While pawn shops do need general liability coverage and other coverage options common to other businesses, they also have unique needs because of the way they operate in the secondary market for goods. Between valuable collectibles and useful items like electronics and tools, pawn shops are often used as a place to get quick cash by criminals, and failure to spot and report likely theft can cause a shop to incur liability. That is why your shop needs great pawn shop insurance on top of its great business policies and documentation procedures.
Protection for Common Classes of Goods
Pawn shops often sell goods like motorcycles and RVs or even vehicles that involve a title transfer, as well as goods like firearms that can be inherently risky to own and operate. That is why the right pawn shop insurance program is vital. You need to be sure you are covered in the event of damage to goods while they are under pawn, before the shop owns them outright, as well as protection against liability and protection for your inventory. It’s a lot to take care of if it is split into separate policies, and that is why there are dedicated programs for pawn shops.