At Highhouse Insurance we have access to many insurance markets offering shop insurance quotes and are able to offer cover for almost any type of establishment regardless of the type of goods it sells.
The policies that we arrange come on a package basis and we can quote for any of the following;
- Landlords owning shop premises that are rented to tenants and are just looking to insure the Buildings, Property Owners Liability and Loss of Rent
- Owners of shop premises that occupy them and run a business from the property
- Business owners who rent premises and are looking for a “Shop package” quote
Shop Policies for Landlords
If you are a landlord owning a commercial property that you rent to a business that uses the premises as a shop, we can insurance cover for you on a “Buildings only” basis covering a wide range of perils suitable to secure a mortgage on the property with the ability to extend to accidental damage if required. As well as cover for the fabric of the building we will include insurance for your liability as property owner and cover in respect of loss of rent receivable from your tenant in the event of say a serious fire or a flood. In order to obtain a quotation, we will need details of the building as well as information relating to what type of shop business is run from the building and whether any manufacturing is carried out from the premises.
Package Policies for Shop Proprietors
Our shop polices are arranged on a package basis, that is to say they come with a number of “core” covers to protect your business needs and a range of “optional” extras which you can pick and choose as required.
Shop Contents Insurance
Our main core cover relates to the insurance of the business contents and in any business this will usually include;
- General shop contents which you own or are responsible for which could include such items as ; fixtures & fittings, shelves, counters, display cabinets, fridge freezers and signs
- High Risk contents which could include; Computers, Tills, EPOS systems etc.
- Your stock
- Goods you have in trust (For example if you run a repair shop you may have customers goods on your premises)
Extensions to this section can typically include your “Shop front” (some Landlords may make you responsible for the shop front and in particular any plate glass fitted in to the building) and “Frozen “stock if you carry goods of this nature.
Insurers rate premiums depending on the type of trade carried out, so for example a shop that sells Flowers will attract a cheaper shop insurance premium than a business that retails Electrical goods
Adding on the Extras
All shop proprietors will undertake an assessment of their business risk and choose the level of insurance they think appropriate and of course to suit their budget, what we like to do at Highhouse Insurance is make you aware of the covers that are available so you can make an informed decision as to what you should in fact purchase.
Shopkeepers Liability Insurance
Many package insurance policies will include liability insurance as part of the core cover, if it is not included, we believe it should be as it is essential for any business and in the case where you have employees, it is of course a requirement of law. Public liability for a shopkeeper comes in three separate sections;
- Public Liability Insurance
- Products Liability Insurance
- Employers Liability Insurance
Public Liability will protect you from claims from members of the public that come on to your premises and are injured, this is of course an infrequent occurrence but even in the most well run establishment in can happen and when it does , claims for compensation can be high. Even if a claim proves to be unfounded, a defence has to be undertaken and this in itself can be a costly and time consuming process. If you are retailing any type of goods, you can be liable for a claim from a member of the public for products liability. Although there is usually a right of recourse against the manufacture of a product, this is not always a guarantee that you will be protected and in the case of a person becoming ill say through food poisoning, it may be possible to prove that your business was negligent in the way it handled or stored goods and you could end up facing a claim for compensation.
If you have any employees, you are required to have employer’s liability insurance (and to keep proof that you have held cover for a period of ten years). The employers liability protection act places a very wide definition of the word “Employee” and you cannot assume that a person say just helping you out, even if unpaid, will not fall under the definition. You must insure for a minimum of £5,000,000 although many of our polices will automatically include a higher limit
Business Interruption/ Loss of Income
In our opinion the above is an extra cover that it would be very unwise not to effect. Most business proprietors can see the relevance of insuring stock and contents but sometimes, especially if you have not witnessed the devastated effects of say a fire or a flood, business interruption cover is overlooked.
Following a serious occurrence there is often a period of time for the reinstatement where the business cannot trade or trade properly resulting in a loss of income, even when trading is fully restored there may be a down turn in turnover as perhaps customers have gone elsewhere. A serious question any business owner should ask themselves is how long the business could or you personally sustain a period of a reduction in sales income. Business interruption can come in two separate types, depending on the type of business you run, one or the other may be more appropriate to you
Increase Cost of Working
Some business simply find it quite easy to up sticks and move to other premises nearby and trading can often be continued with the minimum of fuss but with additional expenditure, other business, this is simply not possible and insurance is available to cover loss of gross income. At Highhouse, we can help you decide what level of cover you require that is best suited to your needs, this may include insuring on an Income basis
Income is defined as, the money paid or payable to you for the goods you sell less your outlay to buy the stock or raw materials- Insurers will also factor in the value of the stock you held at the beginning of a financial year as against that held at the end). Even though you may not be trading some of your business costs may be fixed, these could include heating, lighting,rates and of course employment costs and all of these will need to be factored in to any calculation.
There are a number of “extensions” that can be added to a business interruption section as some claims can result of an occurrence beyond your control, these can include
Denial of Access.-Sometimes, access may not be possible to a business because of an occurrence happening at a neighbouring property. Failure of Public Utilities-If there is an accidental failure of public utilities serving your shop (as opposed to a deliberate action such as cutting off services following failure to pay a bill) you may find that trading is affected. Death or Disease or Closure- Sometimes a business is forced to close for a period of time following a death on the premises or a customer becoming ill
Failure of Suppliers- Sometimes an event occurring at another business supplying your goods may result in loss of business to you, this is particularly important to a business that is operating say as a franchise and stocking goods from one supplier
In practice many of our modern policies now include a fixed sum insured for small business owners which is often far in excess of the actual needs required, this can help guard against under insurance in respect of this very valuable cover.
The above represent what we at Highhouse feel to be the minimum covers you should insure for, but we can also introduce you to other sections of a policy which you may want to consider depending on your business needs, these can include
- Loss of Money
- Staff Honesty
- Loss of Licence
- Business Legal Expenses
Many shop keepers do not stop to think of what would happen to their livelihood, if there was a serious occurrence such as a fire or flood at the premises. Many do not realise that you can insure against such contingencies and this section of the policy could, if you pardon the expression, keep your business afloat in the event of an enforced period of being unable to trade. Following a loss, some costs remain fixed and will continue, even if you are unable to trade, many businesses are unable to sustain a period of no income and thus it is essential that adequate protection is secured, via this section of the policy. The actual sum insured your will receive can be calculated as two separate amounts and depending on the type of shop you run, either or both may apply. They are as follows: 1- Gross Income 2- Increased Cost of Working, the additional expenditure necessarily and reasonably incurred, to carry on running your business, following a claim and during the time your insurance company are carrying out reinstatement. Some modern policy wordings, will not ask you for your gross profit figures, they will simply pick a sum insured for you, This can be ideal for a small business as the sum insured is usually, far higher than is needed. However, you need to pay close attention to the sum insured as you will not be properly protected if the sum insured is not adequate.
Whatever type of shop you run, we look forward to receiving your enquiry.