1. Buildings Cover
This covers against damage caused to the structure of the building in the event of an insured incident / peril, i.e. including flood, accidental damage, fire, glass breakage etc. If you are renting your shop then this may not be a necessity and can be omitted from the policy – a correct valuation of the reinstatement value of your buildings is vitally important.
2. Fixtures & fittings
Every shop will have either a small or large element of fixtures & fittings and contents, depending on the size of the shop. These can be anything from fridges, shelving, till registers, counters & office equipment. This is an important element of retail insurance as many shops may have at least a minimum €5000 – €10,000 worth of contents. What is classified as a “fixture & fittings and contents”, in layman’s terms if you can imagine picking up your building and everything that falls loose (aside from stock) should form part of your total sum insured for Fixture & Fittings & Contents.
Again, every retail outfit will have some element of stock depending on the size of the business. Stock is covered in the event of an insured peril occurring e.g. fire, theft, flood etc. Stock should be insured for cost value & not resale value. Target stock is another name for cigarettes and alcohol. These should be noted separately on the policy as they are high risk items in terms of theft and will attract a different rating from an insurance underwriter.
4. Money Cover
In the current Covid environment shop owners may not feel the the need to insure for loss or theft of money cover but it is important to know that the cover is not unlimited and really should be set by the customer at an appropriate level for their business. Many insurers will have a standard limit of €5000 cover for cash cover in the event of theft, fire etc. this can be increased for larger businesses. Money cover can include cash in the register, in the safe, in transit to the bank, in a night safe and at the clients house (all on request).
5. Public & Employers Liability
Cover in the event that the retail owner is found to be responsible or the injuries/loss sustained by a Customer / Employee following an incident on the business premises. Example: A member of public or an employee slips on a wet floor and injures themselves.
6. E-commerce & Cyber Insurance Cover
One of the interesting developments to come on the back of the Covid 19 pandemic is the large volume and uptake of all types of retail businesses designing and implementing an online retail strategy. Consideration should be given to the security of your Cyber Security Setup and what customer information is retained. Sizeable fines now exist where it is shown a data breach occurred. Up to 41% of Irish SME businesses have reported a Cyber-attack or Extortion attempt in a six month period. (Hiscox Global Cyber Survey Dec 2019). A suitable Cyber Insurance Policy should be considered by all business owners in the current climate
7. Engineering Inspection & Certification
Equipment owners and managers can typically have a diverse, complex and large number of plant and equipment types under their direct control and or supervision. With this comes legal responsibility to ensure equipment and plant is safe and that the necessary Health and Safety requirements are being satisfied. One requirement that Retail / Hospitality Business owners may not be aware of is there is stringent legal obligation to ensure that Commercial Coffee Boilers incorporating a pressure vessel (e.g. Cappuccino makers) which generate steam are legally required to be inspected and certified by a competent and independent person at periodic time periods, failure to do same may invalidate your insurance cover in the event of a claim arising.
8. Managing Risk
Sometimes there can be obvious fire risks in your store, such as racks of clothing, fabrics, soft furnishings, rolls of carpet, and items in cardboard and plastic packaging which can easily ignite. Also remember not to overlook smaller items such as aerosols, which may be flammable and can explode if exposed to high temperatures or fire.Hardware and DIY stores can hold paints and other solvents close to combustible stocks (e.g. timber). Poor housekeeping is a major factor in a lot of fire related claim. Cardboard and combustible packaging stored untidily in the premises, or wheelie bins located close to or adjoining the building make it easier for fires to spread whether started by arson, electrical fault or discarded smoking materials. Professionally installing, maintaining and regularly inspecting electrical equipment is also imperative in older buildings especially retail/commmercial settings to ensure the electrical systems are not overloaded which could give rise to a fire.
“Our Business Insurance team would love to hear from you if you have any questions regarding your Business Insurance. We know how important it is to have your business properly insured and at a keen price. In terms of retail insurance, we have a range of insurers who are both competitive on price while also offering some great cover benefits. Why not contact us on 068 59983 and we’ll happily discuss your needs”