What insurance does a retail shop legally need?

The only insurance that is a legal requirement for most retail shops is employers liability insurance, if you employ any staff. All other covers — including public liability, buildings, contents, and business interruption — are not legally required but are strongly advisable. Many commercial landlords require tenants to hold public liability insurance as a condition of the lease.

What level of public liability cover does a shop need?

Most shop policies provide £1 million, £2 million, or £5 million of public liability cover. The appropriate level depends on the size of your business, the volume of customers, and the nature of your products. A specialist broker can advise on the right level of cover for your circumstances.

Does shop insurance cover theft by customers?

Shoplifting (theft by customers) is covered under most shop insurance policies, subject to a policy excess. Some policies require evidence of CCTV or other security measures as a condition of cover. You should check the specific terms of your policy.

What is business interruption insurance and do I need it?

Business interruption insurance covers your loss of income if your shop has to close temporarily following an insured event such as a fire, flood, or break-in. For a retail business that depends on daily footfall, even a short closure can result in significant lost revenue. Business interruption cover is strongly advisable for most retail shops.

Can I get shop insurance if my premises are listed or in a conservation area?

Yes — specialist insurers can provide cover for shops in listed buildings or conservation areas. The premium may be higher, reflecting the higher cost of reinstatement using traditional materials. A specialist broker can help you find cover that meets the specific requirements of your premises.

Shop Insurance Checklist for UK Retailers

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