Cowens Guide to Shop and Retail Insurance – Businesses are often at risk of accidents or mistakes. From trips and slips to flooding and thefts, claims can occur at any time, so regardless of whether you are a baker, florist or online retailer, you will need business insurance to protect you, your business or the products you sell. As a business owner, your time is precious and you may not have the time to think about your insurance requirements and why they are important. Insurance policies can seem complex, but it can be relatively simple with the right guidance to help you.
What is Shop and Retail Insurance?
Shop and Retail insurance can provide cover for shops, supermarkets, cafes, takeaways and other similar businesses. Covers available include employers’ liability, public liability, product liability, business interruption, stock & contents cover. These covers are designed to protect against unexpected events and can be tailored to your business needs.
A shop or retail insurance policy means you only have to deal with one policy with one renewal date, which could save you time and money.
Why do I need this at all?
The workplace is full of risks, and it is important that you and your business are protected. There could be material damage losses such as fire, flood and theft. You could be legally liable to pay for any injuries inflicted on members of the public or damage to their belongings as a result of your negligence. If you have employees, you are required by law to have Employers’ Liability Insurance. If your employees are then injured due to your negligence, you would be liable to make compensation payments. Any of these events could put you and your business into financial difficulty.
Do I need insurance for an online shop?
Even if you run an online shop or a small business, you can still fall victim to risks that brick and mortar shops and retailers face, with additional considerations such as cyber risks. As an online business owner, your stock is at risk of damage or theft, and you are still legally required to have employers’ liability insurance if you have employees.
What does it cover?
There are many covers included in this policy. They include but are not limited to the following:
Material damage cover such as fixtures and fittings, stock and contents: This cover protects your shop contents including fixtures, displays, racking and stock if they are damaged, stolen or lost as a result of an insured peril. Business equipment such as computer systems, point of sale systems and machinery can also be covered under this policy.
Portable equipment cover: Are laptops or business phones important to your business? If your equipment is damaged or stolen away from the main premises, this cover can provide the appropriate protection.
Products liability: This cover protects your business should a third party incur damages or injury as a result of a fault with a product you have sold to them. Cover includes liability for legal fees and compensation in relation to the claim
Public liability insurance: This cover is designed to cover the cost of legal expenses and compensation which arises from the allegation of a negligent act by third parties. In the main, these will be liabilities which emanate from your business premises or from actions of your workers at other locations, in connection with your business activities.
Employers’ liability: Under the Employers’ Liability (compulsory insurance) Act 1969, most employers are legally obliged to have this insurance cover. It is designed to provide indemnity for the cost of legal expenses and compensation to employees for injury or illness caused at work due to the company’s negligence.
Business interruption insurance: The covers referred to in this class can be one of the most important of all covers for you. Established businesses that suffer a major loss are unlikely to survive unless their Business Interruption cover is correctly arranged. Cover can be provided for the increased costs of working and/or the loss of revenues flowing directly from Insured material damage.
Cyber insurance: Policies available in this class are designed to provide an indemnity to you for the consequences of a loss of data. The cover is focused on providing mitigation and prevention of loss, in addition to compensation for affected third parties. Standard cover in this class does not extend to you losing your own money by cyber-attack, although some policies can be extended to provide cover in this area.
Cowens Guide to Shop and Retail Insurance