What is Shop Insurance?

Retail and store establishments are shielded against a range of risks and liabilities by business insurance policies known as shop insurance, store insurance, or retail insurance. Some of the content is intended to meet just like shop, boutiques, supermarkets, and other retail outlets have special requirements.

Here are some common types of coverage included in a typical shop insurance policy:

1. Property Insurance: Protects the physical structure of the shop and its contents against perils such as fire, theft, vandalism, and other specified events.
2. Liability Insurance: Covers legal liabilities arising from injuries to customers or third parties on the premises. This can include slip-and-fall accidents or other injuries.
3. Business Interruption Insurance: Provides coverage for lost income and extra expenses if the shop is temporarily closed due to a covered event (e.g., fire or other property damage).
4. Commercial General Liability (CGL): Offers broader liability coverage, encompassing various types of third-party claims, including bodily injury, property damage, and advertising injury.
5. Product Liability Insurance: Protects against claims related to the sale or manufacture of products, particularly if a product causes harm or injury to a customer.
6. Employee Theft Coverage: Safeguards the business against losses resulting from theft or dishonest actions committed by employees.
7. Cyber Insurance: Covers losses resulting from data breaches, hacking, or other cyber incidents that could compromise customer information.
8. Equipment Breakdown Insurance: Covers the cost of repairing or replacing essential business equipment, such as cash registers or refrigeration units, in the event of a breakdown.
9. Commercial Auto Insurance: If the business owns vehicles for deliveries or other purposes, commercial auto insurance can provide coverage for accidents and damages involving those vehicles.

The specific coverage and policy terms can vary based on the insurer and the unique needs of the retail business. Shop owners must carefully analyze and modify their insurance policy to guarantee appropriate coverage against any threats. It may be easier for you to understand business insurance and tailor it to your particular requirements if you work with an insurance expert or broker.

Benefits Of Shop Insurance

1.    Fire It covers loss or damage to buildings and contents due to fire, lightning, strike, riot, storm, cyclone, flood etc.

2.    Burglary: It covers any loss or damage caused by burglary or attempt of burglary to contents in your shop

3.    Money(Safe & Transit): It covers loss of money due to burglary of cash in a safe place or in transit from shop to bank/atm and bank to shop. The premium is calculated from Per Sending Limit as defined by the insured.

4.    Fidelity: It covers financial losses due to fraud or dishonest acts of salaried employees.

5.    Cheque Forgery: Loss occurred due to forgery or material alteration of cheques, drafts or any negotiable instruments issued by you or in your favor

6.    Personal Accident: Bodily injuries because of an accident resulting in death or permanent total disability. It also provides for ambulance charges upto Rs 2000 and in the event of death for carriage of dead body

7.    Public liability: This cover provides for legal liability on behalf of the proposer for accidental death or bodily injury to third party excluding resident employee or domestic staff as well as accidental damage to third party property.

WHAT IS COVERED?

A - Fire and Allied Perils for Building

B - Fire and Allied Perils for Contents

The Physical Structure of Your Shop (Under Section 1A) And the Contents Therein (Under Section 1B) Can Be Covered Against Fire and Allied Perils. These Comprise:

•  Fire
•  Lightning
•  Explosion/Implosion
•  Aircraft Damage
•  Riot, Strike, And Malicious Damage
•  Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood, And Inundation
•  Impact Damage
•  Subsidence And Landslide Including Rockslide
•  Bursting And/or Overflowing of Water Tanks, Apparatus, And Pipes
•  Missile Testing Operations
•  Leakage From Automatic Sprinkler Installations
•  Bush Fire
•  Earthquake (Fire and Shock)
•  Terrorism Cover (Optional).

Section 2 - Burglary and Housebreaking

Section 3 - Mechanical and Electrical Appliances

Section 4 - Electronic Appliances

Section 5 - Money Insurance

Section 6 - Baggage

Section 7 - Fixed Plate Glass and Sanitary Fittings

Section 8 - Neon Sign/Glow Sign/Hoarding

Section 9 - Personal Accident

Section 10 - Infidelity/Dishonesty of Employees

Section 11 - Legal Liability

1. Towards Employees
2. Legal Liability Towards Third Parties

WHAT IS NOT COVERED?

•  Loss or damage due to war and nuclear perils.
•  Damage to property due to pollution and contamination.
•  Loss or damage due to wear and tear, gradual deterioration or slowly developing flaws.
•  Consequential loss of any kind.
•  Willful act or gross negligence on the part of the insured, resulting in loss or damage.
•  Damage to property if it is moved to any other location other than that stated in the policy schedule.
•  Loss or damage due to burglary and housebreaking when a family member is involved in the same.
•  Faults in electrical appliances existing at the time of commencement of the policy or manufacturer’s defects.
•  Shortage of money due to errors and omissions.
•  Loss of or damage caused by or due to action of any lawfully constituted authority or government body.
•  Loss or damage for which the manufacturer or supplier or repairer or transporter or any other third party is responsible either in law or under a contract.