Shop insurance provides cover for losses that might arise due to unexpected events, such as theft, fire or natural disasters. A single policy can cover all the risks associated with a shop or showroom. Shopkeeper’s insurance includes cover for the shop building and its contents, cash in-transit or in the counter, public liability, employer’s liability and business interruption.
Your employees or customers can claim for the damages suffered within your premises. Many insurers offer an array of optional extras depending on the nature of the business. You could be operating a hairdresser’s salon or a coffee shop but protection is essential for the smooth functioning of the business. Many types of insurance policies provide cover for third party claims and damage to your property.
Shop Insurance: Types of Coverage
Stock Protection: Insurers generally allow shopkeepers or owners to choose the quantity of stock to cover for protection against theft, fire and unexpected circumstances.
Business Interruption Insurance: This cover is a standard part of shop insurance, which provides coverage for loss of business income and additional costs after your insured property is damaged. For example, if your shop faces a major fire and your business cannot operate for some time due to repairs, business interruption insurance will compensate for the lost earnings until the business is back on its feet.
Public Liability Insurance: Public liability insurance covers the damages or legal costs of defending against any legal claim that arises from any person other than an employee. If a person gets injured or falls ill due to negligence or something that the business is responsible for, s/he might sue you for compensation.
Employer's liability insurance: Employer's liability insurance is a legal liability for any business firm to compensate for damages sustained by employees on your premises. If an employee gets injured or falls ill while working, s/he can claim for the injuries in a court. The employer’s liability can help by paying the legal costs, while also providing cover for compensation up to the purchased limit.
What Shop Insurance Does Not Cover?
Shopkeeper’s insurance does not cover any loss to vehicles used for business, securities, bullion, documents, bonds, etc. Also, the insurer will not pay damages occurred due to conflict or atmospheric conditions.