Why shop insurance is important
At comparethemarket.com we like making it easy and fast to compare all the financial choices that people need to make in their daily lives.
Many of us run a small business or SME, which be fun, challenging, rewarding, worrying and, usually, very busy! Because of that you might not have the time or the appetite to spend hours researching the different insurance products your business might need. That’s why we’re here, to help you find the right cover, quickly and simply.
It might not be very exciting, but insurance is important – it could even save your business one day. Plus, there are some kinds that you legally have to have in place. So if you would like to understand a bit more about business insurance, and particularly shop insurance, you’re certainly in the right neck of the woods.
Three main things to protect
There are three main areas of insurance that you might be interested in for your shop, and they protect three main things.
The first is your bricks, mortar and what’s inside – your shop’s premises, stock and equipment, which are protected by buildings and contents insurance. The second is people – your employees and the general public. If you have one employee or more you will need employer’s liability insurance, and if you have customers on your premises you will need public liability insurance. We’ll come on to these in a moment.
The third area covers your finances. Some people like to protect against their business being unable to trade for a while. This is called business interruption insurance.
Speak to a specialist
You can compare shop insurance with comparethemarket.com and it’s nice and simple. Just choose the ‘shop’ option on our business insurance page and give us your details. An insurance specialist will give you a call. They’ll find you the most competitive prices for the different kinds of cover you might need.
They’ll ask you a few details about yourself, your shop – including what kind of shop it is, whether it’s a beauty salon, fish and chip shop or a computer supply store - and the types of cover you’re looking for. Next they’ll give you some quotes from insurance companies and talk through the details of the policies.
It’s important to discuss your needs with a specialist, because no two shops or businesses are the same. Insurers need to understand what your shop sells, how much it makes, how many staff you have, whether you have security grilles and more. It’s because they need work out the risks that your business could face and base your premium on that. The bigger your business, the more the risks and the potential cost of you needing to claim.
Important business insurance policies
Let’s look at the different bits of shop insurance in a bit more detail.
As we said above, buildings and contents insurance could be important. These work just like with your house insurance buildings and contents. If you own the building where your shop is located, you might choose buildings insurance. If you, like most shops, rent the space then your landlord would be responsible for the buildings insurance.
You will probably wish to choose contents insurance as this provides cover for all your stock, which would of course be very expensive to replace if there was a break-in or a fire. To protect this you need to work out how much it would cost to replace all your contents – your stock, but also furniture, fittings, tills, tools, maybe freezer contents etc. A further option is the protection of any cash on the premises, both during the day and when it’s locked up at night.
Because you have customers visiting the premises, it may worth buying public liability insurance. As owner, you’re responsible for making the shop as risk-free as possible, but unfortunately accidents do happen. With public liability cover, if someone is injured at your office or their property is damaged, you can claim on your insurance to cover any compensation due to them, or any legal costs if they take you to court.
If you have one employee or more, including volunteers, you need to have employers’ liability insurance – it’s a legal requirement. Again, this protects you if one of your staff has an accident or their property is damaged at work and they are due compensation. The minimum level of cover in the UK is £5m.
There are often a few options for additional cover that you might like to think about.
As we said earlier, some people choose to buy Business Interruption insurance to provide some money if the shop cannot trade for some reason. To buy this, you will need to confirm how much cover you would want and how long a period of interruption you wish to cover.
Hopefully this information has helped you understand the different parts involved in a shop policy. Now you can use comparethemarket.com to compare business insurance deals, the costs and the different levels of cover. One of our experts will be sure to help you find a deal that suits your business best.