Industry Guide to Retail Insurance

The UK retail industry is big business, employing 2.8 million people in 2015 over 290,315 shops and taking a huge £339 billion over the same year(1).

Shops come in a variety of shapes and sizes and cover a range of different sectors, from convenience stores to pet shops, opticians to off-licences, and dry cleaners to florists, bakers and butchers.

It’s only natural therefore, that when looking for business insurance for your retail outlet, there’s no one-size-fits-all solution.

To help you choose the right cover for your retail business, here’s a quick overview of the different types of insurance you may need.

Employers Liability

This is the only cover you’re legally obliged to have if you employ another person. It covers compensation and legal costs in the event that an employee is injured, becomes ill, or dies as a result of working for you.

This also covers work-related stress or anxiety.

Buildings Cover

Buildings cover will help keep you afloat if your property is damaged through fire, theft or storm damage. Your premises should be insured for the full cost of rebuilding.

If you lease your premises, the property owner may already have buildings cover.

Contents Cover

The contents of your shop – your stock, along with any fixtures and fittings such as your cash register – are the lifeblood of your business. They need protection against damage from theft and vandalism, as well as fire and flood damage.

They should be insured at cost price, without including any profit, but ensure you have adequate cover for seasonal events such as Christmas, when you may have more products in stock.

Public and Product Liability

Public liability covers the cost of compensation and legal fees if a member of the public dies, is injured, or suffers damage to their property through you or your employees’ negligence.

Product liability provides cover to somebody for injury or damage to their property because of a fault in an item you’ve sold, manufactured or designed.

Business Interruption

If it isn’t business as usual because your premises has been damaged, business interruption insurance covers your overheads, wages, and contributes to loss of profits, and any increased costs you face while getting your business back on track.

If you have to relocate, temporarily or permanently, it may also cover relocation costs and the cost of advertising your new location.

Money

Money insurance replaces money stolen from your premises, including in a safe, or being transported to the bank. Depending on the policy, it may cover injury to you or your staff in an attempted robbery while carrying business money.

Goods in Transit

This provides protection if your goods are lost, damaged or stolen while in transit, either in your own vehicles or with a third party carrier.

This gives you an overview of the main types of insurance cover you may need for your retail business, but it’s by no means exhaustive. It’s recommended that you speak to a specialist broker who can advise you on the right cover for your business.

 

1. http://www.retaileconomics.co.uk/library-retail-stats-and-facts.asp

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