Any business needs the correct insurance in place, and retail businesses are no exception. However, if you have a shop, your insurance needs are likely to be different from most other types of business. And if you don’t have the correct shop insurance in place, the loss adjuster isn’t going to allow any insurance claim you might make.
Any retail business that operates from commercial premises needs to have shop insurance. It doesn’t necessarily have to be what’s normally thought of as a shop. For example, a café or restaurant sells to customers from a commercial premises and employs staff, so this would certainly come under the broad definition of a “shop”.
If you’re running a shop online from home, on the other hand, shop insurance doesn’t apply. That certainly doesn’t mean you don’t need insurance, but this will be different types of policy — a domestic business policy. However, your business may still qualify as a shop if you visit customers at home or their workplace.
What Does Shop Insurance Consist Of?
Shop insurance isn’t a single policy, but it can be purchased as a bundle, so there’s a single renewal process for all the components. The main elements that make up a typical shop insurance bundle are:
- Public Liability Insurance — This offers protection against compensation claims by customers and other visitors in case of injury or property damage, as well as legal and other costs connected to the claim.
- Employer Liability Insurance — This is essentially the same thing relating to anyone who works for you. You may not need it if you work on your own or only with close family members.
- Shop Insurance for Premises — If you own the premises, you’ll need building insurance, though this is the responsibility of your landlord if you rent.
- Shop Insurance for Stock — This protects your stock, especially high-value items, against fire, flood, theft or accidental damage.
- Business Interruption Insurance — This covers you for a period during which you’re unable to trade due to an incident like fire, flood or cyber attack.
Out of these, only Employer Liability Insurance is a legal requirement, but neglecting the other policies could be fatal for your business if you need to make an insurance claim.
The are the policies that make up most core bundles of Shop Insurance, but there are plenty of other options to provide more targeted protection. These range from policies needed by a wide range of businesses, such as Product Liability and Cybercrime Insurance to more specific cover like insurance for Frozen Stock Loss or Loss of Liquor Licence.
The best plan is to go through your options with a good insurance broker, to make sure you’re covered for what you need. Then, if you need to make a claim, Allied Claims can ensure the loss adjuster pays out what you’re due.
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