Pawn shops are unique in that they own the merchandise that they have on their shelves but they also keep others people’s property in the building in exchange for temporary loans. Because of the unique situation, they also need a unique pawn shop insurance program.
General Liability
A pawn shop policy must include general liability coverage for a wide variety of situations. In addition to accidents or injuries, the policy should cover employee dishonesty, product liability for guns and ammunition, and false advertising. If the pawn shop also provides online buying options, it should have a cyber liability policy as well.
Property Coverage
A pawn shop is practically nothing but property, so naturally, it needs high-quality coverage. The policy should protect store fixtures, merchandise, and money and securities. It should also provide coverage for your outdoor signage, windows, and any shipments in transit for jewelry and guns.
Choosing the Right Policy
When choosing pawn shop insurance, work with an agency that already is experienced at providing coverage for pawn shops. They should be licensed, provide competitive pricing, and be communicative about what your policy protects and what it doesn’t.
Running a pawn shop is often quite lucrative, but only if you protect it properly. If you need insurance or haven’t reviewed your policy in a while, now is the time to do so.