It can be difficult enough to own and run a shop, sometimes seven days per week. But, there is always the added worry about what might happen to you livelihood if the worst happens. There are many options for shop insurance that can cover all risks associated with running a business that sells goods or services to the public.
Shop insurance policies will include a range of coverages, all packaged together for convenience.
These include shop buildings and contents cover, stock in trade cover, business interruption and loss of profits, money cover and staff fidelity insurance, legal protection, window & glass cover for shop fronts, goods in transit, public liability, employers liability, and various options to cover shop specific risks. Most of these risks will be included in shop insurance packages. However, some insurers offer the option for the policyholder to choose the coverage that is appropriate for his or her shop.
Shop insurers use a variety of basic rating factors to determine premiums. Postcode and annual turnover are important factors.
The price of cover will depend on the location of your shop, including whether it has stock or contents. The premium for a shop in an abandoned housing estate that is known to be prone to theft or vandalism will be higher than one in a modern shopping center with CCTV and street security. To calculate the amount of coverage required, such as the effect of a loss on a shop’s ability to trade, it is calculated using an annual turnover.
Shop buildings insurance covers costs associated with rebuilding the shop, as well the cost to replace the shop front which is always made from glass. All buildings insurance covers permanent fixtures, such as doors and toilets. This coverage is available to both shop owners as well as those leasing the property.
Shop contents insurance covers all shop equipment and fittings used in daily business operations. Many insurance companies require that the shop contents be broken down into amounts insured for business equipment, fixtures, fittings, electrical equipment, tenants improvements, refrigerated stocks, and any other stock.
Shops that need protection for high-risk goods on their premises will typically have to declare the total value of each stock item. High-risk shop stock and goods can be stolen and hard to replace. Electronic equipment, tobacco, designer clothes, computers and software, as well as electronic cigarettes and tobacco, are all high-risk stock items.
You can lower your premiums if your shop stocks high-risk stock. This includes a company-approved burglar and fire alarm system, shutters and bars, sprinklers, and window grills. Most shop insurance companies will not offer stock coverage if there are no minimum security measures in place for all shops. Numerous insurers offer additional discounts on the premium for shop owners who live above the premises or are there at night.
Shops, by their very nature, deal with the public. Therefore, a good policy of insurance will often include liability coverage. This should include Public Liability of up to £2,000,000 for any one claim by a member of the public who may suffer loss or injury visiting the shop.
If you employ staff all policies will offer Employers Liability cover of up to £10,000,000 one event and because shops sell goods and services, Products Liability cover of £2,000,000 for any one period of insurance.
Additional standard features include coverage for legal expenses, public and products liability, loss of profits, employer, public and employees personal accident assault, loss of licence, treatment risks, seasonal increases in stock contents value, and loss of licensure.