Public Liability Insurance
A key cover for shop owners to consider is public liability. This covers the shop against damages or costs you have to pay out because a member of the public has been injured or had their property damaged on your premises.
This could be something as simple as a slip and trip on a wet floor causing one of your customers to break their wrist.
Employers' Liability Insurance
Any shop that has employees must buy employers' liability insurance as it is a legal requirement.
This will cover you for compensation you have to pay out because one of your employees has been injured or suffers from a work related illness whilst in your employment.
Contents and Stock Insurance
Contents and stock need to be protected in case they are stolen, damaged or destroyed – for example by a fire or flood. When calculating the value of your stock, include your materials in trade and make sure any high risk stock such as cigarettes and alcohol are covered.
Many insurers provide for seasonal increases in stock i.e. they realise that December is a busy time of year and will automatically uplift your total value of stock by a fixed percentage – it is wise to check this when buying your policy.
You may also want to consider business interruption or loss of income insurance. This will cover you for the money you lose if you can’t trade because your premises or stock have been damaged or destroyed.
What isn’t covered with shop insurance?
Areas that are not covered within shop policies are general wear and tear sustained to the premises and forms of transport used to deliver goods.
Other cover options
There are a range of additional cover products that are available for shops and some are more relevant to particular types of trade.
Make sure you purchase the products that are specific to you and try to ensure you are not paying for cover that you do not need.
Shops selling food will need to pay more attention to the frozen food section of their policy, whilst this would not be relevant for a clothes shop. In addition, alarms that are regularly maintained will encourage insurers to quote more competitively for your business, sometimes lead to a discount and make your premises less attractive to thieves.
To compare business insurance providers why not hit the 'get a quote now' button above.