What’s included in a Retail Business Insurance policy?
From small independent boutiques through to multi-site mini-markets, and even franchise operations, no two shops are the same. Consequently, a Shop Insurance policy really ought to be tailored around the business specifically. There are typically a number of considerations and cover options that should be considered:
Liability insurance for shops
As a shop owner or manager, you face a number of potential liability claims, anyone of which could represent significant cost to the business, not to mention lost time and a great deal of stress for you as the business owner.
Public Liability for Shops
Particularly if you run a retail business with physical premises that customers visit, Public Liability is a ‘must have’ for shopkeepers. Up to an agreed indemnity limit (the maximum amount that the policy will pay out in the event of a claim), Public Liability Insurance will protect the business from the cost of defending a claim made by a member of the public where they have suffered a loss or been injured as a consequence of your business activity. It could be as simple as them slipping on a freshly mopped floor, or a retail display collapsing on them. Public Liability Insurance will cover the costs for your legal defence against the claim, as well as pay out any compensation that is subsequently awarded.
Employers’ Liability for shops
Where you have any staff, even casual or part time, you are required to have Employers’ Liability Insurance in place by law. So, even if you just have a ‘Saturday Person’ serving customers at the weekend, your Retail Business Insurance policy will need to include Employers’ Liability Insurance. It works in a similar way to Public Liability Insurance, protecting the business from the costs involved where a member of staff alleges that they have been injured or suffered a loss as a consequence of their work for the business.
Products Liability for shops
When a customer buys something from your shop, you enter into a contract with them. Should whatever they bought subsequently be deemed to be unfit for purpose, faulty, or in some other way inadequate, you may be liable, even though you didn’t manufacture the item.
Products Liability Insurance can be invaluable for shops. It protects you from the costs associated with claims of illness, injury or damage to property as a result of a product you sold or supplied. Indemnity limits can be set to reflect the likelihood and potential extent of any claim.
Retail business buildings and contents cover
No matter whether you own or rent your retail premises, you should have insurance in place in the event that the building is damaged or destroyed. A fire, flood or even an act of vandalism could prove costly and massively inconvenient. Buildings cover is likely to be a condition of your tenancy agreement where you rent. If you own your own property, it’s likely to be a significant asset that should be protected. Where you have a mortgage, it is again likely to be a condition of your mortgage provider that you have adequate protection in place.
Point of sale displays, shop furniture and fittings, security and stock control equipment, including tills and PC’s, can soon add up to significant investment. Contents cover provides you with cover in the event that they are lost, stolen or damaged.
Shop stock cover
Your stock is the lifeblood of your retail business. You can’t sell what you don’t have! Insuring stock adequately is important. But shops vary enormously, and what cover is most appropriate can be quite different from one retailer to another. The total value of stock, where it’s held, whether it needs to be insured out on the road, if you offer a delivery service, are all considerations. Similarly, you may sell products that are particularly attractive to thieves. Where your business is seasonal, it may be that the value of your stock fluctuates significantly. All these considerations should be taken into account when purchasing shop stock insurance, and it’s worth speaking to an advisor before taking out cover.
Cyber liability Insurance for retailers
Many ‘physical’ shops also have an online presence or an e-Shop. It could be that you retail exclusively online. Even if you only sell ‘in store’ its likely that you capture customers details as part of the sales process, or because you offer some form of loyalty scheme.
Cyber liability insurance can be critical for retailers, and will protect you from costs in the event that you suffer a malware attack which prevents you from trading, or where a data breach means that your customers personal details fall into the wrong hands.