Shop Building Insurance
Shop building insurance is a type of insurance where the cover is provided for risks that are associated with owning a property/premises used for business purposes or activity. Types of business could be: –
Commercial Property Insurance
- Restaurant/Take Away
- Leisure premises
Note: Charity and educational events may also come under Commercial Property too.
Description of operations: Second-hand shops deal in used goods. Other common related exposures may be street markets and off-premises exhibitions at fairs or open-air markets.
Shopping centers are property exposures, owned and available for let to store operators. The centers can have as few as five tenants or may be large shopping center-type mega centers. They may have total responsibility for car parks, pavements, and all maintenance or they may make arrangements for the primary tenant to handle all such duties. Each shopping center owner sets the condition of the lease, and that determines his or her ultimate liability. Follow the contract to determine the liability.
Property exposure depends on repairs that may be handled, along with the fire load from the variety of items on hand. Most shops have a high inventory. Therefore, storage can be a problem. All items must be shelved or stored on the floor in such a way that adequate aisle space is provided both for customers and for any firefighting needed.
Piling of items adds to the potential for spontaneous combustion and also hampers any firefighting efforts.
If there are flammables on premises for repair, all must be stored away from the inventory and all processing must be handled in a building other than the main building or inventory locations.
Property exposure is determined by the tenant. In order to truly determine the exposure, the nature of the tenant must be exposed and evaluated. A complete list of tenants is always necessary. Vacancies can be a major cause of concern. Vacancies can indicate a financial problem. Other property concerns are the age, condition, and repair of the building, the size and configuration of the building and the roof expansion, and the condition and structure of the roof.
Crime exposures are from Employee Dishonesty and Theft of Money and Securities either from robbery or safe burglary. Employee dishonesty is controlled through inventory monitoring, control of the cash register, disciplined controls, and division of duties. Theft prevention requires careful control of money kept in the cash drawers and regular bank drops.
Premises liability is always a concern where the public comes to the premises. Aisles must be adequate and free of debris with no frayed or worn spots in carpet and without cracks or holes in flooring. Sufficient exits must be provided and be well marked with backup systems in case of power failure. All items should be kept on easily reached shelves so that customers do not pull-down items on themselves.
Premises liability is a major exposure, not only within the premises and common areas, but in the car parks, on the adjoining pavements, and in any parking structures or other common areas. Floor coverings must be in good condition with no frayed or worn spots on carpet and no cracks or holes in flooring. Sufficient exits must exist and be well marked, with backup systems in place in case of power failure. Are there special events? What are they? What are the contractual relationships? Are there certificates of Shop insurance on file?
Car parks and pavements need to be in good repair and generally level and free of exposure to slip and fall. Snow and ice should be removed promptly. Security of visitors in parking areas is rapidly becoming the responsibility of the owner or operator of the premises. Is there adequate exterior lighting? What are other security measures in place?
Car parks and pavements need to be in good repair with snow and ice removed, and generally level and free of exposure to slip and fall. There should be security in the car park equal to or better than the surrounding premises. If the business is open after dark, lighting must be adequate
Products liability for this type depends not only upon the product but also on the age; condition; use; and the repair or reconditioning provided by the shop owner.
Motor liability comes from both pickup and delivery. Driving records must be regularly checked and vehicles must be maintained with full documentation kept.
Employers’ liability exposures are lifting and falling. Shelves should be easily accessible for storage. Stepladders should be available to encourage proper lifting techniques. Training in lifting and encouragement in the proper handling of stock is important. Housekeeping in storage areas, especially during peak times, is vital in preventing trip and falls.
Careful review and evaluation for all exposures are needed because of the potential for a wide variety of operations and hazards.
Employers’ Liability can be a concern for those employees who clean, repair or maintain the premises. The most common claims are for lifting, back injury, hernia, sprain, and strain. What kind of training do employees receive, and what types of material lifting or conveying devices are used?
Minimum recommended cover:
Machinery and Contents, Business Interruption, Employee Dishonesty, Money and Securities, Book Debts, Goods Held in Trust, Computers, Public/Product Liability, Employee Benefits, Excess of Loss/Difference in Cover, Employers’ Liability
Other covers to consider:
The building, Material Damage, Computer Fraud, Employment Practices Liability, Commercial Motor Liability.
Broker: The covers listed below are suggested for consideration. After evaluating each of the listed covers, check the recommended blank by those that apply specifically to the client. Make sure both the exposure and the cover are explained thoroughly to the client.
Client: For each of the covers that the broker has recommended, initial whether you have chosen to accept or reject that cover in the blanks provided.
We understand the risks you face in the retail industry and will work with you to develop a comprehensive, bespoke policy based on your needs. We have extensive experience dealing with retail covers, including buildings, contents, stock, fixtures and fittings, business interruption, employee theft, glass and signs, liability and much more.
Building a Safety Culture
Our employee safety materials help you promote a safety-minded workplace. We provide retail-specific flyers, newsletters, bulletins and more to keep safety top of mind.
Industry Leading Service
We only work with the best and most reliable insurers, ones that provide the best rates and service possible. In the event of a claim, we will help you through the process, step by step.
And Much More
We have the tools and resources to help you stay informed on important regulatory changes and industry specific issues, manage and prevent workplace risks, advance safety and boost employee morale. Let us show you how to get more value from your broker!
Please note that this list is NOT exhaustive. If you have a specific need not on the list, please contact us at Arkwright Insurance Brokers to address your needs and to arrange a bespoke policy.