Shop insurance

Shop insurance is an umbrella term for a range of business insurances that can give retailers protection against almost every type of negative event. Important insurance includes:

• Public Liability Insurance protects your 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 business 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.
• Employers’ Liability Insurance is a legal requirement for most UK employers. EL 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. EL typically covers the associated legal and compensation costs, and other damages of such events, but it can also cover accidental injury or damage caused by an employee to a third party, such as your customers. 

• Business Contents cover for shops can help to replace the contents of your business premises in the event of fire, flood, theft, and accident. Use contents insurance to pay for new fixtures and fittings, equipment, stock and samples, raw materials, and employees’ personal belongings if they’re damaged, lost, or stolen. 

• Product liability insurance (PLI) – also known as ‘product insurance’ – is designed to protect retailers from financial loss in the event that someone is harmed, or property is damaged due to the products that they supply. Important tip: In the event of an accident, your business could be held liable even if you only distributed the offending product and had nothing to do with its creation.

• Business interruption insurance covers you for lost income if your store is unable to operate due to an unexpected event. This would include incidents such as: fire and flooding at your premises, or power blackouts. Major equipment failure. Supply chain issues beyond your control.
• Stock insurance protects your important stock, helping to replace inventory that has been damaged, lost or stolen.

Other insurance that you may wish to consider:

• Equipment insurance – if you’ve invested in expensive machinery, such as freezers or chillers, this type of cover can help you if it fails for reasons beyond the warranty or service contract. It may also pay for any other property damage – such as water leaks – that the equipment fault creates
• Legal expenses cover – if a claim is made against you, this can help with legal bills such as solicitors’ fees and court costs. Some providers may also offer expert advice on a range of legal matters.
• Money cover – this can protect any cash you keep in the till or locked in a safe on the premises. It may also cover money in transit, such as when you take your takings to the bank after cashing up. 
• Personal accident cover – if you were injured in an accident and forced to close your shop, personal accident cover could compensate you for the loss of earnings.