Insurance for Bike Shops

Protecting your store with comprehensive insurance is essential. But what specific precautions should bike shops be taking?

Recommended by the CO-OP

Insurance coverage designed for independent bike dealers

What do you get when you combine a business insurance expert with an avid cyclist & industry advocate? You get Scott Chapin.

For over a decade, Scott has combined his love for the industry with deep insights into the unique challenges and risks faced by independent bike dealers like you. So he built an insurance program designed to put you at ease and keep you protected.

The Bike Cooperative proudly recommends insurance that caters to you, serviced personally by Scott at Marsh & McLennan.   

Frequently Asked Questions about Bike Shop Insurance

What's the most common claim within the bicycle industry?

Theft – plain and simple. But a common follow-up question remains, “what are the most common claims you see and pay?”. On the shop side, this is often specific to the building and repair of bicycles. If something is done incorrectly by a mechanic and causes bodily injury, those claims can get very large. Whether it’s handlebars or hydraulic brakes not bled properly – we’ve seen multiple claims exceeding 200,000 to 2 million dollars.  From a risk management perspective – it’s worth nothing that insurance carriers are now coming to realize that the training of a mechanic and his/her certification and experience can be tied to the amount and severity of potential claims they might pay in the future. In the future – better rates can be available for shops with properly certified mechanics. 

How does insurance work with private or whitelabel bicycles sold by independent bike dealers?

Many retailers have asked about importing or privately labeling bicycles to sell within your shop. Is there coverage under  your business owner’s policy for these products? Generally – no. The problem here is that most of the manufacturing done overseas is mandated by insurance policies that aren’t recognized in the United States. If you bring a bicycle brand into the states and sell it from your shop, you essentially become the manufacturer from a product liability standpoint. In the same way – if you want to put your own brand on a bike, it’s essentially the same. If something like a frame snaps, you will likely be considered the manufacturer – and your business owner’s policy probably isn’t designed to cover that exposure. 

What misconceptions are there about bike shop insurance programs?

In many cases when it comes to liability and risk, many bike shop owners assume their business owner’s policy covers just about anything that happens in their business. Unfortunately this isn’t always the case. But there’s good news, Scott – with Marsh & McLennan – has done the legwork to shine light on the questions so many IBDs have about bike shop insurance, and The Bike Cooperative is happy to recommend his enthusiastic expertise.

Learn More from Marsh & McLennan

Insights on Bike Shop Insurance, by the expert on bike shop insurance

Bike shops have to take every measure they can when it comes to protecting their margin and doing smart business. But for many of them “protection” stops at the helmet aisle. If you haven’t thought about insurance for your bike shop in a while, it could be worth revisiting. Get started by taking a look at some of Scott’s helpful blog posts on the topic.

Building MTB trails can be risky business: be conscious of your liability

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Rental & test ride liability: how to protect yourself and your shop

Test rides can be a great sales tool. But are you protected?

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An introduction to bike shop risk management

Get an expert’s overview of bike shop risk management. 

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