Bike shops are unlike most other retailers. You’re selling, repairing and servicing wheeled vehicles that are used on the open road. As well as ensuring your store is covered for events such as fire, theft and accidents that take place at your premises, you must also protect your business from the financial impact of incidents that can happen many miles away.
Bicycle shop insurance is a package of different policies that can be tailored to your shop’s specific needs. Essential cover includes public liability and product liability insurance, plus employers’ liability to protect you and your employees. Other policies can be added to cover your building, shop contents, inventory, goods in transit, interruptions to doing business and many other risks.
Never mind the costs you could suffer if your shop caught fire, your goods in stock or transit were stolen, or your building was hit by storms or major flooding – your business is also vulnerable to crippling personal injury or property damage claims from members of the public, including customers and suppliers.
The fact is, it doesn’t take much to cause an accident. Imagine if a visitor to your store tripped over a poorly placed display and injured themselves. Or perhaps a defective bike part that you unknowingly supplied to a customer caused a serious road accident. The compensation claims from simple incidents like these could easily run into the tens or even hundreds of thousands of pounds.
In 2023, the average UK public liability claim was £13,500 plus defendant’s legal expenses. Even a sum like this could drive many SMEs into insolvency. Bike shop insurance is the only way to ensure your business is not at risk from events beyond your control.
You can bundle many types of policy into your bicycle shop insurance package to protect your business. Important cover includes:
Public liability insurance is a type of business insurance that protects your bike shop if someone is injured, or their property is damaged because of the services that you or your business provides. This type of cover, also known as PL or liability insurance, is designed to protect your shop against third-party claims for injuries or property damage from a customer or client, passer-by, or a visitor to your business premises – whether you’re at fault or not.
Product liability insurance (PL) can protect your bicycle shop from financial loss in the event that someone is harmed, or property is damaged due to the products that you supply. You don’t have to make the faulty products to be at risk. Your business could be held liable for personal injury or property damage caused by bikes, parts and accessories manufactured by other businesses. You may also be at risk even if you only repaired or refurbished a faulty product that caused an accident.
Employer’s liability (EL) insurance protects you and your employees, (including those who no longer work for you), should they be injured or become unwell as a result of working for your business. Under the Employers Liability Act of 1969, employers’ liability insurance is a legal requirement for most UK employers. Your policy must cover you for at least £5 million and come from an authorised insurer. Your business can be fined up to £2,500 for every day you are not properly insured.
Commercial property insurance, also known as building insurance, is designed to protect the owners of commercial buildings – such as your bike shop – from financial loss resulting from damage to or the total destruction of the property and/or whatever was inside. Commercial property insurance can also include business contents insurance which covers the insured for the loss, damage, and theft of the contents of their business premises, including shop equipment, inventory, employees’ property and customer cycles in for repair or servicing.
Goods in transit cover protects your customer deliveries and pick-ups – including cycles collected for repairs – from loss or theft in transit to and from your store.
Business interruption insurance covers bike shops for loss of income if they are unable to operate due to events beyond their control – such as severe weather or power cuts.
Portable equipment insurance, also known as tools Insurance or business equipment insurance, covers the cost of replacing your valuable workshop tools and equipment if they’re lost, damaged, or stolen.
Premiums for bicycle shop insurance can start at less than £40 per month, but just as no two bike shops are alike, no two bicycle shop insurance needs are the same. The price you pay will depend on your business location, your turnover, the types of products you sell and a host of other factors, making every quote unique.
All business involves risk, but that doesn’t mean you have to suffer the consequences if things go wrong. Don’t let a simple accident put a brake on your business. Contact Swoop today to compare top-quality bicycle shop insurance from a range of providers and to discuss all your business insurance needs.
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