Shop owners can be exposed to a number of risks. Claims from the public or employees or losses due to theft are common. Having the correct insurance will guard against financial liability, and owners should compare shop insurance quotes to get the best deal.
There are several types of insurance the shops will need to be fully protected, but at the minimum public liability, employer liability, and contents insurance will be purchased. Other policy types and add ons are available, and shop owners will need to consider which coverage is needed for their business carefully.
Types of shop insurance
Selling items and having frequent contact with the public means that shop owners could receive a number of different claims types. For example, accidents on the premises, damage to property, or injury caused by sold products could result in legal proceedings.
To protect against claims and associated expenses, owners will want to ensure that they are fully insured against damages and losses. The different types of shop insurance that owners can purchase to protect themselves, their business, and their stock are:
Employers Liability insurance
For companies that have employees, this insurance is required by law. It protects the employer from claims brought by the employee for injuries or illnesses sustained while working. Claims of this type can be due to poor working conditions, inadequate training or faulty equipment, for example. Unsafe practices that cause employee accidents will result in claims. Costs can accumulate quickly for medical treatment, compensation, and loss of earnings, so employers liability insurance will be needed to cover the cost.
Public Liability Insurance
Any business that allows customers to enter the premises can be subject to a public liability claim. Many public liability claims are for slips, trips, and falls. Wet floors, uneven carpeting, and loose flooring can all generate a lawsuit. Without public liability insurance, the shop owner will be personally financially responsible for covering the cost of claims proceedings and compensation.
Product Liability Insurance
If any products sold cause harm to an end-user, product liability would pay for the damages. This insurance usually goes hand in hand with product liability and is purchased by shop owners to cover liability for products made or sold by them.
Business Contents Insurance
The cost of replacing stock or inventory can be substantial, and missed sales can lose revenue. Business contents insurance will cover losses caused by theft or damage related to issues like fires or flooding. Stock items and shop fixtures and fittings will be protected under this insurance. Items like computers, printers, or other equipment will not be included. These items will need to be covered under Business Equipment Insurance.
Professional Indemnity Insurance
Shop owners that provide professional advice or offer a service may need to acquire professional indemnity insurance. This will shield against claims made by customers for negligence or errors. It can also protect from issues arising out of misunderstandings or poor communication.
Personal Accident & Critical Illness Cover
Shop owners who suffer a job-related accident or become critically ill and cannot work will be protected against income loss with this type of cover. For many smaller business owners that are dependent on their shop’s income, personal accident and critical illness cover can provide a financial safety net during times of crisis.
Commercial Buildings Insurance
For owners that have bought their premises, commercial buildings insurance will protect against losses caused by things like fires or floods. It will also protect owners from financial losses caused by theft and other problems. However, this insurance is only required if the building is owned; it does not apply to shop owners that lease or rent their business premises.
Business Interruption Cover
Suppose a shop is unable to trade due to issues beyond the owner’s control. In that case, business interruption insurance can reimburse for lost sales and cover other expenses until the business is able to operate normally. This can bridge the financial gap while premises are repaired from fire damage or dried out after flooding.
Do shops have to have public liability insurance?
As shops frequently have customers on the premises, there is a high chance of accidents happening involving public members. If this happens, a claim is likely to be brought against the company. Public liability claims can be expensive. The average claim exceeds £13k. While this type of insurance is not mandatory, any business that interacts with customers will need to have it in place. It may also be required by landlords that lease premises to shop owners as part of the rental agreement.
Do shops have to have insurance for theft?
For business owners that sell products, the cost of replacing an entire stock that is stolen or damaged due to fire can be financially crippling. Insurance against theft in the form of business contents insurance is not legally required, but it makes sound financial sense for shop owners to have it in place.