Retail shop insurance is a package policy designed for the specific risks of running a retail business. Core covers typically include buildings (if you own the premises), contents and stock, public.
Retail shop insurance is a package policy designed for the specific risks of running a retail business. Core covers typically include buildings (if you own the premises), contents and stock, public liability, employers liability (if you have staff), business interruption, and money cover. Additional covers such as goods in transit, legal expenses, and loss of licence can be added depending on your business type. The right policy protects your stock, your premises, your staff, and your customers.
One of the most important decisions when arranging retail shop insurance is setting the correct sum insured for your stock. This should reflect the maximum value of stock you hold at any one time, including seasonal peaks such as Christmas or sale periods. Underinsuring your stock is a common and costly mistake — if you suffer a total loss and your stock is underinsured, the insurer may apply average and pay only a proportion of your claim. Focus Insurance will help you establish an accurate stock valuation.
Business interruption insurance is particularly important for retailers, as even a short period of closure can result in significant lost income. Cover compensates for the loss of gross profit and any increased costs of working during the period you cannot trade normally. The indemnity period — the length of time the policy pays out — should be long enough to cover the time needed to repair or rebuild your premises and restock. Most retailers choose an indemnity period of 12 to 24 months.
A small retail shop typically needs buildings insurance (if you own the premises), contents and stock cover, public liability insurance, employers liability (if you have staff), and business interruption cover. Depending on your business, you may also need goods in transit, money cover, and legal expenses insurance.
Public liability insurance is not a legal requirement for shops, but it is strongly recommended. If a customer is injured in your shop or their property is damaged, you could face a significant claim. Many landlords also require tenants to hold public liability insurance as a condition of their lease.
Call us on 01733 263311 or request a call-back. Our brokers will discuss your shop type, turnover, stock values, and cover requirements before approaching the market on your behalf.
Cover is subject to underwriting, insurer terms and acceptance. Focus Insurance Services is authorised and regulated by the Financial Conduct Authority (FRN 717691).