If you’re a provided by having shop insurance. Many people take out home insurance to cover the contents and structure of their house, so if you run a business, shop insurance should be no different. After all, you want your livelihood to be protected in the event of a disaster. As a business owner, you may want the peace of mind and reassurance that is.
How much does shop insurance cost?
However, shop insurance is just an umbrella term – there are many different kinds of shop insurance and you can tailor your policy to the specific needs of your business. So what is covered by shop insurance and how much does shop insurance cost?
What is shop insurance?
Shop insurance is designed specifically for owners of businesses. Generally, it is for businesses that are customer-facing, such as grocery stores, clothing stores, and other kinds of retail spaces. It is intended to offer cover to business owners that have stock on their premises.
What is covered by shop insurance?
By knowing exactly what you want to insure within your business, you can achieve a better idea of what shop insurance covers. For example, do you want to insure only your stock or the building’s physical content (including fixtures and fittings) too? Shop insurance can offer a range of cover, including contents cover, building cover and product cover. You can also be protected in areas such as public or employer liability. This can be extremely useful and cost-effective if an employee or customer was to suffer an injury or accident on your premises.
Is shop insurance mandatory?
You are not legally required to insure the contents or building of your business. However, employers must have employers’ liability insurance if they have other people working for them. This means that you are fully insured should one of your employees be involved in an accident in the course of their work for you.
What level of cover is necessary for me?
There is a variety of different types of cover available and it is important to identify which types are applicable to your business.
Building insurance ensures that you are able to claim on your policy if the physical building of your business is destroyed or damaged by events such as fire or explosions. Different policies will cover various events, so it’s essential to check the terms of your policy before taking it out. Additionally, if you are renting your company premises, your landlord may already have this type of insurance, so it is worth checking beforehand.
Contents insurance covers all the contents of your business premises such as equipment and furniture. Generally, stock is excluded from contents insurance and you will need to take out insurance cover for your stock separately. This can increase your shop insurance costs but it is worth taking out both contents insurance and stock insurance if you want to be fully covered.
Stock insurance is exactly what it sounds like. It will cover all the stock that you keep at your business premises. You can generally claim for stock if it is damaged, stolen, or destroyed.
If your stock, such as food items, cause harm to someone who uses or consumes them, product liability can protect you. Without product liability insurance, you could be personally liable if you are sued as a result of any harm your products cause.
If you regularly have customers coming into your premises, there is always the risk that someone could suffer an accident or injury such as a trip, fall or wound. Public liability insurance gives you financial protection in the event of this occurring.
Employers’ liability is the only type of insurance for shop owners that is legally required. It can cover you if an employee or staff member suffers an injury during the course of their job.
Business interruption insurance
If your business cannot operate on a temporary basis because of illness, injury, flooding or some other kind of interruption, then you will be covered by this type of insurance policy. It will ensure that you don’t lose money by having to pay rent on your premises even when your business is not operational.
Does shop insurance cover “Acts of God”?
Many policies for shop insurance do not inherently cover Acts of God such as floods. For businesses that are located in areas where there is a high flood risk, then it may be necessary to take out extra cover. If you’re in an area where this is the case, it may be beneficial to enquire about adding this on. While it may cost extra, it could be financially advantageous to you in the longer term.
Is shop insurance necessary for online-only stores?
Online stores will often need to take out many of the same types of policies that bricks and mortar stores need. For example, if you keep a lot of stock, it could still suffer damage, wherever it is located. Additionally, you could still be at risk of having to cover the cost of legal action if one of your products causes some kind of harm and you don’t have product liability insurance. It’s always worth contacting a reliable and trusted broker to see what level of cover will be best for you.
The cost of shop insurance will vary depending on the level of cover that you choose. Generally, there are policies to suit every budget. Please share this article with your contacts and get in touch with us at Arkwright Insurance Brokers for advice. Our helpful and friendly team will be happy to provide you with assistance, shop insurance quotes, and any further information you need.