Shop insurance

Who needs shop insurance?

If you run your business from a commercial property and rely on customer footfall, then shop insurance is for you.

You might be a baker, a florist, an optician, a tailor, or run a small, local café. Whatever your shop does, if you have customers visiting and buying things, then you need shop insurance.

The kind of shop insurance you’ll need will depend on what your shop does. And if you have any staff. Or you rely on stock that’s stored on-site or nearby.

People are accident prone. If a customer injures themselves or damages their property in your shop and it’s your fault, you’d be in a tough situation without public liability insurance.

You also have to worry about your staff. If they suffer a work-related injury or illness, you’d be under a lot of stress if you didn’t have employers’ liability insurance.

When it comes to your stock, a flood or a fire could wipe out your ability to trade. Without stock insurance, you’d risk going out of business.

Does a shop need public liability insurance?

If your shop receives customers or visitors, then you need public liability insurance. Even if you don’t have high footfall.

Public liability insurance covers you if a member of the public is injured when they’re visiting your shop and it’s your fault.

It also covers you if their property gets damaged while they’re with you and you’re to blame.

Let’s say a customer slips on a wet floor in your shop. They hurt their back and can’t work for a few months while they recuperate. They decide to sue you for compensation.

Without public liability insurance in place, you’d have to pay for your own solicitor as well as picking up the tab for any compensation you owe.

Personal injury claims can run to many thousands of pounds, so even one situation like this could put a shop out of business.

As far as public liability insurance is concerned, shop insurance covers you if a member of the public is hurt while they’re visiting your shop and you’re to blame. You’ll also be covered if their property is damaged and it’s your fault. 

Employers’ liability insurance covers you if an employee is injured or becomes ill while working for you. You need this by law if you have any employees. Even if they’re part-time. If you’re held liable, shop insurance will pay for your legal fees and any compensation awarded to your employee. Shop insurance isn’t just for employees and customers, though. 

You can also add stock insurance, which covers you if your stock is damaged or stolen. It even covers you if it’s not stored on-site. Or it’s in-transit.

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 is there for when an unexpected event, like a burst water main or a fire at a neighboring unit, means you can’t trade as normal. It pays for your lost income while you get back up and running.

When the worst happens, you also need to worry about all the valuable items inside your shop. Business contents insurance pays to repair or replace these. It also covers fixtures and fittings, like carpets and lights. And even the personal belongings of your employees. So if a flood strikes or you’re burgled, you won’t be out of pocket.