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Whether you run a butcher’s, baker’s, or candlestick maker’s, there’s nothing like shop insurance to protect your retail business.
Shop premises expose your business to risks on all fronts, with both staff and customers vulnerable to accident or injury, and the potential for your stock, fixtures and fittings to be stolen or damaged on a daily basis.
You can’t guarantee a completely safe environment, but with the correct shop retail insurance policy, you can be safe in the knowledge that an unfortunate incident won’t spell financial ruin for your business.
At a minimum, that means a policy that includes employers’ liability insurance for your staff, public liability insurance and product liability insurance for your customers, and contents cover for everything else.
If you want to find out more about what’s usually included in shop insurance, how much shop insurance costs, and how to find the right policy for your business, this page has you covered.
What is shop insurance?
Shop insurance does not describe one specific insurance policy.
Rather, this is the name given to a basket of different insurance policies which could protect your business from a claim if someone is injured in your shop or cover the costs of replacement or repair if stock, fixtures or fittings are lost, stolen, or damaged.
Your business could be held legally responsible if a customer is injured or their property is damaged on your premises. That’s why public liability insurance should form the foundation of your shop insurance policy. Most policies offer coverage of between £1m and £10m.
But the risk doesn’t stop once the customer has left the building. If a product purchased at your shop injures them or damages their property, you could also be liable, which is why you’ll also need product liability insurance.
Meanwhile, employers’ liability insurance of at least £5m is a legal requirement for any business with employees. If you have even one member of retail staff, who isn’t a family member, this needs to be included in your policy.
Finally, contents cover will help to replace anything from products broken by a clumsy customer on the shop floor to an employee’s misplaced phone.
» MORE: Business liability insurance explained
Do I need shop insurance?
As a small business owner, the only kind of business insurance you’re legally mandated to have is employer’s liability insurance – and that’s only if you employ anyone in the UK who isn’t a family member.
However, while shop insurance isn’t a legal requirement, you should still take steps to protect your business and your livelihood. It could seriously come back to bite you if you neglect to insure your business properly.
Sure, accidents are rare, but the small amount of cash you’ll save in the short-term by not buying insurance could end up costing you a ruinous amount of money down the line. The sums we’re talking about could be fatal for your business.
Furthermore, if you have contracts with local government or councils, you might be required to have public liability insurance in order to be allowed to operate.
Some suppliers, manufacturers or distributors may also expect you to have certain policies in place before they’ll deal with you.
So while some forms of insurance may technically be optional in the eyes of the law, the reality is that you’ll struggle to do business without them.
» MORE: Do I need business insurance?
What does shop insurance cover?
Shop insurance covers your business in the event of an injury or accident involving your stock, your premises and your products, as well as most mishaps related to staff members and customers.
What is usually included in shop insurance?
As well as the types of insurance discussed above, shop insurance policies may include the following:
- Contents cover
- Professional indemnity insurance
- Business interruption insurance
- Product liability insurance
- Stock insurance
- Business buildings
- Personal accident insurance
- Goods in transit insurance
- Shop front insurance
What isn’t usually included in shop insurance?
You can tailor your shop insurance policy to include exactly the type and level of cover you need to protect your particular business.
The only limitation you might run into is if you have unusually high value stock or contents that wouldn’t be covered by the standard amount in your policy. Speak to your insurance provider about your specific requirements.
Also, if your employees go out on deliveries, you may need specific business car insurance.
How much does shop insurance cost?
As you essentially design your own shop insurance policy, you only pay for what you need. That means your premium will be dictated by the types of insurance you choose and the coverage limits on your policy, which are based on an assessment of your business’s particular circumstances.
For example, working with dangerous equipment, operating in an area with high footfall, and employing lots of staff all expose your business to greater risk, and so result in a higher premium.
» MORE: How much is business insurance?
How to choose the best shop insurance policy for you
While the individual types of cover included in your shop insurance policy might be the same from provider to provider, you need to pay attention to the detail. Ask yourself:
- Are the coverage limits high enough to protect your particular business from a claim?
- Does the policy include extra provisions for situations a shop is likely to encounter. E.g. 24-hour glass replacement if your shop front window is shattered, seasonal increases to cover periods when your your business is carrying more stock, like Christmas
» MORE: Compare business insurance
Shop Insurance FAQs
Retail environments are exposed to a high level of risk. In order to be fully protected, at a minimum, you should consider a policy that includes:
- Public liability
- Product liability
- Employers’ liability (if you employ anyone based in the UK who isn’t a family member)
- Contents cover
To get shop insurance for your business, you need to:
- Compare shop insurance policies from top providers, paying careful attention to the details
- Choose a provider that offers good value, and then get a quote tailored
- Pay for your insurance online and receive documents as proof of purchase
- Relax in the knowledge that your insurer will pay out in the event of a claim
If you want to protect yourself from the massive costs of a successful claim in the event of an accident, injury or disaster, you need to take out a retail shop insurance policy. Failure to do so could cost you your shop.
Shopkeeper insurance is just another name for shop insurance.
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