There’s something quite exciting about running your own shop, isn’t there? Opening up that fresh batch of stock, putting up a new window display and welcoming in customers is all part of the fun, as is closing up for the day and having a well-earned rest. We know that keeping your shop safe is of the highest priority, but that finding the time to choose the correct insurance policy isn’t always feasible. This is why we’ve created this Shop & Retailer Insurance guide – to help make this process a whole lot easier. And should you have any further questions, we’d be happy to help in any way we can. Simply get in touch with us at a time that suits you, and we can offer even greater insight, and find you suitable shop insurance quotes too.
What is shop insurance, and what does it cover?
Shop Insurance is an umbrella term for policies such as Bakery Insurance, Bridal Shop Insurance, Butchers Insurance and Tearoom Insurance, and can include cover such as Employers’ Liability, Public Liability Insurance and Product Liability, as well as Shop Premises Insurance, Business Interruption Insurance and Stock & Contents Cover. Designed for a range of shops including newsagents, pet shops, butchers and bakers, these insurance policies can provide protection from unexpected events, and be tailored to your unique range of business requirements.
We know that you’d never intentionally harm your staff, clients or customers, but accidents do happen, and compensation is usually sought. Along with unexpected events such as theft and inventory damage, it’s always best to have a back up plan to cover replacement costs, so that it’s not you that is left out of pocket.
By including a range of insurance policies under one policy, it also makes the shop insurance claims process, as well as the renewal process, much easier. A Shop Insurance policy means you only have one policy to deal with, and one renewal date to remember. You don’t want to have to spend long hours administrating various insurance covers and policies for different aspects of your business, and with this cover, you’ll never have to.
From Bakery Insurance, Boutique Insurance and Butchers Insurance through to Florists Insurance, Pet Shop Insurance and Coffee Shop Insurance, there are many types of Commercial Shop Insurance out there. The policy may include:
1) Shop Premises Insurance: If you rent your shop’s premises from a landlord, then it is quite likely you won’t need this insurance policy (we would suggest contacting your commercial landlord to confirm this). However, should you own your shop, then Shop Premises Insurance can cover the cost of repairing damage to the structure of your property. The rebuild cost is the amount you should insure for in case you need to completely rebuild from the ground up, and here at The Insurance Octopus, our cover will pay for the cost of rebuilding your shop, as well as the costs related with getting it up and running again. What’s more, your retail establishment can be covered against risks such as storms, fires, floods, earthquakes and vandalism too.
2) Stock & Contents Cover: Regardless of whether you run a bakery, bridal shop, coffee shop or newsagents, you rely on key stock to keep you in business, and to provide customers with the products they’re looking for. Would your business survive if all of your stock had been damaged, stolen, or gone to spoil – perhaps due to an unexpected unfridgeration issue? Stock Insurance can protect your shop’s ingredients, merchandise and goods, and provide compensation for replacements.
Contents Cover can protect any personal belongings that you keep onsite. Under this insurance policy, we can also cover the business equipment needed to run your shop, including point of sale systems, computer systems and necessary machinery such as ovens and microwaves.
3) Portable Equipment Cover: Are business mobile phones a fundamental part of your business? Do laptops play a part, and what about industry-specific technology or equipment such as coffee machines, florist knives or pet cages? Portable Equipment Cover can provide compensation for replacements should equipment ever be damaged or stolen, ensuring that you always have the right equipment, and when you need it the most.
Please note: Your portable equipment may not be covered under your standard contents insurance, so make sure you check your policy to protect this equipment.
4) Business Interruption Insurance: This policy covers you in the event that your business suffers a loss of income due to a disaster or loss, in unforeseen circumstances. Holdups with stock, a loss of license, vandalism, or even natural disasters such as flooding, a fire or storm damage can make trading impossible, and therefore it’s important that you get up and running again as quickly as you can. Our business interruption cover typically covers the following:
- Profit: Any profits that would have been earned during the time that your shop is out of action.
- Disruption: Any power, telecommunications and water disruption costs due to service providers.
- Fixed costs: Any ongoing and continuous operating costs that you incur even though your retail establishment is not operating, which is based on historical cost reports.
- Temporary location: The expenses you may suffer due to having to relocate or operate from a temporary location.
- Some additional expenses: With the reimbursement of ‘reasonable expenses’ that enable the business to continue its operations whilst the shop’s premises is being repaired.
5) Seasonal Increases: Perhaps nowhere more prevalent in shops and at retailers do stock levels fluctuate throughout the year – especially if you see customers buying certain cakes or biscuits more frequently at Easter, or gifts more regularly during the Christmas and holiday season. As a shop manager, you need to ensure that you have enough stock to meet demand, and therefore, help you make you as much profit as possible.
If your current policy only covers you for a specified number – or amount – of stock, then covering any increases in stock to protect it in the event of damage, theft or destruction is a good shout. This policy also means that your ‘sums insured’ can also increase, covering your whole inventory.
6) Product Liability: This policy covers your shop against claims of personal injury or property damage caused by products sold or supplied through your business. Even if you don’t manufacture the products yourself, you may still be held liable, especially if your business’s name is on the products you sell, or you’ve repaired or made changes to said products. Faulty products can impact the reputation of your shop, especially where online reviews are concerned. Product Liability can cover the costs of any compensation sought.
7) Employers’ Liability: With your staff being the backbone of your business, how they’re treated is usually reflected in the customer service that they, themselves, provide. Staff like to know that they’ll be taken care of should an accident happen, and that their managers and bosses have their best interests at heart. Employers’ Liability for shop owners protects them against the costs of employees making claims for compensation – for example if they become unwell or suffer an injury due to working with, or for, you.
Please note: It is a legal requirement in the UK to have at least £5 million Employers’ Liability Insurance if you have any staff.
8) Fixtures & Fittings Cover: Is your shop the most stylish in town, adorned with shelving units, glassware and fantastic designs that can’t help but draw people in? Or maybe you’re more into functional design, yet still have cupboards, dressing rooms and tables that do just the trick? Whatever your preference, you know that dressing your shop truly adds something special, and highlights the beauty of your stock. At The Insurance Octopus, our Fixtures & Fittings insurance covers loss of, and damage to, these key pieces, as well as any structures you have built yourself. Any branded signage can also be covered.
Shop Insurance can also cover Public Liability, Personal Accident Insurance, Business Legal Protection and Loss of Money, among other useful policies. It’s important that with all policies that you check the specific terms and conditions outlined so that you know the exact cover you have, and not be left with any nasty surprises when you need the cover the most.
How does retailer insurance differ, and what are the benefits of these policies?
We regularly get asked, ‘’What is Retail Insurance?’’ To be honest, Shop Insurance, and Retail Insurance are actually pretty similar. Retail Insurance is aimed at retailers looking to protect their business from potential threats such as inventory damage, loss of money, and Public Liability. Covering a range of risks involved with running a high street chain, independent store or boutique, Retail Shop Insurance can help to keep your establishment safe, and your business protected. This policy can also account for differences between retailers, even those from within the same industry.
For example, the level of Stock cover needed for Tearoom Insurance, Pet Shop Insurance and Coffee Shop Insurance may vary greatly, and dependent on retail space and location, the level of Shop Premises Insurance and Business Interruption Insurance too. Retailer Business Insurance acts as a safety net, giving retailers peace of mind knowing that their retail business is protected as specified in their insurance policy.
These insurance policies provide advantages, such as:
- Protection from risks such as Public Liability, Loss of Money and Product Liability, as well as Business Interruption, Theft By Employees and Cyber Attacks. Shop Insurance also ensures that the effect of losses on your business processes and practices is minimal, and that you can get back to working efficiently as quickly as possible.
- It shows a duty of care to your customers, staff, local area and members of the public, as well as protecting you should you be caused harm.
- Policies can be tailored to the size of your business, the number of staff, your industry, business operations, and location.
- Offers simplicity. Instead of dealing with 5 different brokers or 5 different policies, you deal with one company, and one policy. This saves time, minimises stress and makes your insurance considerably easier to stay on top of.
- Provides cost savings. It’s often cheaper to combine all your insurance needs into one policy, as it often attracts bulk discounts from your insurer. This makes it cheaper than having multiple, individual policies.
Your shop & retailer insurance questions answered
What insurance do I need for a shop?
The insurance you need for your shop depends on your business and the specific risks you would like to cover. For example, the needs of a tearoom, coffee shop or cafe will differ from a pet shop, newsagents and florists. That being said, there are some policies that all types of shops can benefit from, including: Public Liability; Product Liability; Employers’ Liability; Shop Premises Insurance (if required); Contents Insurance; Stock Cover; Business Interruption Insurance.
Do I need insurance for an online shop?
Even if your shop is run as an online business, you can still fall victim to many of the same risks that brick and mortar shops and retailers face. As an online retailer, you’ll still have stock that is at risk of damage and theft, and you will still legally require Employers’ Liability Insurance, if you’re responsible for any team members, or staff.
Online Retailer Insurance can cover you against:
- Property damage and injuries caused by the products you sell online.
- Employees who get injured or ill as a result of working for you.
- Your financial losses if an unexpected insured event stops you trading.
- Loss of, and accidental damage to, your stock and business equipment.
- The costs of keeping your business going if you have an accident.
At The Insurance Octopus, we can also provide cover for packages that go missing, as well as stolen stock, and if combined with Cyber Insurance, your online shop will be protected from data breaches, hacking and other forms of cyber security risks too.
What if I diversify my offering during my policy’s period?
If your circumstances change during your period of insurance – for example – because you need to cover new stock not featured on your policy, then you should contact your insurer, or insurance broker, to get this sorted. Leaving this out could mean a refusal of compensation, so we recommend updating your insurer as soon as possible.
Should you wish to update a policy with us, you can reach our customer services team on 0161 968 2030 today.
Get In Touch With The Insurance Octopus
In need of Bakery Insurance, Butchers Insurance, or Pet Shop Insurance? Is Tearoom Insurance, Coffee Shop Insurance, or Newsagent Insurance better suited to your needs? Whatever you’re after, we can help you find a policy that can keep you protected. For more information on our insurance policies, please get in touch with us today on 0161 968 2041 for your very own Shop Insurance quotes.