Preparing to go in to business is a big step and comes with many considerations and risks. You have invested time and money in to making your business a success, so it is vital to minimise the risks of failure or loss. Shop insurance is designed to cover the risks to your business if something happens to your premises, stock, staff, or ability to trade normally. A broken window may seem like nothing more than an inconvenience, but if it stops you from serving your customers it will affect your profits.
Shop insurance covers; Business Interruption, stock damage through fire or flood, theft of goods or money, damage to property, and legal expenses. It may be bought as a package, with pre-set levels of cover in each area, or it may be a bespoke package put together specifically for your business. Some package insurances also include Public Liability and Employers Liability cover as standard and have the option of Goods in Transit and Loss of Licence cover. If you are renting your premises make sure that your landlord has the building insured, otherwise you may also need this option.
Business Interruption insurance is also known as Loss of Profit cover. If you are unable to trade, due to a fire or flood, your insurance will pay for repairs and will also replace the profit you would have made. Covering your stock against theft or damage, whilst on your premises, is essential and you should also consider Goods in Transit. Goods that you are delivering may not be covered by your vehicle insurance.
You are required to provide a safe environment for your customers and employees. Public Liability and Employers Liability insurance are the back up for when the unexpected accident happens. For any business employing more than 5 people, Employers Liability cover is a legal requirement.
Some shops require specialist insurance cover. If you are selling goods that are considered dangerous, for example, fireworks, do not rely on a standard insurance package being suitable for you. Licensed premises will also need to take out Loss of Licence cover to provide against the risk of losing your licence through no fault of your own.
Whether you insure through a broker, your bank or direct with an insurance provider, always make sure you read the small print and know what exclusions and excesses apply.