Should you obtain business insurance to sell fireworks?
The answer is “yes.” In fact, you’ll have to have insurance to qualify for a permit in almost any jurisdiction. This is one of those things you should take care of early when you’re developing a new business plan.
Here is what you should know regarding the two types of business insurance, including what they cover.
Two Types of Business Insurance to Sell Fireworks
They are a couple of ways to approach insurance, and it pertains to how you’re going to sell fireworks.
It can be something you get from your fireworks vendor, but a few sellers might go through private insurance companies. There are two types of insurance you should know about: 1) Product Liability Insurance, and 2) Premise Insurance.
Product liability insurance may come from the manufacturer as part of their master insurance plan or umbrella policy. The premise insurance will cover you if someone gets hurt on your property where you’re selling fireworks. These insurance policies may not cover everything, but it’s still worth having them because you probably won’t be able to obtain a fireworks sale permit otherwise.
Legitimate Sellers Will Always Have Business Insurance to Sell Fireworks
If you’re running a legitimate business, you need insurance. Without it, bad things could happen, leaving you vulnerable to serious liability and possible expense.
For example, if somebody steps out of their car and lands on a rusty nail in your parking lot, they’re going to sue you. This is true even if you’re only renting a property for a fireworks store. Hence, the reason you need different levels of insurance.
Another way to get coverage is to contact insurance agents who specialize in fireworks insurance. Once again, however, the easiest way to do this is to talk to your fireworks vendor.
What are some things that aren’t covered through insurance?
Storm damage isn’t covered under an umbrella policy. That’s a significant concern because of July thunderstorms, which could damage or destroy your tent. Loss or theft is not covered by most fireworks insurance policies.
You also won’t be able to get coverage for theft either, so you have to factor in these risks before starting a fireworks business. It’s one reason we recommend sellers gather enough capital before doing anything (more is better; don’t use it all), in case you run into issues like these.
Other Concerns for New Fireworks Sellers
Black Cat Fireworks enjoy helping new sellers because it’s a lucrative business, provided you have all your ducks in a row, and hustle during 4th of July week.
Besides insurance, what are some other essential things to focus on before opening a fireworks tent or store? Here are a few of big items:
- Know whether it’s legal to buy or sell fireworks in your area.
- Develop a business plan, with a budget, and gather adequate capital.
- Since most fireworks sales are in-person (at a store or tent) make sure you find people to help you run things. It WILL get busy on the 4th of July weekend.
- Obtain any required licenses and permits in your area (state and local).
- Determine how you intend to price items and have a reliable POS system for inventory and order processing.
- Make sure your store or tent actually has enough fireworks, but don’t forget the other physical items as well (tables, signs, cash registers, etc.).
- Find an acceptable location to sell fireworks (where it’s legal to do so).
There are plenty of other minor considerations, but these are some of the big-ticket items to think about early.
Black Cat Fireworks: America’s Top Fireworks Brand
You can find Black Cat Fireworks stands, tents, or stores all over America nowadays. That’s because we’ve built the best reputation for fireworks manufacturing by making exciting, safe, and affordable fireworks. Whether you want to put together a small backyard show or an elaborate display, we have the consumer fireworks merchandise to facilitate anything.
If you want to learn more about getting business insurance to sell fireworks, contact Black Cat Fireworks anytime to ask questions.