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 could be a baker, florist, optometrist, tailor, or even a modest, neighbourhood café. Whatever your shop does, if you have clients that come in and buy items, you need shop insurance.

The type of shop insurance required will be determined by the nature of your business. And if you have any employees. Or you rely on goods that is kept 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 goods, a flood or fire could destroy your ability to trade. Without stock insurance, you risk going out of business.

Does a shop need public liability insurance?

If your shop receives clients or visitors, you must carry public liability insurance. Even if you do not have a high footfall.

Public liability insurance protects you if a member of the public is injured while visiting your shop and it is your fault.

It also protects you in case their property is damaged while they are with you and you are to blame.

Assume a customer slips on a wet floor in your shop. They damaged their back and will be unable to work for several months while they recover. They decide to sue you for compensation.

Without public liability insurance, you would be responsible for paying your own counsel as well as any compensation owed.

Personal injury lawsuits can cost thousands of pounds, so even one incident like this could force a shop out of business.

In terms of public liability insurance, shop insurance protects you if a member of the public is injured while visiting your shop and you are at fault. You will also be protected if you cause damage to their property. 

Employers' liability insurance protects you in case an employee is harmed or falls ill while working for you. If you have employees, this is required by law. Even if they work part-time. If you are found accountable, shop insurance will cover your legal bills and any compensation granted to your employee. Shop insurance is not limited to staff and customers.

You can also get stock insurance, which will protect you if your inventory is destroyed or stolen. It even covers you if it is not kept on-site. Or it is 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 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.