One of the most overlooked tasks when opening a retail shop is transferring the risks that come with being in business. Many new shop owners understand the need for Public Liability or Property Coverage but rarely do they consider all of the risks that are present while being open to the public.
While many insurers offer a retail shop insurance, you have other risks that are substantial and these need to be transferred to a highly rated insurance company.
Public Liability Insurance
Public liability exists whenever you or your business interacts with a third party such as customers or vendors. This cover is designed to pay out if you or your business are found liable for injuries or property damage as a result of your business activities. This cover also pays defence costs which are one of the most likely expenses your business will incur in the event of a claim.
Business Property Insurance
Property cover pays for repair or replacement of your business property. The cover pays for damages to the building (if owned) and contents in your shop, and can be customized using optional covers to include legal expenses, loss of rents, tenant improvements, terrorism, loss of income due to business interuption, and goods in transit.
One of the most valuable covers for shop owners dealing in high-end goods is that for floor stock and inventory. The inventory cover can be assigned a different limit than that of contents since the value is quite likely to be much higher. In fact, this cover increases by 20% (without charge) during holidays when shop owners are likely to have a significant increase in inventory.
Also available under the property section is cover for glass. This cover provides protection for windows, doors, display cases, and other glass property in the store.
Product Liability Insurance
Similar to Public Liability, this pays out if your shop is found liable for third party damages for a product that you supply, install, maintain, or manufacture. It's important to understand the cover is not for the product (like a warranty) but for the damages they may cause.
Employee's Compensation Insurance
Typically required by law if you have one or more employees, Employer's Liability covers any employees who may suffer and injury or illness while under your employ. In many cases, you may be required to provide this cover even if a worker is providing volunteer services.
It's important to understand that every business faces certain everyday risks while interacting with third parties. Knowing this, it is important for the business owner to consider their individual exposures and the best way to transfer those risks to an insurance company at an affordable rate. Your first step, before you open, should be to contact a Trusted Union insurance advisor to have a discussion about your individual business needs.