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The Vital Importance Of Shop Insurance In Business

Sep 5, 2008
For those who are opening a retail space such as a shop, restaurant or bar then there are certain insurance needs that you will need to fulfil. This is due to the fact that retail premises see large numbers of the public entering them on a regular basis. This is somewhat of a problem for those who own the premises as whenever the public are present there is the chance of lawsuits and legal action should a fall, illness or injury occur. Understandably having some form of shop insurance is a vital concern for those opening shops.

Shop, restaurant and bar owners clearly want members of the public to come through the doors, even if these risks are present. To make money there is no choice but to welcome people into the premises, so constantly worrying about lawsuits is clearly not an option. In shops the chances of falls and trips and hence injury are high. With stock filling going on there are normally boxes and other items in aisles while spillages can cause a fall extremely easily. Sadly for shop owners the falls and trips are not even always accidental, a whole 'profession' has built up with people who choose to enter shops and fall purposely, subsequently making money from the ensuing lawsuit. These scammers make insurance a very real necessity for shop owners.

It is not only members of the public that the business owner needs cater for. Employees are just as likely to trip or fall while those working in restaurants will often have to handle hot items and bar staff dangerous chemicals such as line cleaner. Once again this makes insurance a vital concern, protecting the business from grievance payouts and liability issues. Additionally because retail premises often hold large amounts of cash on the premises, the chances for the theft of this cash are higher. This could be a robbery or even staff fraud; either way a policy inclusion covering the business from this circumstance is essential.

The law also demands that retail premises have certain insurance policies. Employer's liability insurance is needed in all industry sectors as it ensures that injured employers will be able to gain a suitable payout should an accident occur. Understandably the law is normally on the side of the employee with responsibility and hence liability squarely on the shoulders of employers. Naturally this policy inclusion is legally defined, but it makes sense to have it anyway, in the lawsuit culture that has developed over the last twenty years, compensation costs can be vast. Protecting yourself from these costs is purely sensible business practice.

As well as protecting a retail premises from employee grievances it is often advisable to have some form of public liability insurance. This is not legally required but makes good business sense as for small shops or restaurants one large compensation claim is enough to send a business to rack and ruin. This policy inclusion will normally cover all compensation costs and legal fees should a claim be put in by a member of the public. Additionally, buildings and contents insurance should be sought. With shops holding large amounts of stock, sometimes into the thousands of pounds range it makes sense to protect this stock from theft or infestation.

It is hoped that this information has given the shop, restaurant and bar owner a greater understanding of the types of insurance cover they will need. In our culture of suit and countersuit that has arisen it is imperative to protect yourself from genuine as well as bogus claims. This article only gives a small indication of this fundamental need but hopes to be a good starting point for business owners.
About the Author
Business expert Thomas Pretty looks into the necessity for shop insurance in the retail industry for protection against employee and public claims.
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