What optional covers should I combine with my Retail and Shop Insurance policy?
Do you have employees?
If you employ anyone outside of your immediate family, including casual workers, part-time workers and temporary staff or trade as a limited company, then the law requires you to have Employers Liability cover for injury or sickness claims from employees to a minimum level of at least £5 million.
You should check carefully if you need it, because you can be fined up to £2,500 for each day you do not have suitable cover in place.
Do you have contact with third parties?
Any business which involves contact with customers should consider Public Liability cover. If you or your business ends up being responsible for injuring someone or causing damage or destruction to their property, then public liability insurance can cover the costs related to someone making a claim against you.
Do you sell products to consumers?
Many businesses take our Product Liability insurance to protect them from legal costs and damages awarded as the result of claims made against them under product liability laws.
If your business supplies products to consumers, you need to make sure that they are safe. Most of the responsibility falls on the manufacturer, importers or those businesses that supply own-brand products; including those that change, customise or service the commodities as the modification can affect the safety of the product. Shops and retailers however, also have legal responsibilities for all the products that they stock and sell.
Anyone who is harmed by an unsafe product that you have sold can place a claim against you. You can be sued by an individual who is injured by an unsafe product that you have supplied even if they didn’t buy the product themselves.
While a claim can be placed against you for compensation for death or injury, individuals also have the right to claim for damage or loss of private property caused by faulty goods.
Do you have stock as part of your business?
Stock is unique to every business, and could be anything from food and drink, items of clothing, or electronic equipment. Insuring your stock with stock cover is vitally important as it will cover the cost of replacing your stock at cost price if it is damaged, destroyed or stolen. Loss of stock can cripple a business so it’s important to ensure it is fully protected.
Do you have business premises?
If you run a shop or retail business from a unit or building that you own, then buildings insurance covers the cost of repairing or rebuilding your business premises if they are damaged or destroyed by an unexpected crises such as fire or flooding. You should insure your business premises against the cost or rebuilding the property, not against its market value or sale price.
If you own your business property, then you should consider buildings insurance to cover you. If you rent your business premises, then buildings insurance is your landlord’s responsibility – but you should contact your commercial landlord to make sure they have not made you responsible by contract.
You may also want to consider taking out contents, shop fronting and fixtures and fittings cover which covers the cost of replacing your business’ equipment, permanent fixtures and shop front if they are damaged or stolen.
For more information about available additional policy covers, get in touch with our insurance specialists.