Retail properties such as the shop, pub and restaurant obviously have large numbers of the public enter them on a regular basis. As such it is essential for the owners of this type of premises to obtain decent insurance that will cover the business from all aspects of operational activity. For a shop, restaurant or bar having members of the public inside the premises is the ultimate objective when trying to make money. Covering the business from the dangers that the public bring is however vital.
It is an untenable situation to be constantly worried about having the public on a business premises when in the retail or hospitality industry. There is literally no way to run a business with this constant fear, so for piece of mind, those in this industry regularly utilise shop insurance policies. It is an inevitability that accidents will happen when in the retail industry; for instance, those who own a shop will at some point have boxes in the aisles or spillages on the floor, naturally at some point it is likely that someone will fall over; this is where insurance pays dividends in protecting business finances from lawsuits.
It is not always the members of the public that need to be worried about however, as a retail manager just as important a concern is the activities of staff members whilst they are on duty. For instance, restaurant workers will often have to carry hot or heavy items leaving open the opportunity for lawsuits against the business for injury. Insurance can once again help employers protect themselves from this type of lawsuit with specialist policy inclusions. Another inclusion that is frequently taken by shop and restaurant owners is theft or fraud insurance, this can help the company recover should a member of staff help themselves to money from the till or safe. The following is a brief list of some of the most important forms of insurance for the shop, restaurant or bar.
First and foremost any business, not just those in the retail sector must have employer's liability insurance. This has been a compulsory business concern since the sixties and the release of legislation that placed the onus of health and safety responsibility squarely on the shoulders of the employer. Fundamentally this type of policy covers employers from any illnesses, injuries or even deaths that may occur when a staff member is working on the business premises.
While the last inclusion was compulsory for all businesses, the next is more suited to the retail sector and although not legally needed, is worth buying purely due to good business sense. Essentially public liability insurance helps to protect a business from the actions of members of the public whilst they are on the premises or using the business' services. This will help with compensation payouts and in most cases will also cover legal fees.
Any shop should take out some form of buildings cover. Like a residential property business premises are just, if not more, susceptible to instances such as fire, thefts and break-ins. As there is normally a large financial investment in the business premises it is advisable to cover it. As an adjunct to this it is especially important for shops to have some form of stock insurance, it is often the case that the stock present on a business premises represents a major financial investment. Insurance can help in protecting this stock from instances such as theft or damage.
It is hoped that this information has helped to clarify the essential need for insurance in the retail industry. For those who run a shop, bar or restaurant it is a vital decision that should be taken early when beginning operations.
Retail industry expert Thomas Pretty looks into the importance of shop insurance in the protection of business finances.