Here is a breakdown of the insurance cover that should be included within a typical shop insurance policy and some general advice.
o Public liability Insurance – Insurance against claims from the general public who suffer an injury or damage possessions where the shop owner is liable inside the store.
o Employers Liability Insurance – This is a legal requirement for any business employing staff
o Building insurance – If your shop premises is leased then your managing agent will most likely have this cover included in the service charges. However if you own your premises then you can include buildings insurance cover in your shop policy. This will usually include all the cover any other buildings insurance has, including fire, lightning, explosion, civic commotion and rioting, accidental damage, glass, theft, storm, water damage and subsidence. If your premises are mortgaged then your lender will require this insurance to be permanently place.
o Stock and Contents –This will cover the cost price of your stock. Meaning that should it become damaged, destroyed or stolen, you can claim the money to buy new stock based on the cost of the old. This is always the cost price not the RRP).
o Business Interruption Insurance – Covers the loss of income that your shop could suffer after a disaster while your premises is being rebuilt or repaired. The profits that would have been earned during this period can be claimed back. It is designed to put your business back in the same financial position it would have been in if no loss had occurred.
As shops and retail is so varied you should make sure a policy gives the precise cover to protect YOUR business, without any limits or exclusion clauses.
It is important to agree on the level of cover before thinking about premium. As with anything in life you get what you pay for and often cheaper policies may not give the cover you need.
One important element of business insurance for shops is replacement cover for glass, in particular your main shop front. Check the amount you are insured for will cover the cost of full replacement and make sure the excess is sensible.
Installing shutters can sometimes cut the cost of insurance cover and improve your overall security. As will having adequate locks on doors and windows, alarms, CCTV and a good safe.
For further advice about shop insurance contact Entrust Insurance Services on: