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Different Types Of Shop Insurance

Aug 29, 2008
If you are opening a shop, restaurant or even a pub there are specialist insurance concerns for retail premises and operations. This is because in any one of these businesses you will have a large amount of public contact and members of the public on the premises. Naturally having members of the public regularly on a premises opens up a far greater risk of lawsuits and suing. This is why shop insurance is a vital concern before beginning any operations.

Obviously the entire point of owning a shop, restaurant or pub is to get members of the public into the premises. Hence constantly worrying about the lawsuits that could occur is not a great business position; ideally you want to be able to welcome the public without any legal concerns. The chances for accidents and injury in a shop environment are great, as people pass through aisles there are always going to be boxes and spillages in the way which can cause people to trip and fall. In some cases, shop premises are targeted by 'scammers' who purposely trip in the hope of gaining a legal payout. Subsequently the importance of insurance is massive.

As well as customers there are the employee concerns to worry about. Naturally retail and catering staff often have to lift and handle heavy or hot items. Understandably the risk of injury is therefore greater than in other industries and hence insurance is vital to once again protect your business from lawsuits and employee grievances. As well as this, because of the large amount of cash kept on the premises as a shop owner, you are more susceptible to theft and fraud from employees, once again insurance can help in protecting a business from these occurrences. Hopefully the following information will outline the major types of insurance obtained for shop, restaurant and bar operations.

Firstly the legally defined insurance requirement is employer's liability insurance. Since the sixties this has been required and as part of the legislation puts the responsibility of employee health and safety upon the employer. As the onus is on the employer, they must have insurance to cover themselves from any injuries on work premises or illnesses caused by operations. As compensation can be extremely costly, having this included in your policy can help your shop or restaurant protect its financial base.

Although not compulsory, public liability insurance is also advisable as once again it will protect a shop or restaurant from lawsuits. This time the lawsuits will be from members of the public and as well as covering the costs of compensation, this policy inclusion should also cover all of the legal fees incurred during the court process.

Buildings insurance for a shop or restaurant is just as important as it is for residential properties. This type of cover will protect from vandalism, break-ins and instances such as fire; especially important in a restaurant.

Stock protection is an ultimately important policy inclusion in the retail sector. As stock always represents a major investment within a shop, covering this stock from damage or theft is strongly advisable. With some premises containing thousands of pounds worth of stock, you need to ask yourself if your business could really bounce back if it lost it all.

Hopefully this information has given an idea of some of the most important policy inclusions in insurance polices. Running a shop, bar or restaurant is a specialist sector and naturally has its own unique protection needs, with a detailed and logical approach you should be able to protect your business from all angles.
About the Author
Business expert Thomas Pretty looks into different types of shop insurance and why it is vital in the retail sector.
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