping businesses needs.
|Types of insurance||Price range|
|Commercial vehicle insurance||$1770 – $2865|
|Product liability insurance||$345 – $625|
|Commercial insurance||$1165 – $2715|
|Equipment insurance||$495 – $1065|
|Public liability insurance||$350 – $565|
|General liability insurance||$580 – $940|
Cost of insurance for your gift wrapping operations depends on many different factors.
We have estimated these figures for small freelance gift wrapping businesses.
In larger states like New York, premiums are generally about 20%-30% higher than national averages, whereas in smaller states like Oregon, they can be about 20%-30% lower.
The location and size and type of your gift wrapping business can have a big effect on the cost of different policies.
You should talk to professional insurance agents and brokers, or insurance company representatives.
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As well you can let the internet do the work for you by enquiring about insurance companies near where your business is located.
Another good source of information is the local Better Business Bureau in your city.
What is small business insurance for gift wrapping operations?
This is a wide term used to describe common insurance policies designed to protect gift wrapping business owners from risks like bodily injury, property damage, claims of negligence.
Does my gift wrapping business have to have insurance?
Some of the types of insurance are not mandatory for you to open your business, but they can protect you from risks in your business operations.
Certain other forms are required by state law, such as workers compensation and vehicle insurance.
What does a small gift wrapping business insurance policy cover?
Liability insurance provides protection against lawsuits or claims filed by a third-party for bodily injury, property damage, or negligence.
The exact cover will vary based on your own operations.
See the table in the costing section above for average prices of the most common policies for gift wrapping insurance.
How much will gift wrapping business insurance cost?
In addition to the size of the business, certain other factors, such as location and claims history, are used to determine your policy’s cost.
You should discuss with professional insurance agents and brokers, or insurance company representatives.
You can search for more information insurance for gift wrapping , in the search box below, and follow the relevant links.