What does a retail insurance policy cover?

 If you are the proud owner of your own store – whether that be a local newsagent, a high street fashion chain or a cutesy florist – it is important to invest in a retail insurance policy. You have worked hard for everything that you achieved and, although it may seem unlikely, it is a good idea to prepare for the worst and protect your business against any potential risks.

Retail business insurance is suitable for a range of different retail stores. Many policies are available and, although they can be tailored to meet the needs of your business, most will cover a number of key areas. Here we take a look at each of these areas in detail, outlining exactly what a shop insurance policy will cover and how it could help your business to survive a difficult time.

Shop owner with retail insurance

Five areas covered by a retail insurance policy

1. Liability

Liability is something that all shop owners should consider and when it comes to retail insurance, it is typically broken down into 3 categories – including public, employer, and product liability.

The public liability aspect of your policy, essentially, protects against claims that are made by members of the public – perhaps due to injury or damage that has been caused by your business. For example, if a customer accidentally slipped on a puddle or spillage inside your shop, your retail insurance policy would cover both the legal expenses and any compensation that is granted.

Similarly, employer’s liability protects against employee claims and product liability covers both injury and damage that has been caused by your products or services.

2. Premises

Retail shop insurance typically covers any structural damage to your business premises. This damage can be caused by a wide range of factors, including flood, fire, theft and vandalism or just a simple everyday accident. The policy will cover the cost of any repairs, ensuring that your premises are restored to their original condition and allowing business to resume as quickly as possible.




3. Stock and contents

As a retail store, you are likely to have a large quantity of stock and equipment (e.g. tills, computers) – and if any of this was to suffer damage or loss, the consequences could be devastating. Most small businesses would struggle to get back on their feet; however, thanks to the ‘contents’ aspect of your retail shop insurance, all items could be quickly replaced, and your finances would be unaffected.

4. Business interruption

If the unexpected were to happen, such as a fire or flood on your premises, day-to-day business and sales would be interrupted. Trade would have to cease until the damage had been repaired and this would inevitably lead to a loss of income. In such circumstances, your retail insurance policy would cover the loss of income and could ultimately be the difference between your survival or closure.

Shop owner with retail insurance policy

5. Legal protection

Owning a business comes hand-in-hand with much responsibility and, even if you are particularly cautious, legal action may be brought against you for one reason or another. For example, you may need to defend yourself at an employment tribunal or during an HMRC tax investigation. You may even wish to take legal action yourself, perhaps against your main competitor or supplier. 

Legal fees certainly don’t come cheap; however, they are covered by most retail insurance products. Your policy will cover the fees, giving you the legal protection that you need, without you having to worry about the cost.

Retail Insurance at Rigby Financial

If you would like to protect your retail business against any of the scenarios outlined above, retail business insurance is a worthwhile investment. The policies currently available, here at Rigby Financial, are perfect for both shops and also offices, surgeries, pubs, restaurants and hotels.

Whatever the nature of your business and whatever level of cover that you require, our team of experts will scour the market and find the perfect retail insurance product for you. Get in touch using our online contact form or call us today on 01744 886077 to find out more.