A Shop Insurance Guide - choosing the relevant insurance
If you are a shop owner, it is essential that your business has the correct insurance package in place. Although not all types of shop insurance are obligatory, you should seriously consider insuring your shop in some, if not all of these areas: employers’ and public liability; business interruption; buildings and money; and contents cover.
Employers’ liability is one of the key policies in this sector. Whether they are cleaners, checkout assistants, shelf stackers or supervisors, your employees can be at risk of trip or slip accidents if the correct health and safety measures are not implemented. However safety-conscious you may be, it can be all too easy for discrepancies in safety to go unnoticed.
This guide hopes to help you better judge how to transfer this type of workplace risk by providing you with a straightforward explanation of the shop insurance options available to you.
Liability Insurance
Employers’ Liability Insurance
Any business that has employees is required by law to have employer’s liability insurance. If you are found to be trading without this, you could be landed with a very hefty fine.
If you are a shop owner, your employees could be doing a wide range of jobs in order to ensure the smooth running of the store. Although some of these jobs appear to be relatively low-risk compared to working in a factory or a building site, a surprisingly large number of work-related accident compensation claims occur within this sector.
A good example of a common shop claim is repetitive strain injury, which can affect the wrists, elbows and shoulders of checkout assistants and other such workers. Claims for repetitive strain injury typically vary between £2,000 for a minor injury to £86,500 for severe neck injuries. There is a wide range of accidents like these that can be easily sustained in a shop environment, so taking out employers’ liability insurance could be crucial to the future of your business.
Public Liability Insurance
This is another fundamental aspect of shop insurance. Unexpected accidents can have extremely serious consequences for your customers, and you should consider covering yourself against litigation that may result from such an event.
Solicitors David Phillips and Partners report on their website that a shop customer received £3,625 in damages after she suffered a fractured wrist and a bruised head after falling on a shop staircase. For many business owners, such an amount of money could seriously jeopardise their company. So, if your business sees customers visiting your premises public liability insurance could be extremely valuable insurance for you.
Business Interruption, Buildings & Money Cover
Business Interruption
This is typically bundled with the standard shop insurance package. It means that if your shop suffers a fire or some other insured risk and you need to close down for some time, you will get your money back for lost net profits and the necessary continuing expenses via your business insurance policy.
Buildings
This is usually either bundled with a standard shop insurance package or provided as an optional extra. It could be extremely important cover if you occupy additional buildings in connection with your shop, including outbuildings, walls, gates, fences and drives around them.
It is essential to protect your building, whether you own it or lease it, as even the strangest of incidents could leave you in a vulnerable position. For example, earlier this year the BBC reported of a Lincolnshire shop owner who was left devastated after a fire caused £250,000 of damage to his shop. After investigations were carried out, it transpired that the fire was actually caused by a bird carrying a lit cigarette back to its nest.
Money Cover
Under this cover, if money kept on the business premises is stolen you will be covered for its loss. It is worthwhile mentioning that cheques and items such as stamps, gift vouchers, tokens and postal orders are also considered as money in this case.
Contents Insurance
The potential cost to your business if something goes wrong with your machinery, stock, computer records, documents, fixtures and fitting could be many thousands of pounds. The extent of cover provided for contents varies. Cover can be provided on an all risks basis or on a fire or perils basis only. It is important to note that the contents cover could also prove useful if you need to obtain new keys & locks after a theft.
As no two businesses are the same, there are a range of different packages available to shop owners. Higher levels of cover are available depending on your specific needs.
Shop Insurance Add-Ons: Buildings
Loss of Rent
The amount payable under this extension is usually limited to a percentage of the buildings sum insured. Cover is provided for the loss of rent payable to the insured if he lets out part of the premises and does not receive the rent from his tenant following insured damage. It would also cover any loss of rent the insured has to pay to his landlord if he cannot occupy the property due to insured damage.
It is worth mentioning that this cover is available to properties which are occupied and unoccupied, as well as those properties which are undergoing renovation or refurbishment.
Accidental Damage to Fixed Glass
This is particularly useful cover for shops as, in addition to providing cover for the cost of replacing broken glass and window frames, it covers the cost of boarding up as a result of accidental damage to fixed glass in windows, doors, show cases, counters and shelves. Some policies may also cover the cost of removing and replacing any contents outside of the window in order to replace the glass. However, it is worth noting that non-fixed glass is usually excluded.
Property Owners Liability Insurance
Cover here is usually provided up to a limit of £1 million or £2 million for any one occurrence. This cover enables you to meet any costs and damages awarded to a customer or passerby if they are involved in an accident associated with your shop. It is important to note that hospital treatment and ambulance costs claimed by the NHS are also covered by this policy, which can be significant as the new NHS Injury Costs Recovery (ICR) scheme has now come into force.
Trace and Access Cover
This extension would provide for the cost of identifying where a water leak had originated. This typically includes the removal of floorboards, or even parts of walls, to gain access to the damaged pipe. The cost of repairing any damage caused to these floorboards or walls is also included. However, please keep in mind that the cost of repairing the leaking pipe itself is not included.
Please note that a monetary limit usually applies to the cover provided by this extension.
Shop Insurance Add-Ons: Contents
Theft of Keys – in case you require new keys and a lock if your keys were to be stolen.
Exhibitions Cover - for a little extra, your shop will be covered for damage to the property while at an exhibition. This is usually subject to a monetary limit for any one claim.
Loss of Metered Water - this is a relatively cheap add-on. Your shop will be covered for the loss of metered water with this cover, which also covers extra charges following insured damage, usually with a limit as high as £20,000.
Other Insurance Extras
Personal Accident & Assault
Even if you are running a very small shop, it could be well worth paying a few extra pounds for this type of cover. It is commonly an extension to the money sectionand pays a fiscal benefit in the event of an employee sustaining a physical injury as a result of a violent attack following a theft or attempted theft of the insured's money.
The Personal Accident & Assault policy is a common extension to the money section of shop insurance and would usually be a set amount between £10,000 and £25,000 for death, loss of limbs or sight or permanent disablement.
Fidelity Guarantee
This type of insurance could be very worthwhile for your business as research suggests that small businesses are three times more likely to suffer from fraudulent activities than the average UK resident. According to a study carried out by Experian, the number of cases of business fraud encountered reached over 6,000 in total last year.
If you are interested in any of the insurance types given above, you can get a quick shop insurance online quote by visiting our shop insurance page.
Alternatively, if you would like to discuss your business’ insurance requirements in more detail, please don’t hesitate to call us on the following number: 08081 68 68 68.
