A guide to buying insurance

Owning and running a store can be hard enough work on its own, often seven days a week, without the added concern of what could happen to your livelihood should the worst happen. Fortunately, there are many different store insurance policies available today that cover all the risks a retailer might face running a business from a location that sells goods and services to the public.

A store insurance policy will contain a variety of coverages, packaged for the convenience of the merchant.

These include building and store contents coverage, commercial stock coverage, business interruption and loss of profits, money coverage and staff loyalty insurance, legal protection, window and storefront glass coverage, goods in transit, public liability , employers liability, and various options to cover shop-specific risks. Store insurance packages will include most of the above risks as standard, while some insurers allow the prospective policyholder to select the coverages that are appropriate for their particular type of store.

Shop Insurers use several basic rating factors to decide premiums, and zip code and annual billing are important factors.

The location of your store will largely determine the price you pay for coverage, particularly store inventory and content. A store located in a run-down development with a known propensity for theft and vandalism will command a much higher premium than one located in a modern shopping center with street security and CCTV. Annual billing is used to calculate coverage levels, such as the impact of a loss on a store’s business capacity.

Commercial buildings insurance covers the costs of rebuilding the store and the costs of replacing the store front, which is invariably made of glass. All building insurance covers permanent fixtures and fittings, such as toilets and doors. This coverage is available to both store owners and renters.

Store contents insurance covers all additional store fixtures and equipment used in the daily operation of the business. Most insurance companies will require a breakdown of store contents in sums insured for business equipment, fixtures and fittings, electrical and computer equipment, tenant improvements, refrigerated stock, and all other stock.

Stores that require protection for high-risk items on the premises will generally be required to report full values ​​for each item in stock. High-risk stocks and products are those that attract thieves and are expensive to replace. Examples of high-risk stock items are electronic equipment, cigarettes and tobacco, designer clothing, computers and digital equipment, software, computer games and consoles, medicines, pharmacy and medicines, watches and jewelry, mobile phones and radios, photographic equipment , power tools, TVs, DVD, CD and Wines and Spirits.

If your store has high-risk inventory, you can reduce the cost of your premiums by having adequate security. This includes an insurance company approved burglar and fire alarm, window grills, shutters and bars, CCTV and sprinklers. Many store insurers will only offer stock coverage if the minimum levels of security are in place for all stores, regardless of the content of the stock. Many insurers can offer large additional discounts to the premium if the store owner lives on or above the premises and is there at night.

Shops by their very nature deal with members of the public and a good insurance policy will usually include liability cover as standard. This should include public liability of up to £2,000,000 for any claim by a member of the public who may suffer loss or injury while visiting the store.

If you employ staff, all policies will provide up to £10,000,000 employer liability cover per event and, as shops sell goods and services, £2,000,000 product liability cover for any period for sure.

Other standard features of a store insurance policy are various levels of coverage for legal expenses and legal protection, employers, civil and product liability, lost profits, glass and sanitary ware, money and personal coverage Accident assault, business interruption, merchandise in transit, Loss of License, Treatment Risks and Seasonal increases in the value of the contents of the stocks.