What insurance does my shop & retail business need?

It’s important to be aware that each business is unique and therefore the risks your business faces will also be slightly different. A great business insurance policy will cover your business in case things don’t go to plan. It’s important as your business probably won’t want to be liable for things like compensation payments and legal costs.

Do I need employers liability cover?

If your shop or retail business has 1 or more employees and it isn’t just your immediate family working for you then you will need Employers Liability Insurance by law. You will need a minimum of £5 million of cover and if you are not covered you can be fined a maximum of £2,500 for every day you are uninsured.

The purpose of this cover is to ensure that if an employee injures or damages themselves by working for your business then it will be protected against claims made. For example, if an employee slips on a wet floor while serving coffee and breaks a leg.

Do I need product liability cover?

This cover is useful if you sell a product that can cause an injury or damage to a customer. An example would be if you were selling a tea pot to a customer and the handle broke causing the hot water to scold the individual, your product liability policy would pay any compensation claimed by the customer.

Do I need public liability cover?

If you serve the public through either customers coming to your premises or you visit their premises then it’s worth looking into public liability Insurance. Again this covers you if someone claims injury or damage against your business. For example, if a customer slips on a wet floor and breaks their leg they might claim against your business.

Do I need buildings insurance cover?

If you have a  shop or office premises you may wish to consider buildings insurance, especially if there is a mortgage on the space.

A good shop & retail policy will cover Buildings insurance. If however you rent the space then you’re only responsible for covering the contents.

Finally if you work from home then make sure you check your existing home insurance policy and check it covers you for working from home.

Do I need contents insurance cover?

Many new businesses rent their space, this still means your contents are at risk from theft and damage from things like fire or escape of water. A good shops & retail policy will allow you to protect your contents cover should you wish to do so.

It’s also worth noting that even if you own the office or shop space you should strongly consider taking out contents insurance.