If you are a hard-working owner of your high street fashion boutique, a cutesy flower shop, a vintage bookstore, or a high end jewelry store, it is vital for you to invest a bit in a retail insurance policy. Working hard for everything and owning your dream poses a lot of risks that you must prevent at all cost. To prepare yourself for the worst situations and protect your business against the potential risks, seeking retail business insurance is the only right option.
If you are unaware of what retail business insurance is and the benefits it offers, then you are at the right place as we will be discussing the same in this article. We will cover all the prospects that are offered by the retail business insurance and also provide you the information to obtain the insurance for your business. Follow through the end of this article to learn everything about it.
What is Retail Business Insurance?
A retail business insurance is a general insurance product that is provided to an individual. It is used by an individual regarding connection with a small business. The insurance is suitable for a range of different retail stores and businesses. The policies cover a number of necessary prospects and can also be tailored and customized according to the requirements of your business needs.
The policies are of the following types:
- Motor vehicle insurance product
- Home contents insurance products
- Sickness and accidents products
- Home building insurance products
- Personal and domestic property insurance product
- Consumer credit insurance products
- Travel insurance products
How can you protect your retail business with the right insurance?
Being a retailer is one of the most rewarding careers out there, as the self-gratification you get to provide the exact products and services people need is exceptional. You help them bring satisfaction and joy which in turn satisfy you in a way or another.
To protect this mutual relationship and maintain the level of satisfaction securely, you need a retail insurance to cancel out all the potential risks and keep yourself on the safer side. The retail can be as challenging and complicated as it can be fulfilling and bringing you joy. Especially during the economical shifts, downturn and uncertainty, one such as we experienced during the Covid-19 pandemic, the situations can get out of hand and be unbearable to business successfully.
Among all of the industries that were devastated due to the pandemic, hospitality and retail business faced severe effects. However, all the things made the people in retail more aware about sustainability, technological advancements and it also helped people understand more about the significance of the retail business insurance policies that can make their business model more fluid.
eCommerce has contributed a lot to the ever-evolving retail businesses and has given a new face to the retail industry. This is one of the important factors that allowed the retailers to stay afloat in drowning economies. Insurance policies are another most important aspect leading to the survival of the retail businesses in tough economic situations.
Does your business even need retail insurance?
Regardless of what retail business you are a part of, there will always be certain risks revolving in the economy and purchasing a retail business insurance will help you divert some burden to a third party that you will be compensating for otherwise. Even if your retail business is operating completely online, there is a risk of cyberattacks that can shatter your whole platform within minutes.
And that is the reason why putting together a proper risk management plan is going to save you a lot of time, money, and peace of mind. It will help you to avoid the burden by reducing risks and transfer unavoidable damages to the third party that is your insurance carrier for coverage.
Before going into that you need to be aware of the potential risks and problems where the retail business insurance policy can help you. You also must know what policy can provide you what coverage so you can choose accordingly for your retail businesses’ security.
Main areas covered by a Retail Insurance Policy
General Liabilities :
- It is important for the retail owners to learn about the liabilities. When we are talking about retail insurance, liability can be broken down into three categories – public, employer, and product liability. The claims that are made by the members of the public are covered under the public liability aspect. These are the claims that involve public injury, damage to the people that has been resulted from any activity of your business. Let’s say a customer of yours fell due to the water on the floor of your shop and got injured, such accidents will be covered or compensated under your retail business insurance policy.
- Similarly, the employer’s liability will cover the claims of your employees and the damage or any injury caused by your product to the customers, employees or the visitors coming to your retail store will be covered under this prospect of your insurance policy.
Premises Protection :
- There are certain acts and situations which might happen without any given warning and can lead to damage to your property or premise, such as vandalism acts, theft, natural calamities such as flood or earthquakes. Retail business insurance policy will cover all such areas where your premises get damaged due to an unalarmed accident by restoring your property to the functional condition so that your business does not get affected.
Security of Stocks and Contents :
- Owning a retail store you have to deal with all the stocking and loading equipment to your store that is large in quantity as well as in price. As an owner of a small business, suffering from the loss of months worth of stock due to any underlying reason, can shatter your financial security as well as make it seemingly impossible to get back to normal.
- Fortunately, the retail business insurance policy covers the content and stocks damage that allows the retailers to get stable without struggling with the losses. The policy will help you get all the things back in place without your finances being affected.
Coverage of Income Loss :
- Due to the uncertainty caused by the adverse climatic conditions, or the acts of vandalism or thefts and robbery, sales are badly affected leading to the decline in the business. Trade can hinder and even completely stop until the damage has been repaired. This income loss can dismantle your financial condition, but thanks to the retail business insurance policy that will cover this income loss and make you stay stable and moving forward.
Legal Protection :
- As other natural causes that can hinder your business stability, be it any natural disaster, declining economy, or thefts and loot, legal protection becomes of great significance that you must consider as your responsibility. Even if you are taking full responsibility for things as a retail business owner, you should stay cautious about the legal actions that might be brought upon you for any reason.
- Let’s say you want to take a legal action against your goods supplier or a competitor or maybe you need to defend yourself during an HMRC tax investigation, as a small business owner if you do not have enough capital to support your claims, you will probably be closing your business in some months as the legal fees do not come cheap.
- However, having retail business insurance can turn the tables as the fees will be covered by your policy providing you not only with legal security but also with mental and economic stability.
Cyber safety :
- From being encouraged by the sustainability norms you have finally moved your entire business to the online platform, so now you think you are secured and do not need any insurance policy, is it? We are sorry to break it to you that ever since the digitalisation has taken over, there is an increase in the number of cyber crimes and attacks that will leave your business with nothing but a glitch.
In such cases you are not even left with the crumbs to start again with, and that demands retail business insurance policy more than ever. Phishing attacks are super hard to prevent as they figure out ways to sneak into your account by tricking you with links to click and other downloads through emails.
Most of the time cybercriminals do not even need to sneak into your emails, but they directly attack your database and get access to your confidential information. A reliable insurance policy will help you through such times by compensating for the loss and supporting your website to pull back up successfully.
Where does the retail business insurance lie on the cost bar?
There are a number of factors that will affect your retail business insurance policy’s cost. Some of them are given below:
- Number of policies you buy
- Policy limits and types of coverages
- Business assets
- History of previous claims
- Number of employees you have hired
- Field or industry of retail business
- Nature of the business
The basic rule of thumb is as you increase the number of coverages, the retail business insurance policy’s cost will increase accordingly.
How to obtain the right retail business insurance?
Getting a retail business insurance may seem like a hefty task with a lot of paperwork to do but given below are some basic steps you need to follow to obtain business insurance that fits the requirements of your retail store in no time.
Assess the risks involved.
- What do you think might hinder the flow of your smooth running business? Does your retail store involve people to drive cars, vans, or bikes for delivery? Does your custom handbag store have a backroom with a fleet of expensive machines and equipment that can be subjected to robbery or theft? Make a list of all these common risks that might cause disruptions to your retail business in future.
Determine the coverage needs
- Now when you are aware of all the potential risks and damages that might occur, you need to learn about the types of retail insurance and commercial property insurance that are available in the market. Pick the one that meets the needs of your retail business.
- For example, if you have employees working with you then they may demand worker’s compensation insurance, whereas if your business is operating online you may be fulfilled with the data breach coverage.
Choose where to buy.
Depending on your preferences you can work your insurance out with a broker, contact providers or even use an insurance marketplace for the same. If your business demands for complex coverages and multiple policies, then going with an insurance broker can save you a lot of time.
Choose the right provider.
- When choosing a provider, there are some factors you need to consider such as the liability limits, coverages, and most importantly the cost. Comparing individual providers can give you insight and you can learn things like filing a claim, evaluating customer services, online reviewing and claims as well as other administrative procedures.
Purchase and renew the policies.
- After all the assessing and deciding the end point is to sign up for the proper policies. One important thing to note is that you will be required to request a certificate of insurance for obtaining a proof of your commercial lease agreement or application.
- You can reevaluate your coverages by adding or eliminating certain prospects at the time when your insurance policy is up for renewal. It is important to stay updated on your retail business insurance policy every year in case you decide to move locations or change the plans.
Choose Commercial Coverage Plus for further guidance
Every retail business operated uniquely in every form, be it the number of employees, goods and services, number of loyal customers and clients, etc. Our litigious society has made the retail businesses aware that no matter how things are going there still lies chances of dealing with some or other legal action at some point of time. This is what gives business insurance policies their significance and power to hold your business stable at the times of decline.
The professional experts at Commercial Coverage Plus can help you with the required guidance and support with choosing the right insurance policy for your retail business. Give a direct and get a quote today to learn more.