Upper Deck wants to help in providing entrepreneurs interested in chasing their dream of working in the sports industry with the tools they need to open a trading card shop. Through our series of “How to Open a Trading Card Shop” stories here on the Upper Deck Blog, we believe we are preparing business people with the resources needed to not only get started in the industry, but to have success.

One of the most difficult questions new business owners have is with regard to insurance and what they should do there. We brought in an expert named Carrie Van Brunt-Wiley who has written for the UD Blog previously on the topic of insuring collectibles. We asked her to share some information on what hobby shop owners need to know with regard to insuring their shop. Here’s what she had to say:

“As a current or soon-to-be card shop owner, you already understand the importance of thorough planning. You need to pick a solid location, smart business hours and have the right inventory for your customer base. However, even after you’ve thought of everything, there is always the ‘unexpected.’

“Having business insurance ensures that you will be protected from those unexpected emergencies. Something as quick and unpredictable as a fire or a hail storm could be enough to cripple your finances. You can’t afford to gamble on the chance that a disaster won’t happen, and that’s why it’s vital to have some level of business insurance coverage.

When the unexpected comes, you’ll want to be ready by having the coverage you need.

“When factoring in the various expenses it’ll take to open a store, don’t forget this very important item. With a business insurance policy, you can receive coverage for: 

• Business property: This is one of the most central types of protection for retail business owners. Business property coverage will protect the shop itself, your inventory and property in transit if it were to be damaged in a covered peril. Let’s say, for example, a hurricane hit your area and rain water permeated the roof of your building damaging thousands of dollars’ worth of sports memorabilia inventory. This coverage would reimburse you for your loss.
• Comprehensive general liability: Nobody ever plans on getting sued, but it happens. Unfortunately, these days, some people even target business owners with a lawsuit. If someone were to be injured on your business property, this coverage would protect you financially. Liability insurance will help pay for any expenses involved in a lawsuit including court costs and legal defense fees.
• Loss of income: If a fire or other covered peril were to damage your shop, this coverage will make it so you’re at least partially reimbursed for lost income while repairs are being performed.
• Backup of sewer and drain: Water damage is the nightmare of every card shop owner. This protection will cover damage to your property including the shop itself and your inventory. Keep in mind that sewer and drain backup protection does not apply to general flooding.
• Computer property: Electronics don’t come cheap. Assuming you monitor your inventory electronically, you’ll need this coverage if your computer system gets damaged.
• Signage: Business signs can get costly and since they are also outdoors and exposed to the elements they have a greater chance of becoming damaged. In the event of wind, hail or water damage you want to make sure you have the opportunity to get reimbursed for your business signs.
• Utility interruption: As many business owners recently learned the hard way during Hurricane Sandy, power outages can cause major financial loss if business cannot be conducted as usual. Utility interruption protection will compensate for any lost income due to electricity, water, phone and natural gas failures.

“Protection won’t necessarily be limited to these coverages, either. Will you have employees? Each state requires workers’ compensation insurance for employees injured on the job. And you’ll also need employment practices liability insurance in case you’re accused of wrongful termination or discrimination.

 “In much the same way that organization is key to selling sports cards, it’s also the secret to keeping them safe. In the case of theft, natural disasters or other accidents, it’s crucial that you keep a detailed inventory. Maintain a thorough list of your inventory and equipment. If possible, take pictures of each item for photographic evidence. If you maintain an in-depth inventory of your wares, which is also sound business advice, you’ll save yourself a lot of hassle when you file a claim with your insurance carrier.

You never know when a disaster may strike, be prepared!

“Opening or running a card shop can be a great business opportunity, as well as a fun profession. Don’t risk the opportunity at hand by skimping on business insurance. Talk to your insurance agent about the coverage you need for your business and realize that a few extra dollars spent now could save you a nice chunk of change in the event of a claim.”

Looking for more information on how to open up a trading card shop of your own? Check out other stories on how to open up a shop here:

How to Open a Trading Card Shop with Southern Hobby
How to Open a Trading Card Shop from a Shop Owner’s Perspective – Part 1
How to Open a Trading Card Shop from a Shop Owner’s Perspective – Part 2
How to Open a Trading Card Shop with Grosnor Distribution
How to Open a Trading Card Shop with Magazine Exchange
How to Open a Trading Card Shop with Sports Images
How to Open a Trading Card Shop with Universal Distribution
How to Open a Trading Card Shop with GTS Distribution
How to Sell Singles after You Open a Trading Card Shop
How to Open a Trading Card Shop: Selling Supplies
How to Open a Trading Card Shop: Q&A with Breakaway Sports Cards in Hamilton, Ontario

This article was contributed by Carrie Van Brunt-Wiley. Carrie has been writing insurance news and consumer information since 2008. She graduated from the University of North Carolina in Wilmington in 2005 with a B.A. in Professional Writing and Journalism.