How to Insure Your B.C. Clothing Store

September 15, 2025

Customers are always going in and out of your B.C. clothing store. Merchandise could be stolen, a customer could get injured, or your computer system could be hacked. Do you have enough business insurance to financially protect yourself against theft, lawsuits, and cyberattacks?

Clothing store insurance is a package of business insurance coverages that protect your B.C. retail store and they are tailored to your needs.

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What is clothing store insurance?

Clothing store insurance is a comprehensive package of insurance that meets your needs as a fashion retailer in British Columbia and it can be customized to ensure that you are covered for all the risks you face.

What B.C. stores need retail clothing insurance?

• Fashion boutiques
• Clothing retailers
• Apparel stores
• Department stores
• Outfitters

How does B.C. clothing store insurance protect against theft?

Retail theft in Canada includes shoplifting and organized retail crime and it continues to be a significant issue with yearly losses estimated in the billions of dollars.

Commercial property insurance is a pillar of your B.C. clothing store insurance package. It’s also called business contents insurance. Commercial property insurance covers your building, your inventory and stock, equipment, furniture, computers, and other electronics if damaged or destroyed by fire, severe weather such as hail and wind, vandalism, or theft.

How does commercial property insurance cover theft? Theft of stock is generally covered under the coverage for stock section in a commercial property insurance policy and it protects your retail clothing business from financial loss due to theft of inventory. Commercial property insurance helps cover the costs to replace stolen inventory.

How much does clothing shop insurance cost?

There isn’t a set price because each B.C. clothing retailer is different. Factors used to calculate business insurance for clothing stores include annual revenue, number of years in business, what you sell, number of employees, location and size, and any past insurance claims.

What else is in a clothing store insurance package?

Commercial general liability (CGL) insurance

Commercial general liability insurance protects your B.C. clothing shop against claims of third-party bodily injury or property damage occurring on your premises or as a result of your business operations. CGL covers incidents such as slips and falls.

Without CGL insurance, you will be responsible for paying all the costs related to third-party (customers, suppliers, members of the public injuries) or damage to their property.

If you were sued, CGL insurance would help cover the legal costs to defend the claim against your clothing retail business in court, as well as costs to cover damages to compensate third parties whether you win or lose your case.

What does commercial general liability insurance help cover?

• Injury to a third party who is not your employee
• Damage to someone’s property
• Damage to rented property
• Medical bills if someone is injured
• Legal costs and settlement costs of liability lawsuits filed against you
• Liability lawsuits related to slander and libel

Product liability insurance

Product liability insurance is recommended for any clothing retailer in British Columbia who sells, manufactures, or distributes a product. It provides protection against claims alleging third-party property damage or bodily injury caused by a product you sell, distribute, or make.

Product liability insurance covers:

• Design defects: There’s something wrong with the product’s design.
• Manufacturing defects: Something went wrong during manufacturing.
• Marketing missteps: A mistake in marketing materials, such as improper labels.
• Insufficient warnings: The product doesn’t include sufficient warning/information about potential harm.

Cyber liability insurance

Cyber liability insurance is an important business insurance coverage for clothing store retailers due to credit and debit payments. Cyber liability insurance will help protect your clothing store financially in case of a cyber-attack.

Depending on the size of the data breach and the information that was taken, affected customers can hold you liable and sue you for damages. That’s when cyber insurance can protect you financially.

Crime insurance

Shoppers and staff have the opportunity to steal from your B.C. clothing store business. Crime insurance helps protect you against certain types of losses that are not covered by a standard commercial property policy, such as employee theft, credit, debit or automated teller theft, counterfeit money, or loss of money at your store.

Business insurance add-ons that your B.C. clothing store needs to consider:

Overland flood insurance

Overland flood insurance provides protection for loss or damage related to water entering a property from a sudden accumulation of water. This usually results from heavy rain, spring run-off, or overflow from lakes or rivers. If you don’t have this add-on, you may not be covered.

Sewer backup coverage

Sewer backup coverage helps protect your retail store against water damage from sewer backups. Note that sewer backup insurance does not cover every type of water damage insurance claim.

Most standard commercial property insurance policies do not automatically cover sewer backup and overland flooding. Make sure your B.C. business is protected.

Business interruption insurance

Business interruption insurance helps support your clothing retail business when it can’t operate due to a covered loss. Business interruption insurance can help you with bills such as repairs, rent, and payroll even if your clothing store is forced to close temporarily.

Some examples of losses that can force your B.C. business to shut down:

• Your business is damaged by fire or vandalism
• A disruption in your supply change
• Damage to a neighboring business

Final thoughts

Clothing store insurance protects your B.C. business financially from covered events such as lawsuits, vandalism, theft, and fire. Can you afford not to be protected with clothing store insurance?

5 FAQs

How are online sales and e-commerce retail clothing operations protected?

If you also sell clothing online in British Columbia, you should tell your business insurer when applying for commercial insurance coverage. Many clothing store insurance policies extend to protect e-commerce activities, but the details and limits can vary by insurer.

Do I need additional coverage if I manufacture or tailor clothing?

Yes, you do. If you manufacture, tailor, or do repairs, consider equipment breakdown coverage as well. If you offer additional services like tailoring, you may need professional or errors and omissions insurance. Make sure that your B.C. clothing store is fully protected with the right business insurance.

Are natural disasters like floods and earthquakes generally excluded in business insurance?

Natural disasters like floods and earthquakes are generally excluded from standard business insurance policies in Canada. B.C. clothing business owners need flood insurance coverage added to their business insurance policies to be protected.

Should B.C. clothing stores have high deductibles in their business insurance?

For B.C. clothing stores to choose a high deductible for their business insurance depends on their specific financial situation and risk tolerance. Higher deductibles generally lead to lower insurance premiums, which can save a clothing store money on ongoing insurance costs.

What factors should clothing store owners in British Columbia consider when choosing deductibles?

Factors such as risk tolerance, cash flow and financial capacity, inventory, business size, industry risks and likelihood of claims should all be considered when a clothing store owner chooses the policy’s deductible.