Who Can Benefit From Shop Insurance?
Any business that owns a shop or in retail business qualifies for shop insurance. However, online shop that keeps their inventory at home do not qualify for the policy. On the other hand, if you manufacture goods in the same premises that doubles as a shop, then you will need a commercial combined policy. Businesses that sell food and other perishable products qualify for shop insurance if the goods are not manufactured on site.
The Advantages of Having Shop Insurance Policy
Businesses face numerous risks, whether they are opened or closed. Some risks are minor while others are serious enough to prevent a business from operating. For example, storms and floods have become common. Businesses also face the risk of fire from electric malfunction or lightening. A shop can also lose money and stock through theft. If these calamities strike your business when you are insured, you will not have to find the finances to restock and repair the premises.
If you have employees, injury claim is one of the most common insurance claims retail businesses face. Legal claim for compensation due to injury can stretch your finances because of the costs associated with court proceedings and settlements. Shop insurance protects you from such eventualities by allowing the insurer and its legal team to defend the claim on your behalf.
The Things Covered By a Standard Shop Insurance Policy
Shop policies cover the rebuilding cost of your business in case of damage. The amount should include the amount spent on removing the debris, clearing the site, architect fees, planning and building to restore the shop. It is worth noting that the selling price of the building is not covered.
Concerning content, the sum insured should reflect the accurate prices on the following:
• Business equipment
• Electronics and computer equipment
• Fixtures and fittings
• Electronic scales
• Tenants improvement costs
• The stock covered include goods the shop holds on behalf of customers and other goods declared as high-risk items.
• Refrigerated goods and all other stock
Things That Are Not Covered By the Shop Insurance Policy
Manual work-The policy does not cover manual work, for example, technicians who work on a customer’s premise to assist with fitting the items purchased from your shop. If your business relies on technicians to assist the customer fix the items they have purchased from you, then you will need an extra cover.
Accidental damage-Standard shop policy does not cover accidental damage. You will have to take accidental damage cover to protect your business from damages caused by calamities outside the insurance policy.