Whether it’s a newsagents, a clothes store or a florist, having insurance for your shop is crucial. No matter what size your retail business, protecting yourself from the unexpected will help to minimise the risk of devastating losses and give you that extra peace of mind.
When taking out business insurance, it’s important to find a policy that is tailored to your specific needs. However, knowing what type of coverage you require isn’t always an easy task. To help simplify the process, here’s some of the main types of cover for retailers:
Public and employer’s liability cover
Public liability insurance offers cover against claims made by members of the public who have suffered an accident or injury, or their property is damaged because of your business. Although it is not a legal obligation, public liability cover is generally considered necessary if your business will be used by members of the public, whether it’s a client visiting your premises, or a customer receiving a delivery from your shop.
If your business has employees, contractors or casual members of staff, having employer’s liability insurance is required by law. This protects your business from any claims made by staff members who have become ill or injured while carrying out their work.
Buildings cover ensures that your commercial property is protected in the event of an unexpected disaster, such as a flood, fire, or any accidental damage. This may also include permanent fixtures, such as fitted kitchens. However, if you rent your business space, it may not be necessary to take out buildings cover, although it’s always a good idea to check with the landlord to make sure.
Fixtures and fittings
As well as the building itself, you also need to consider what’s inside it. Every business has contents that may need to be insured – anything from shelving, to counters, to office supplies, to fridges. However, it’s important to remember that contents and fixtures and fittings cover will insure different items, so make sure you know what’s what before you purchase a policy.
Every retail business, no matter how big or small, will have some kind of stock. If any items of your business are stolen, damaged or destroyed, stock insurance will ensure that you’ll be reimbursed for your loss. Some items, such as cigarettes and alcohol (also referred to as target stock), are considered high risk items and may need to be a separate part of the plan. It’s also important to insure your stock at the cost price, rather than the retail price.
Most retailers handle cash on a daily basis, and taking out money insurance will ensure that you are covered in the event of a theft, fire or flood, or if your money is lost while in transit. Most insurance providers will have a set limit for money cover, although this can be increased for larger businesses.
Before taking out a policy, it’s important to check the features and benefits to make sure that you are getting the right amount of cover for your requirements. It’s also a good idea to check for any excesses and exclusions before you buy. If you take out a standard business insurance plan, you can always tailor it to suit you needs by adding on extras, such as shop front or goods in transit cover.