The time, effort and money invested in building a business through your shop can all go to null one day due to unforeseen circumstances like a natural disaster, fire, etc. If you do not have a proper financial backup to help you get back on your feet, the financial burden can create a crater in your savings.
Shop insurance policy is aimed to mitigate such situations. If you own a shop, then you can get a shop insurance policy to protect the building and its contents from natural disasters, fire, vandalism and many other scenarios that can cause a disruption in your business.
Depending on the type of insurance policy you opt for, a shop insurance policy can cover the building that houses your shop, the building as well as the contents inside it and money stored in your shop. The coverage scope varies from insurer to insurer. Nevertheless, a basic shop insurance policy is a recommended necessity for every shop owner. Here are 10 reasons why it is so:
01. Cover your shop against natural disasters – With a shop insurance policy, you can protect your shop and its valuable contents from natural disasters like earthquakes, floods, storms etc. Because of the unprecedented nature of natural disasters, it can cause a lot of damage to your shop as well as your savings. Insuring it with a shop insurance policy will help you stabilise financially.
02. Protects you financially in the event of a fire – Fire is another major factor that continuously ravages a lot of shops around the world. Short circuits, unmanned dangerous and flammable objects, etc. can cause a fire. Once started, it can sometimes blow up into uncontrollable proportions, damaging the entire property. Hence it is always advisable to safeguard against it with a shop insurance.
03. Cover for your money as well – Most insurance companies offer the option to cover whatever money you have in your till along with the building and other contents inside it. Natural disasters and fire can almost always destroy everything. If you do have the habit of keeping money inside your shop for future transactions, safeguarding it through the shop insurance would be recommended.
04. Protects the owners against dishonest practices of employees – Another relevant clause that many insurance companies offer is protection against any losses your company could incur due to malpractices from your employees. This is known as Fidelity guarantee. If any malpractice occurs while your employees discharge their duties with regards to money transaction or goods, the financial losses arising out of it will be covered under this clause.
05. Protect your building and contents against man-made disasters – Riots, strikes, vandalism and civil commotions are other man-made disasters that can equally wreak havoc on your business. You can protect against such sudden commotions with this policy.
06. Covers for public liabilities – If any third-party, i.e. someone who is not the owner or the employee of the shop, suffers from any bodily damage or property damage while they are in your shop or its premises, they can sue you for those damages. A shop insurance policy will be able to undertake such liabilities and cover for them.
Read more : What Is Public Liability Insurance?
07. Additional add-ons like terrorism cover to protect against modern-day challenges – You can further increase the scope of your shop insurance coverage with an add-on for an extra price. Terrorism add-on is one such add-on. If your shop gets damaged due to terrorist activity, this will cover it. You can also opt to increase the coverage amount through escalation add-on.
08. Personal accident coverage for the owner – If the owner of the shop suffers permanent disability or death, then compensation will be provided to the immediate family through this clause. Not every insurance company might offer this. The terms and conditions could also vary from insurer to insurer.
Read more : What are Life insurance plans?
09. Creates financial backup for shop owners – The primary reason for getting a shop insurance is, if you are a shop owner then it could be the sole source of bread and butter of your family. If you find yourself one day without your shop, it can throw your whole financial balance into disarray. Without a financial backup, it could leave you in shambles.
10. Helping hand for multiple shop owners – Shop insurance can come in handy for multiple shop owners. The more shops you have, the probability of something bad happening to either one of them increases. Hence shop insurance is the best way to combat uncertainties.