Shop Insurance

Why do I need Shop Insurance?

Flooding, burglary, robbery, fraud, fire and vandalism are just some of the risks facing retail businesses today.

Sadly, too, we now live in a society which is becoming ever more litigious with increasing numbers of people - customers and employees - taking out legal action against shop owners.

A good shop insurance package together with sound health & safety and employment and personnel practices will protect your company from financial hardship, if you need to defend yourself in court.

Often the things that go wrong are completely outwith your control - a flash flood or arson attack at your premises, say, or a serious break-in.

Any of the following could happen to you:

• A product you sell or a service you supply could result in a customer's injury, illness or even death
• You or one of your employees is physically attacked while delivering the day's takings to the bank
• Your delivery van is stolen
• A member of staff is seriously assaulted by a customer
• Your premises are flooded and all of your stock is destroyed
• Your shop windows are smashed and you lose business until they're fixed
• Your shop is burned to the ground
• Your shop gets burgled and you lose thousands of pounds worth of contents and fittings
• There's a power cut and your refrigerated stock is ruined
• Your computer equipment with all your customers' records gets damaged or stolen
• Public utility works (roads, gas, electricity) causes in a major downturn in trade
• There's a fire at your supplier's warehouse and they can't deliver any stock. You can't trade until you find a new supplier or they can supply you again

These are just a few examples of what could go wrong. That's why you need a good comprehensive shop insurance package to cover as many eventualities as possible.

Your insurer can take on the task of negotiating with third parties on your behalf, while you can fully concentrate on getting the business up and running again.

Shop safety measures

A comprehensive retail insurance policy will help recover some of the cost of burglary, robbery, fraud, flood, fire and vandalism should any of these threats become reality, but it makes sense to reduce the likelihood of these happening.

• Like your business plan, shop security should be reviewed regularly - at least once a year. Weigh up the potential risks to you, staff and customers as well as the building and stock
• Here are some basic security measures you should consider implementing if you haven't already done so
• Leave some lighting on inside the premises at night and make sure entry and exits are well lit
• Don't allow unauthorised access by the public to any private area - put up No Entry signs
• Protect the roof area against intruders and make sure skylights are secure
• If necessary erect bollards to reduce the risk of vehicle ram raid
• Replace or reinforce external doors and windows that could be easily broken into. Fit with deadlocks and keep locked when not in use
• Identify business property with ultra violet security marker pens and keep a record of make, model and serial numbers of mobile phones, computers, printers, photocopiers, etc
• If you sell high value items, eg, jewellery or antiques, take photos for identification purposes
• Locate safes in a secure area with restricted access, locked when not in use, and have a drop-chute facility so staff can deposit cash without opening it
• Vary times of visits to deposit cash in the bank
• Change computer passwords regularly
• Set up formal cash handling procedures and restrict the number of staff who carry out this task
• Don't count cash in public and limit the amount of money held in the cash drawer
• Keep a key register and store keys securely
• Install an intruder alarm system and CCTV. Keep tapes for at least a week
• Install a fire alarm and drill staff in the emergency evacuation plan
• Don't buy or rent premises with a cashline machine outside the building

Top Tips

• Don't lie about your claims history. Insurers pass information to the Claims and Underwriting Exchange Register, who check all the information to stop fraudulent claims