Retail Shop Insurance

Britain is a nation of shopkeepers, Napoleon once said at the end of the 18th century. With 14,600 or so new independent shops still opening every year, it seems as though the same is still true today.

The problem is that almost as many – 14,400 – close down each year. Competition is obviously fierce and one of the reasons for that is the cost of essential overheads, such as retail shop insurance.

What is retail shop insurance?

What is retail shop insurance?

Retail shop insurance is one of the most essential overheads because it provides the first line of defence against theft, loss or damage to the assets of the small business, but also shelters it from a number of liabilities which threaten the financial viability of the enterprise.

How does it do that? It may help to examine some of these risks and perils that retail shop insurance covers.

What does it typically cover?

What does it typically cover?

Here are some of the elements you might find in the typical package providing insurance cover for a shop:

The shop itself

  • if you own the premises, you are almost certain to want protection against such potentially serious risks to the structure and fabric of the building as fire, escape of water, storm damage, flooding, vandalism and theft;
  • if you are leasing your shop, the landlord is typically responsible for such building insurance – but you need to make sure exactly what is included in that cover, since you may still be responsible for breakage to the shop window and damage to any signs you erect;

Your stock

  • as far as the business is concerned, of course, an essential item is the stock you carry – and this needs to be insured against the risk of theft, loss or damage, with cover that is specially tailored to the nature of whatever stock you carry;
  • similarly, the shelving, fixtures, fittings and equipment within the shop also needs the protection of contents insurance;

Public liability insurance

  • every bit as real as the prospect of loss or damage to such physical assets is the risk of claims made on the strength of your liabilities – especially your public liability;
  • if a customer, supplier, neighbour or member of the public is injured or has their property damaged, you may be held liable as the shop owner and sued for substantial compensation – if, for example, a poorly-fitted shop window pane shatters and hits a passerby;

Employers’ liability insurance

  • if you employ someone else to help run your shop, the law requires – with a few exceptions for close family members – that you hold a minimum of £5 million employers’ liability insurance;
  • this is to ensure that you meet claims made by an employee who is injured at work or who contracts a medical condition because of the work they do for you;

Product liability insurance

  • despite any manufacturer’s warranty or guarantee, you are still responsible for the safety and fitness for use of the products you sell in your shop;
  • this element of insurance cover helps indemnify you from claims that the products you have sold are in some way faulty.

Who is retail shop insurance suitable for?

Who is retail shop insurance suitable for?

The insurance is suitable for anyone who own any kind of shop.

There are literally hundreds of different types of shop, of course, and here at Specialist4Business you may give us a call or complete a simple online form to receive a quote that is specially tailored to meet the needs of your particular establishment.



Retail shop insurance is an essential overhead – and one that may prevent the business you own from joining the 14,000 or so other shops which have to close each year.

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