Retail business insurance can cover selected risks linked to running a retail business. This includes property damage, public and products liability, business interruption following insured damage, money and assault, goods in transit and loss of licence. Retail businesses have a lot going on behind the counter, and there’s plenty of risk because several things can go wrong in several different areas.
As a business owner, you’ll know what it’s like to spin several plates at the same time. There’s stock to order and protect, there’s the need to ensure customers are safe, and the need to ensure deliveries run smoothly. On the good days, you’ve got the card payment machine beeping and the bell by the door is constantly ringing.
But one bad day can make things unravel. There’s always the chance of something happening by surprise. One small issue in one part of the chain can cause snags everywhere. Nobody opens a shop hoping to spend a Wednesday afternoon dealing with a smashed window and consequences. That’s where retail business insurance may be able to support. So, what can retail business insurance cover?
What Can Retail Business Insurance Cover?
Retail business insurance can cover a range of selected areas, depending on the policy. It is a bit of a mix-and-match. Not every small business owner will need the exact same cover. Firstly, it’s important to understand exactly what you need for your business. Think about the risks the business might face and work out which cover applies. Below are some of the cover sections a retail policy may include.
Property Damage
Unexpected damage to a property can be extremely costly. And that’s not even thinking about making the repairs. Property damage may make the shop unsafe for the public, forcing you to close the business. Damage to the building, contents and stock at named retail premises may be covered by this insurance.
This can include damage caused by events such as fire, burst water pipes, theft, or storms. It’s worth checking the policy terms to make sure you are covered.
Public and Products Liability
You can do all you can to make the building safe, but sometimes accidents happen for one reason or another. Retail business insurance can help with certain legal liabilities if a customer or member of the public sustains an injury. This can include claims connected to trips or damaged belongings.
You may also be able to get cover for products. This may be useful if an item your business sells causes an injury or illness after purchase.
Business Interruption
There is so much that can happen outside of your control when running a retail business. Something totally unexpected and random may interrupt trading at the premises. For example, a fire or flood may mean customers cannot safely visit the shop. This will have a significant impact on your business due to the lack of sales.
Retail business insurance may cover loss of turnover following insured damage that interrupts trading at the premises. Check the indemnity period, sums insured, and any conditions carefully.
Money and Assault
Unfortunately, there are some real party poopers around who seemingly love to target retail businesses. Theft can leave a mental scar; it is brutal. It can also damage the business financially. Retail business insurance can include theft, attempted theft or robbery of business money. Some policies may also provide defined assault benefits if an insured person is injured.
Goods in Transit
This selection is particularly useful if your business transports goods around the country. This can include stock, products being delivered to customers, or items being moved from one location to another. Cover may apply to theft, loss or damage during transport, but the exact protection will depend on the policy wording. Retailers should check vehicle rules, single-item limits, excluded goods and any conditions around unattended vehicles. Transport needs to be within Great Britain and includes loading and unloading issues.
Loss of Licence
If you need a licence to sell certain products, then retail business insurance may be able to help. It can help cover a financial loss following the suspension, withdrawal or refusal to renew an alcohol licence, where selected. It’s not completely clear-cut, though. It will depend on the reason for the licence issue and whether or not policy conditions have been met.
Now you know what retail business insurance can cover, it’s worth thinking about which ones apply to your business. You can select what you need and tailor it to your situation. If you’re still wondering what retail business insurance is and whether you need it for your business, then visit our dedicated retail insurance page for further information. Get a quote online with Insureworks today, which can help arrange the cover.
Expert Comment
“Retail insurance can involve property, liability and trading interruption risks, but cover depends on the sections selected and the schedule. Business owners should look closely at exclusions, limits, excesses, sums insured and conditions before deciding whether a policy matches their needs.”
Joanne Safo – CEO Lukango
Retail Business Insurance FAQs
What May Not Be Covered By Retail Store Insurance?
Just like all insurance policies, there are exclusions. These include communicable diseases, war, terrorism, nuclear risks, asbestos, mould, cyber risks, deliberate or dishonest acts, gradual causes, wear and tear, fraudulent claims and losses outside Great Britain. Each cover you select will have different exclusions, so it’s vital that you read the full wording before buying.
Does Retail Business Insurance Cover Stock?
Yes, retail business insurance may cover stock if property damage cover is selected and the loss is caused by an insured event.
Does Retail Business Insurance Cover Loss of Income?
Yes, business interruption cover may help with loss of income if selected. This may apply if insured damage prevents the shop from trading or reduces trading. As is often the case with insurance, it depends on the selected cover, the insured event, limits and wording.
Does Retail Business Insurance Cover Theft?
Retail business insurance may cover theft of stock, contents, money or goods in transit if the relevant sections are selected and policy conditions are met. Security requirements and exclusions can apply. It may also be able to help if money and assault are selected, depending on the specific circumstances of the case.
How do I Know What My Retail Business Insurance Covers?
You will be able to find out what is covered in your retail business insurance by checking the IPID, policy schedule and full policy wording. The policy schedule will confirm the selections, and the wording will detail all the limits, exclusions, conditions and excesses.