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Business Insurance: Choosing a shop insurance

Reading time: 3 mins

In the event that something terrible happens to the store, which could destroy all stocks, insurers have developed specific products to give more peace of mind to their policyholders. But these insurance policies do not only cover so-called acts of God which would wipe out all the goods in the store: more precise happenings or misfortunes are also concerned. Even online trade is now concerned. So what exactly can be covered? What do shop owners need to know in order to properly evaluate the price of their insurance premiums?

 Shop insurance

What is shop insurance?

Shop insurance policies protect shop owners in case their stock is destroyed by an unfortunate event, or if the business has to be stopped after certain events.

Shop insurance, a product for all shop owners

This kind of insurance typically covers the loss of stock and equipment stored in a shop in case something happens to the shop, like a flood, fire, or burglary. Earnings lost after something has happened to the stock will usually be covered. Therefore, all shop owners, selling all kinds of goods, may be interested to buy this kind of insurance policy.

What is covered, what isn’t

Shop insurance will cover losses directly caused by a series of events, such as:

- theft;

- destruction or damage following fire, flood, and other acts of God;

- destruction or damage following police interventions;

- destruction or damage following criminal activities;

- loss of a business licence for any length of time, for example, a licence to sell alcoholic beverages;

- online shops may be covered by online retailer insurance.

However, several situations will require other insurance products to be subscribed:

- anything happening to the building itself has to be covered by a business premises insurance;

- any damage caused by the products has to be covered by a public liability insurance;

- any damage to employees has to be covered by an employers’ liability insurance.

How much does it cost?

The price of premiums for shop insurance policies can differ a great deal depending what you exactly need to ensure. Here’s what we know about these prices, and what you should know in order to properly evaluate the extent of the coverage you’ll negotiate for when looking for this kind of insurance.

Shop insurance prices

Prices of this kind of insurance vary greatly depending on a number of factors. Among other elements which will determine the price of the premium, the following are especially important:

- business nature of the policyholder: the greater the risk, the more expensive the premium;

- nature of the goods stocked: hazardous, flammable or unstable goods will carry higher insurance premiums;

- shop location: if the shop is located in a place with high levels of crime, premiums will be more expensive.

Of course, different insurance providers will ask for very different prices, and will not frequently publicly advertise these prices, so an online platform like this website is a good place to start shopping for an insurance in an efficient manner.

Evaluating the coverage you need

Before you start shopping around for a proper insurance, there are a few things you need to know in order to properly evaluate your need:

- do you need a building insurance? They’re often provided together with the shop insurance, but your landlord may already have taken care of it;

- evaluate your stock not at the recommended retail price, but at the cost price, as this will most commonly be the basis for any indemnification;

- carefully read the fine print to know if you have commercial items covered by exclusions and excesses, which will therefore require specific insurance policy add-ons.