Whilst most insurance is optional rather than mandatory, shop owners and retailers usually opt for product and public liability at the very least, as an accidental injury to a member of the public whilst visiting your premises could result in a significant cost.
In addition, if you employ staff, even if they're part time, it’s a legal requirement in the UK to hold employers liability insurance.
There are three main things to consider if you’re undecided about whether you should take out insurance for your shop or retail business
Could you afford the cost of a claim? - The cost of any claim is likely to easily exceed the cost of your insurance.
Is there a legal obligation? - If you have employees, even if they are part time or temporary, insurance is a legal requirement. You could face fines if you don’t have it in place.
Will insurance open more opportunities? - Having appropriate insurance in place could be required for partnership opportunities
The right mix of products for you will depend on your trade and the unique risks your business faces. Understanding what cover you need will give you peace of mind should a claim arise. It’ll also ensure you’re not paying for covers you don’t need.
A popular cover for most businesses, and those who come into regular contact with members of the public such as shop owners. Public liability covers you against claims from third parties for any claim resulting from an accident involving you or your premises. Whilst product liability covers you against claims from third parties, for any claim resulting from an accident or injury with the items you sell.
Third parties could be a client or a member of the public, essentially anyone who isn’t a member of staff.
Accidents could be as innocuous as a member of the public slipping on a freshly mopped shop floor resulting in an injury, or damage to clients property as a result of a fault with a product you’ve sold them.
Employers' liability is a mandatory cover in the UK if your business has employees. Failure to have this cover, or to be able to produce a certificate to prove you have it could result in fines of up to £2,500 for every day you don’t have it.
Whether your employees are full-time, part-time, apprentices or even temporary you’ll need to get covered - although there are some exceptions, if you employ family members for example.
You’ll usually need to register and update your cover with each new member of staff, if you are likely to have high turnover of workforce our cover includes 50 days’ cover for temporary employees, who do not need to be registered with us, each year.
A no brainer for shop owners, this cover will take care of your retail space and the items you sell there if they are damaged, lost or stolen.
This includes cover for theft or damage to your contents, portable equipment cover for items you take outside of the premises and accidental damage to your buildings including for floods.
If you don’t have an in-house legal team this cover provides the advice and counselling services necessary to cover commercial legal affairs, such as tax enquiries or legal disputes.
Online retail cover - If you run an online shop alongside your physical retail space, our shop insurance includes additional e-commerce insurance for retailers who sell items online.
Shop front - If your shop front is damaged shop front will cover the costs of the damage, including breakages and damage to the glass.
Business interruption - If you lose income due to physical damage to your property, such as a flood, this cover can cover lost earnings as a result of you not being able to trade.
Getting insurance cover for your shop needn’t be complicated and can be done quickly online. To complete a quote for insurance you’ll need the following information:
Business type - are you a sole trader, limited company or partnership?
What your business does - what’s your trade, what type of work do you carry out?
Your business turnover - how much money do you expect to receive for your work?
Where your business operates - where in the UK are your premises, and do you serve other territories too?
Details of your employees - if you have any
Whether you have cover in place currently - and if you do, your renewal date if you know it so you can switch
Depending on what your trade, there may be other information required to get the right cover for your needs.
Insurance needn’t be expensive. The price you pay will depend on the level of cover and level of risk your business faces.
Products or services that could more easily cause harm to the public, or involve high value items of stock or equipment present more risk. The greater the potential risk, the higher the chance of a bigger payout in the event of a claim, which usually increases the cost of your insurance.
If you already have insurance in place, switching is simple. You'll just need to let your current insurer know that you're leaving them and then start a policy with us.
When building your quote with us, you can set a day that you want your policy to start, so you're never without business insurance.
Yes, we also cover online retailers. There's no need to select multiple business activities when building your quote – when selecting your shop type you'll also be covered to sell things online. Some restrictions apply if your shop sells items in the US and Canada.
Public liability insurance, provides cover for legal and compensation costs in relation to a claim made against a business due to injury or property damage inflicted on a non-employee
Professional indemnity insurance, or PI insurance, is designed to protect your businesses if a client loses money because of a mistake you made in your professional services.
Travel insurance is a form of cover to protect you while you are away on holiday or travelling abroad. it can also provide monetary compensation for other loss or inconveniences you may suffer when your travels don't go to plan.