Get the Best Shop Insurance December 2024

InsurerMonthly premium (from)CharacteristicsReviewLearn More
Ageas - Car, Home, Van and Pet Insurance - Ageas
⭐️ 5/5
£5.89 Property
Business interruption
Legal expenses
Employer’s liability
Public and product liability
Our recommendation

  • Rated great on Trustpilot and 5 star by Defaqto
  • Excellent customer service
  • Award-winning claims service
Get a quote
With our partner Quotezone
Ficheiro:AXA Logo.svg – Wikipédia, a enciclopédia livre

⭐️ 4,5/5
£6.00 All risks cover
Loss and damage
Replacement of locks and keys
Breakdown or failure of computer is optional
Specialist and trusted provider

  • Rated excellent on Trustpilot
  • Expert claims management
Get a quote
With our partner Quotezone
Hiscox — Wikipédia

⭐️ 4/5
£6.25 Damage to the building
Accidental damage
Personal items
Rebuilding costs
Portable equipment (laptop and phones)
Award-winning insurer

  • Hiscox office insurance provides cover for items such as expensive artwork or a visitor's personal property
  • Unlimited policy changes
Get a quote
With our partner Quotezone
Ficheiro:Zurich Insurance Group logo.svg – Wikipédia, a enciclopédia livre

⭐️3/5
£7.30 Business interruption
Loss or damage to premises
All risks cover
Machinery and stock assets
  • Rated 3.2/5 on Trustpilot and 5 stars on Defaqto
  • Good paid claims rate
Get a quote
With our partner Quotezone
RSA News and Video | youTalk-insurance.com

⭐️2/5
£9.45 Damage to the building
Machinery and stock assets
Business interruption
Money Insurance
Terrorism Insurance
  • Bad customer satisfaction rate
  • Poor rate on Trustpilot
Get a quote
With our partner Quotezone

Did you know that more than 8,000 shops close each year in the UK, never to reopen again? Managing the finances of a shop is difficult and even if you get everything right then something completely unexpected can come along and blow your finances out of the water. One way to be prepared is to have the best possible insurance in place, an insurance that covers all likelihoods and will even compensate you if you are forced to close your business down for a short period.

In this guide we will review some of the best shop business insurance packages in the UK, show you what they cover, what they cost and what extras are worth adding on.

Ageas shop insurance review

Ageas is an international insurance company founded as AG in 1824. They have over 4 million customers in the UK and also provide home and car insurance. Their customer lines are open 7 days a week 24/7. You can buy Ageas shopkeeper insurance through a broker. Claims can be made through their online portal using a simple form.

Pros

  • Goods in transit coverage means that even while being transported your goods are secure
  • Online claims service

Cons

  • Can only be purchased through a broker

AXA shop insurance review

AXA are a massive multi-national insurance company working around the globe. They have adapted their shop insurance to the specific needs of both physical and online shops. Particularly of interest to shop owners are the 24-hour glass replacement service which means that if your shop window is broken you can be open again the next day and the free 30% season additional coverage for stock which means that you can boost your protection in the run-up to Christmas when you might have more stock than usual.

Pros

  • Can increase stock coverage by up to 30% for specific periods (e.g. Christmas)
  • 24-hr shop window replacement
  • 24-hour helpline for legal problems
  • Up to £2,500 covered for loss of income

Cons

  • Small range of optional extras

Hiscox shop insurance review

Hiscox is a specialised insurance provider founded in London in 1901. It offers tailor-made insurance packages for different types of shops including:

  • Pet shops
  • Florists
  • Online shops
  • Grocers
  • Butchers
  • Garden centres
  • Cabinet makers
  • Food shops
  • Opticians
  • Jewellery designers
  • Travel agents

Rather than offering blanket, one-size-fits-all policies that could apply to any business, Hiscox has taken the time to craft policies that will fit your type of shop's specific needs.

Pros

  • Tailor-made insurance policies for a variety of businesses
  • British based with an understanding of local needs
  • Guidance on cyber attacks and fraud

Cons

  • Some types of business are not covered

Zurich shop insurance review

Zurich is a Swiss insurance founded in 1872 and one of the largest insurers in the world. Zurich shop insurance covers a wide range of businesses and includes trade-specific extra coverage depending on your type of business. Zurich won a 5-star eTrader rating in 2022 for its transparency of service and responsiveness to customer queries and claims.

Pros

  • Loss of attraction coverage
  • Named diseases coverage
  • Lottery winners coverage
  • Trace and access coverage
  • Loss of income due to court attendance coverage

Cons

  • A limited number of regional offices in the UK

RSA shop insurance review

RSA was founded in 1996 in London, however, its roots go back to the Sun Insurance company which was founded in 1706 and is one of the oldest in the world. RSA offers shop retail insurance for small to medium-sized businesses. It has flexible limits and is a good choice for sole traders. It offers temporary persons employed cover which allows you to add on seasonal or substitute workers for 50 days. Its retail shop insurance package is targeted mainly at hairdressers, takeaways, beauty salons, convenience stores, grocers and cafes.

Pros

  • Policies are specifically for small to medium-sized businesses. This means that premiums are low as clients are insuring less valuable stock and contents
  • Loss of frozen foods cover
  • Loss of alcohol license cover included
  • Options to add on alcohol and tobacco stock cover
  • Shop insurance for small business

Cons

  • Not for shops with contents worth more than £20,000
  • Not for shops with stock worth more than £10,000

What is shop insurance?

Shop insurance is a type of business insurance designed to protect the owners of public-facing businesses. Shop insurance covers a business's liabilities towards its employees and customers primarily. It may also offer protection against loss of stock, theft and property damage.

Commercial shop insurance is the responsibility of the business owner. If the shop owner is also the owner of the building that the business is based in then they will be responsible for insuring that too. If the shop owner is a tenant, then the landlord will be responsible for insuring the building.

Do you need shop insurance?

The minimum level of shop small business insurance in the UK is employer's liability insurance. This is required in case one of your employees is injured in the course of performing their job. Say for example an employee hurts their back while lifting something heavy or slips on a wet floor. Employer's liability insurance will cover any payout that the employee is entitled to.

Beyond the minimum is shop insurance worth it? We would say yes. Businesses can run into all sorts of unforeseen problems such as burglary or stock loss due to factors outside of your control. If an entire shipment of product was damaged or you were unable to sell it would you simply be able to rebuy it without worry? If a fire or flooding were to close your shop for a couple of weeks, would you be able to absorb that loss? Shop insurance gives you peace of mind, knowing that your business is protected from unexpected events.

What does shop insurance cover?

Broadly, shop insurance protects you from loss of income and from compensation payouts. Loss of income might come from your business being forced to close or you having an accident which prevents you from operating your business. Compensation payouts can happen if a member of the public or an employee is injured or has their property damaged in your shop. Some insurance companies will extend these protections for specific circumstances. For example, a food shop will want to have an insurance policy that protects them if a client gets sick from eating one of their products.

Building and contents insurance protects your place of work and the tools contained within it. If a car crashed into your shop, for example, these would cover the cost of repairing the building and the tools and equipment inside the shop that were damaged. The cost of replacing even a shop counter can be very expensive, let alone the cost of refrigerators or optometrist equipment.

CoverageWhat it protects
Buildings insurance
This covers the physical building of your shop or shops. This only applies if you own the building.
Shop contents insurance
This protects the non-stock contents of your shop. For example, it would protect kitchen equipment, hairdressing tools, computers, or tills.
Shop public liability insurance
This protects you if a member of the public is injured on your premises or if their property is damaged. This covers legal fees or compensation.
Employers’ liability insurance
This is the minimum level of mandatory shop insurance, it protects you if any of your employees are insured.
Business interruption insurance
This covers loss of income if you are forced to close due to fire, floods or other factors outside of your control.
Personal accident cover
This compensates you for loss of earnings if you are injured and are unable to keep your shop open.
Stock insurance
This protects you from loss, damage or theft of your stock. Note, this should be covered at purchase price rather than retail price.
Business shop insurance

What does shop insurance not cover?

Always remember when buying insurance to read your contract carefully and twice, paying particular attention to the exclusions to avoid nasty surprises later on. Most basic shop insurance policies will not cover the following, although some of them can be purchased as optional add-ons.

  • War
  • Terrorism
  • Damage or loss as a result of policyholder's criminal activities
  • Damage of loss of offsite stock
  • Loss of alcohol license
  • Legal expenses unrelated to compensation

Watch out!

Most shop insurance policies explicitly exclude compensation for the interruption to business due to Covid-19. Make sure to ask your broker when purchasing if your policy covers it.

How much shop insurance do you need?

How much insurance you need will depend largely on the type of shop you are running. More expensive stocks such as high-value electronics, jewellery or antiques might require extra levels of coverage. Small business shop insurance will tend to have lower monthly premiums. Some insurance companies cater specifically to smaller businesses and may offer more competitive rates.

Good to know

Remember: stock should be insured at purchase price rather than retail price. You want to make sure you are covered sufficiently so that you would be able to rebuy stock to replace damaged goods. If you insure your stock at retail price you may end up paying unnecessarily high premiums.

Other factors that might mean you need increased levels of coverage include the area you are positioned in (for example a convenience store in a high-crime neighbourhood) and the nature of your employees' day-to-day work (butchers injure themselves more often than travel agents).

What shop insurance extras are there?

Certain types of shops in certain areas may need extra levels of coverage. For example, shops selling alcohol may want to consider the loss of license cover. Say one of your employees unknowingly sells alcohol to a minor, this could result in your alcohol license being taken away which would be very damaging to your business. Loss of license cover would protect you from profit loss while you work to regain your license.

We have laid out and explained some of the most common extra covers that can be added to shop insurance below.

Extra CoverageWhat it protects
Legal Cover
This will protect you against legal claims that are not covered under public liability and employer's liability
Offsite Stock Cover
This protects you against theft and damage of stock that is stored away from the shop in another location
Loss of License Cover
This protects against the loss of profit due to the loss of an alcohol license
Terrorism Cover
For shops in high-risk zones, this covers damage or loss of income from a terrorist attack. Terrorism is usually excluded from standard insurance policies.
Frozen Foods Cover
This covers the cost of replacing frozen stock that is damaged due to a power cut or failure of refrigeration equipment
Alcohol and Tobacco Stock Cover
This provides extra stock cover for alcohol and tobacco stock
24 hour Glass Cover
This will replace your shop window within 24 hours
Insurance shop extras

How much is shop insurance?

The cost of a shop insurance policy will be dependent on a large number of facts such as the number of employees, the value of your stock, whether you are in a flood-risk area and how expensive the business equipment your shop uses is. Business equipment covers the non-stock contents of your shop. For example, an electronic till will not cost much to insure. However, if you use kitchen machinery, industrial tools or computer systems then the cost of covering these will raise your insurance premiums.

To help you get an idea of the basic costs of buying shop insurance we set out examples below of averages for a small business requiring the minimum levels of coverage.

CoverageAverage monthly premium cost
Public and products liability insurance
£13
Employer's liability insurance
£11
Professional indemnity insurance
£7
Business equipment
£4
Legal expenses
£3
Personal accident
£18
Shop quote insurance

Is there online shop insurance?

If you have employees you will still need to have employer's liability insurance even if there are no bricks and mortar shops. Loss of stock and business interruption are still dangers to online shops so we would recommend at least having these basic coverages.

An online business is still a business and runs many of the risks and unforeseen problems that a physical shop does. As a responsible shop owner and employer, it is your duty to make sure that your business is adequately protected.

What is flood risk shop insurance?

Damage to your business and potential loss of stock due to flooding is covered by buildings, contents and stock insurance. However, if your shop is in a high-risk area for flooding, then insurers will likely charge higher premiums. You can check if your shop is in a high-risk area on the GOV.UK website.

If you want to reduce your premiums you could consider flood-proofing your shop or taking out a specific flood-risk insurance policy.

How to find a cheap shop insurance quote?

The best way to find cheap insurance for shops is to use online comparison tools. At the top of this page, there is a free-to-use comparison tool which will allow you to compare the protections offered by leading insurers.

Did you like this article?
author-profile-picture/
Nishadh Mohammed
hellosafe-logo
hellosafe-logo

Nishadh Mohammed is a seasoned news editor and financial writer, working with HelloSafe since May 2023. Nishadh has developed expertise in financial markets, insurance, and investment products, with a deep understanding of the Canadian financial landscape. He has honed his SEO skills and content marketing strategies while writing for Canadian publishing houses. Armed with a master's in Business Analytics and extensive journalistic experience, Nishadh uniquely combines data proficiency and thorough research to deliver comprehensive and accessible information.