Pawn Store Business Insurance Coverage Checklist
The coverages a pawn store business business may carry — core, prevalent, and situational — why each matters, and the gap most often missed.
Pull out your current policy and check the box next to any coverage you can confirm is already in place — anything unchecked is worth a quick conversation with your advisor. Coverage checklist for pawnshops. Priorities reflect typical exposure for this class; confirm against inventory mix and lending volume.
Tick each coverage you can confirm you carry — anything left unticked is a good question for your next policy review.
| Have it? | Coverage | Why this business needs it | Priority |
|---|---|---|---|
| Pledged Goods / Bailee Coverage | Covers customers' pawned items lost or damaged in your custody — most states make the pawnbroker responsible. | Core | |
| Inventory / Jewelers Block | Covers owned inventory, including jewelry and gold, against theft and robbery. | Core | |
| Commercial General Liability (incl. Products) | Covers customer injuries and products sold, including firearms where not excluded. | Core | |
| Crime / Employee Dishonesty | Covers employee theft of merchandise or cash. | Core | |
| Firearms / Negligent Entrustment Liability | Needed if the store sells firearms — see the firearms dealer checklist. | Situational | |
| Professional / Lending E&O | Covers claims over loan terms, disclosures, and regulatory errors. | Situational | |
| Workers' Compensation | Required in most states; covers staff injured in robberies. | Situational | |
| Cyber Liability | Covers customer ID and transaction data, and online sales. | Situational |
The coverage gap most often missed
The most commonly missed gap for this class is coverage for pledged goods. Customers' pawned items belong to them until forfeited, and most states make the pawnbroker responsible if they are lost, stolen, or damaged — yet many inventory policies cover only owned stock. Lending compliance is the other exposure: in 2025 the CFPB reached a $9 million settlement with the largest U.S. pawn operator over loans to servicemembers that broke the Military Lending Act. Checking every borrower against the military database and keeping disclosures current is the best protection.
Send us the checklist and we'll review your pawn store business coverage line by line, then market it across multiple carriers that compete for your account.
Related: Pawn Store Business Insurance · Pawn Store Business Supplemental (apply) · All coverage checklists
Frequently asked questions
What insurance does a pawn store business business need?
The core coverages for a pawn store business business are Pledged Goods / Bailee Coverage, Inventory / Jewelers Block, Commercial General Liability (incl. Products), Crime / Employee Dishonesty. This checklist also lists the prevalent and situational coverages worth considering, with a plain-English note on why each matters.
Is this checklist insurance advice?
No. It is a free educational tool to help you have a more informed conversation with a licensed professional. It affords no coverage and is not insurance, legal, or financial advice — only your actual policy language governs what is and isn't covered.
Can Cory Washington & Co. review my pawn store business coverage?
Yes. Share your checklist and we'll review your program line by line, market your account across multiple carriers, and explain the trade-offs in plain English. Cory Washington & Co. LLC is licensed in all 50 states.
This checklist is a free educational tool from Cory Washington & Co. to help you review your own coverage and have a more informed conversation with a licensed insurance professional. It is general information only — not insurance, legal, or financial advice, and not a recommendation to buy, change, or cancel any policy. Coverage terms, availability, limits, and requirements vary by policy, carrier, and state, and only the language in your actual policy governs what is and isn’t covered. Checking or leaving blank any item above does not indicate that you are adequately insured or under-insured. Using this checklist does not create a client, agency, or fiduciary relationship. Always consult a licensed professional about your specific situation.