Owning and running a shop can be hard enough work in itself, often seven days a week, without the additional worry of what might happen to your livelihood should the worst happen. Fortunately there are many different shop insurance policies available today covering all the risks that a retailer might face in running a business from a premises that sells goods and services to the public.
A shop insurance policy will contain a variety of covers, packaged up for the convenience of the shopkeeper.
These include shop buildings and contents cover, stock in trade cover, business interruption and loss of profits, money cover and staff fidelity insurance, legal protection, window & glass cover for shop fronts, goods in transit, public liability, employers liability, and various options to cover shop specific risks. Shop insurance packages will include as standard most of the above risks, whilst some insurers allow the prospective policyholder to select the covers that are appropriate for their particular type of shop.
Shop Insurers use various basic rating factors to decide premiums and postcode and annual turnover are major factors.
The location of your shop will largely determine the price you pay for cover, in particular for shop stock and contents. A shop located in a run down housing estate with known propensity for theft and vandalism will command a much higher premium than one located in a modern shopping centre with street security and CCTV. Annual turnover is used to calculate cover levels such as the impact of a loss on a shops ability to trade.
Shop buildings insurance covers the costs of rebuilding the shop and the costs of replacing the shop front, which is invariably made of glass. All buildings insurance covers permanent fixtures and fittings such as toilets and doors. This cover is available for both shop owners and those who lease the property.
Shop contents insurance covers all the additional shop fittings and equipment that is used in the daily running of the business. Most insurance companies will require a breakdown of the contents of the shop into sums insured fo business equipment, fixtures and fittings, electrical and computer equipment, tenants improvements, refrigerated stock and all other stock.
Shops that require protection for high risk goods held on the premises will usually need to declare the total values of each stock item. High risk shop stock and goods are those that attract thieves and are expensive to replace. Examples of high risk stock items are electronic equipment, cigarettes, and tobacco, designer clothing, computers and digital equipment, software, computer games and consoles, drugs pharmacy and medicines, watches and jewellery, mobile phones and radios, photographic equipment, power tools, TVs, DVDs, CDs and Wines and Spirits.