Shop InsuranceHow much Insurance and the cost? You get what you pay for, so don't leap in with both feet and opt for the cheapest. It pays to thoroughly research your market before you buy. You'll find that shop insurance policies vary widely in terms of - the premium you pay
- the level of cover you get
- the excess (how much you pay if you have to make a claim)
- the service
The following is a guide to the level of cover to consider taking out: Buildings, contents and vehicles - insure for their current rebuild or replacement cost. Public liability - if you have 20+ employees, £5 million, not the £2m legal minimum Top Tips- Some insurers won't pay out if you don't uncover theft by an employee within 7 days, so make sure you have robust accounting systems in place
- If you're paying for frozen food cover, check the small print - some insurers won't pay out if refrigeration cabinets are over a certain age. AXA UK Ltd will reduce its pay out by 20% if cabinets are over 10 years old
- Stock kept in basements or cellars is vulnerable to damp. Some insurers demand that it must be kept on racks or shelves at least 30cm above floor level
- Insurers demand a certain level of security as a condition of cover, often within a specific time period of the cover starting (eg 30 days). If it's not implemented and there's a break-in, say, you won't be covered
- Some insurers won't cover theft by an employee who is legitimately on the premises. Check the small print. This type of insurance is sometimes called Fidelity Guarantee
- Store stock and equipment off the ground - raising it by just a few inches could save thousands of pounds in the event of a flood
- Read the small print so you're aware of any pre-set conditions and exclusions. For example some cover is dependent on you having a specific type of alarm fitted or securing your equipment in a particular way
- The less secure the location where you keep business money (eg at your home or an employee's home), the lower the amount you can expect your insurer to pay out in the event of an incident
Employers' liability cover - £5m is the legal minimum. Some insurers, eg Brighter Business, offer twice that Products liability - £5million Business interruption - work out how much profit you'd lose if couldn't use your premises for a year, plus extra expenses (eg alternative premises) Deterioration of stock - work out the value of stock that could be written off because of a temperature glitch Goods in transit - the maximum value of goods you transport in any one shipment Specified items - the value of equipment you need to cover away from your shop premises (eg for exhibitions or meetings) More Than Business (an online shop insurance provider reviewed on this site) helpfully offers a quote comparison to give you an idea of cost. Cost ExamplesHere are a few examples (prices current at May 2008): Type of business Hair salon- Trading since 2002
- Location WV15 Bridgnorth, Shropshire
- Stock £5,000
- Contents £20,000
- Buildings N/A
- Tenants improvements £20,000
- Rent cover £10,000 per year (covered up to 3 years)
- Treatment risk cover Included
- Legal expenses cover Based on £50k wages
- MORE TH>N BUSINESS Premium £401.15*
- Monthly instalment £33.43
Type of Business Butchers- Trading Since 2000
- Location B26 3SR (Birmingham)
- Stock £5000
- Contents £25,000
- Buildings N/A
- Tenants Improvements N/A
- Rent Cover N/A
- Stock in Fridge/Freezer £2000 (per fridge/freezer)
- More Th>n Business Web Premium £531.90*
- Monthly Instalment £44.32
Trade Florist- Trading since 2000
- Postcode B75, Sutton Coldfield
- Stock £5,000
- Contents £10,000
- Buildings £115,000
- MORE TH>N BUSINESS Premium £344.85*
- Monthly instalment £28.74
Trade Shoe retailer- Trading since 1992
- Postcode IP24, Thetford
- Stock £15,000
- Contents £7,000
- Rent £12,000 over 12 months
- Claims 01/02/03, 1 malicious damage, £1,000 paid
- Legal expenses cover Based on £20k wages
- MORE THAN BUSINESS Premium £430.46*
- Monthly instalment £35.87
*including Insurance Premium Tax How to get Cheap Shop Insurance- Make your business premises as safe and healthy as possible to reduce the number of claims by customers and employees
- Make premises as secure as possible (BS standard locks, intruder alarms, CCTV etc) to deter break-ins
- If you can, locate your premises in an area that's free of flooding and subsidence and with a low crime rate
- Comply with the requirements of the Health and Safety At Work Act
- Complete a thorough risk assessment of the workplace
- Keep business money in a secured locked safe
- Buy an insurance package where you can pay the annual premium monthly, interest free
- Don't operate your business outside Great Britain, Channel Islands or Isle of Man
- Don't supply products directly or indirectly to the USA or Canada
- Don't leave premises unoccupied for long periods
- Don't store stock in basements where it's liable to dampness
- Make sure premises and mechanical equipment are well maintained
- Choose premises that are self contained with their own lockable entrance door
- Ensure all exit doors meet minimum security requirements eg a mortise deadlock with 5 or more levers and/or conform to BS3621
Health and Safety at Work etc Act 1974All owners of retail premises must comply with the Health and Safety at Work Act. You face a hefty fine or even imprisonment if you don't. You'll also be wide open to claims from staff and the general public. Overseen by the Health and Safety Executive (HSE), the Health and Safety at Work etc Act aims to create a safe working environment in all types of commercial premises. Visit the HSE website for useful information and advice on all matters relating to health and safety shops. You can also phone the HSE INFOLINE on 08701 545500 (fax: 02920 859260). Another good source of help and advice is your Local Authority Environmental Health Department.
| 
know-insurance