Hardware Store Insurance

small business owner protected by hardware store insurance

Hardware Store Insurance Options Built for Your Business

While you’re helping others build and fix, who’s protecting your business? Hardware store insurance can help you handle setbacks, so you can keep supporting builders, DIYers and repair professionals.
 
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What Is Hardware Store Insurance?

Hardware store insurance is another name for small business insurance. It’s a package made up of different types of business insurance coverages designed to help protect small businesses that sell tools, building materials and home improvement supplies. With heavy inventory and high foot traffic, key coverages can help safeguard you against:
 
  • Customer injuries, like if someone slips or gets hit by an item falling from a shelf.
  • Property damage, including from fire, water leaks and vandalism.
  • Data breaches, like an attack that targets your point-of-sale system.
  • Stolen equipment, including items you use, rent out or sell to the public.
  • Employee claims, such as workplace injuries and illnesses.

Why Do You Need Hardware Store Insurance?

From delivery errors that damage your new inventory to the theft of high-value items like generators, unexpected losses can be costly. The right insurance can help cover damages from theft and even liability claims related to injuries, property damage or workplace disputes.
small business protected by knowing Who May Need Hardware Store Insurance

Who May Need Hardware Store Insurance?

The Hartford’s insurance coverage can help protect retail stores that sell tools, materials or supplies for home improvement and construction, including:
 
  • Independent hardware stores
  • Franchise hardware stores
  • Lumber and building supply stores
  • Paint and home improvement retailers
  • Tool and equipment rental shops
  • Plumbing and electrical supply stores

What Type of Insurance Do I Need for a Hardware Store?

Many hardware store owners have a Business Owner’s Policy (BOP) as the foundation of their insurance plan for the peace of mind it can provide. It includes three types of coverage to help protect your business from claims of bodily injury, property damage and theft.
 
A BOP includes:
 
General liability to help protect your hardware store from claims that it caused bodily injury or property damage to others, like if a delivery driver slips in your icy parking lot.
 
Commercial property insurance to help protect your owned or rented building, as well as tools, equipment, inventory and supplies that you use to operate your hardware store, including:
 
  • Power tools, such as drills, saws and sanders
  • Generators
  • Lawnmowers and power equipment
  • Heavy-duty shelving and storage units
  • Forklifts and pallet jacks
  • Welding machines
  • Key cutting machines
Business income insurance to help replace lost income if you can’t operate your hardware store because of property damage caused by covered events like fire, theft or wind.
 
At The Hartford, we know every hardware store has different needs and faces unique risks. We’ve made it easy for you to add other types of insurance to your BOP to create well-rounded protection, including:
 
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How Much Does Hardware Store Insurance Cost? 

Hardware store insurance costs vary. On average, The Hartford’s small business customers in this industry pay:**
 
  • BOP: $1,985 a year, or about $165 a month
  • Stand-alone general liability insurance: $623 a year, or about $52 a month
  • Workers’ compensation insurance: $1,354 a year, or about $113 a month
It’s important to remember that the cost of your hardware store insurance may be different than the average. That’s because every business owner has unique needs, and insurers may use several factors to determine rates. The best way to find out how much you’ll pay for insurance is to get a quote.
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Covering Your Operations

From mixing paint and managing deliveries to renting out tools, every day at your hardware store brings new challenges. With so many moving parts, unexpected incidents can happen. The right insurance can help protect you from potential setbacks.
In 2024, 15% of data breaches involved a third party or supplier, such as software supply chains, hosting infrastructure or data custodians.2
General Liability Insurance for hardware stores

General Liability Insurance

“A customer slipped on a small spill in the paint section. He took a pretty hard fall, and we had to call the paramedics.”
 
General liability insurance helps cover claims that your hardware store hurt somebody else. It can help cover their medical bills or your legal costs if you get sued.
Cyber Insurance for hardware stores

Cyber Insurance

“Our payment system was hacked, and customer credit card info may have been exposed. We had to act fast to secure our system and notify customers.”
 
Cyber liability insurance helps cover losses due to cyberattacks or other tech-related risks. It can also help with privacy investigations or lawsuits following an attack.

Taking Care of Your Team

Your employees are the heart of your hardware store. They help customers, manage inventory and make sure things run smoothly. But when challenges come up, the right insurance can support them when they need it most.
In 2023, $665 million was awarded in workplace discrimination lawsuits.3
workers' compensation Insurance for hardware stores

Workers’ Compensation Insurance

“One of our employees twisted his ankle while unloading a big shipment. He was in a lot of pain and went in for X-rays.”
 
Workers’ compensation insurance gives your team benefits to help them recover from work-related injuries or illnesses. It can help cover their medical bills and replace lost wages if they can’t work. With The Hartford, your employees also have access to a network of over 1 million providers and 65,000 pharmacies.
EPLI Insurance for hardware stores

Employment Practices Liability Insurance

“My inventory manager had to end an agreement with a supplier because of constant late shipments. He was shocked to learn the supplier was suing him for discrimination.”
 
Employment practices liability insurance (EPLI), which is included in a BOP, helps protect your store from employment-related claims, like wrongful termination, discrimination and harassment. With The Hartford, you also get coverage for claims filed by customers or vendors.

Protecting Your Property

Your hardware store is a major investment of time, money and hard work. From the building itself to the tools, equipment and inventory that keep it running, each piece plays an important role in your success. A single fire, break-in or natural disaster can put everything at risk.
Work-related crashes cost employers $39 billion annually, with an average loss of $75,000 per nonfatal injury.4
commercial property coverage for hardware stores

Commercial Property Insurance

“A big storm rolled through and caused some major leaks in the roof. A lot of our inventory was damaged.”
 
Commercial property insurance helps protect your owned or rented building, as well as equipment, tools, supplies and inventory you use to operate your hardware store.
commercial auto Insurance for hardware stores

Commercial Auto Insurance

“One of our drivers was out delivering equipment to a customer when she got into an accident. The truck was badly damaged, and she needed to go to the ER.”
 
Commercial auto insurance can help cover property damage and bodily injury claims if you or an employee gets into an accident while driving a business vehicle for work.

Frequently Asked Questions About Hardware Store Insurance

Insurance is essential to help protect your hardware store from the many risks that come with running a retail business. From customers handling heavy tools to employees restocking high shelves, accidents can happen. Having the right type of insurance can help cover medical bills and your legal fees if your business gets sued.
 
If your store relies on commercial vehicles for deliveries or transporting supplies, commercial auto insurance helps protect your trucks and employees while on the road. In addition, commercial property insurance helps cover your building, inventory and expensive equipment from theft, vandalism or fire. This coverage can help you recover quickly from setbacks. And if covered property damage forces you to temporarily close, business income insurance can help replace lost revenue and keep your store financially stable.
If you own a hardware store, insurance coverage is important because it helps protect you from the risks you face during normal operations. Without insurance, a single incident, like stolen inventory or a work-related car accident, could cause a major financial setback for your hardware store. Just as you help customers find the right tools to fix problems and handle last-minute repairs, hardware store insurance helps provide the protection you need to help keep your business running smoothly.
The best way to get hardware store insurance from The Hartford is to get a quote. In just a few minutes, you can get a fast and free quote for your store online.
small business owner happy with his hardware store insurance quote from The Hartford

Lock In Protection With Hardware Store Insurance

Get a quote today to help protect your hardware store from unexpected events.
 
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Last Updated: August 29, 2025
** Costs, premiums, and coverages mentioned are estimates and are not guaranteed. Actual cost, premium, and coverage are determined at the time of quote or issue and are specific to an individual risk. Premiums are based on information provided to The Hartford, including, but not limited to, underwriting and rating criteria. All examples included on this website or in an advertisement are intended for informational purposes only and are not an offer or a guarantee of premium or coverage. Coverage and products described are subject to the terms and conditions found in the policy contract. Any educational information provided about available coverages does not modify the policy language or imply that any claim is covered. Products are not available in all states or for all businesses.
2 Verizon, "2025 Data Breach Investigations Report”
 
3 U.S. Equal Employment Opportunity Commission, “2023 Annual Performance Report”
 
4 NIOSH, "About Motor Vehicle Safety at Work"
This page outlines in general terms the coverages that may be afforded under a policy from The Hartford. All policies must be examined carefully to determine suitability for your needs and to identify any exclusions, limitations or any other terms and conditions that may specifically affect coverage. In the event of a conflict, the terms and conditions of the policy prevail.
 
All Hartford coverages and services described on this page may be offered by one or more of the property and casualty insurance company subsidiaries of The Hartford Insurance Group, Inc. In Arizona, California, New Hampshire, Texas, and Washington by Hartford Fire Insurance Company, Hartford Casualty Insurance Company, Hartford Accident & Indemnity Company, Hartford Underwriters Insurance Company, Twin City Fire Insurance Company, Pacific Insurance Company, Limited, Sentinel Insurance Company, LTD (CA license #8701), Hartford Lloyd's Insurance Company, Hartford Insurance Company of Illinois, Hartford Insurance Company of the Midwest, Trumbull Insurance Company, Hartford Insurance Company of the Southeast, and Property & Casualty Insurance Company of Hartford and its property and casualty insurance company affiliates, One Hartford Plaza, Hartford, CT 06155.
 
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The Hartford shall not be liable for any damages in connection with the use of any information provided on this page. Please consult with your insurance agent/broker or insurance company to determine specific coverage needs as this information is intended to be educational in nature.
 
The information contained on this page should not be construed as specific legal, HR, financial, or insurance advice and is not a guarantee of coverage. In the event of a loss or claim, coverage determinations will be subject to the policy language, and any potential claim payment will be determined following a claim investigation.
 
Certain coverages vary by state and may not be available to all businesses. All Hartford coverages and services described on this page may be offered by one or more of the property and casualty insurance company subsidiaries of The Hartford Insurance Group, Inc. listed in the Legal Notice.
 
The Hartford Insurance Group, Inc., (NYSE: HIG) operates through its subsidiaries under the brand name, The Hartford, and is headquartered in Hartford, CT. For additional details, please read The Hartford’s Legal Notice.
 
* Customer reviews are collected and tabulated by The Hartford and not representative of all customers.
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