Shop Insurance

Who needs shop insurance?

Shop insurance is designed for anyone who operates a retail or service-based business from a commercial property, market stall, or even an online platform. 

While most components of shop insurance are optional but recommended, certain covers are a legal requirement depending on your business structure. 

1. Mandatory Requirements

• Employers' Liability (EL): You are legally required to have this if you employ anyone, including part-time, temporary, or casual staff. Failure to have EL can result in fines of up to £2,500 per day.
• Commercial Motor Insurance: Legally required if your business uses any motor vehicles on public roads. 

2. Who Should Consider Shop Insurance?

You generally need a shop insurance package if your business involves: 

• Customer Footfall: If members of the public visit your premises (e.g., bakeries, florists, hair salons, or corner shops), you need Public Liability Insurance to cover potential injuries or property damage.
• Valuable Stock: If you hold inventory on-site, in storage, or in transit, Stock Insurance protects you against theft, fire, or flood damage.
• Physical Premises: If you own the building, you need Buildings Insurance; if you rent, you may still need Contents Insurance for your fixtures, fittings, and equipment.
• Product Sales: If you sell goods (including food), Product Liability Insurance covers claims if a product causes injury or illness once it has left your shop.
• Advice or Services: If you provide expertise (e.g., an optician or consultant), Professional Indemnity Insurance protects against claims of negligence. 

3. Business Types Commonly Covered

• Retailers: Clothing boutiques, newsagents, florists, and grocery stores.
• Service Providers: Hairdressers, barbers, nail salons, and pet groomers.
• Food & Drink: Takeaways, cafes, bakeries, and off-licences.
• Online Sellers: Even without a physical storefront, online retailers often need cover for stock, cyber threats, and product liability.

What other insurance do I need?

There might be other parts of your business that you need cover for.

Commercial property insurance pays to repair the damage if something happens to your shop. Like a flood, a fire, or someone breaking a window.

Business interruption insurance protects you when an unforeseen catastrophe, such as a burst water main or a fire in a neighbouring apartment, prevents you from conducting business as usual. It covers your lost income while you recover.

When the worst happens, you have to be worried about all of the priced products in your shop. Business contents insurance pays to repair or replace these items. It additionally covers fixtures and fittings, such as carpeting and lighting. Including your employees' personal belongings. So if a flood occurs or you are burgled, you will not be out of pocket.