Public liability insurance for retail

In case your retail business and products cause an injury or property damage.

What’s typically covered by public liability insurance?

Claims against your business for:

• damage to someone’s property, because of your retail business
• an injury or illness caused by your business activities or products
• accidental damage or injuries caused by your employees

For example:

• a customer trips on a loose cable while on your premises, falling and breaking their arm in several places – they need surgery and time off work
• your employee is mopping the floor but forgets to put up a safety sign, causing an electrician to fall and injure their back

What you’ll need additional cover for

• road accidents – we can cover incidents related to deliveries like theft, damage, slips, and trips, but you’d need specific insurance for accidents involving a vehicle

Read more about public liability insurance

Employers’ liability insurance

In case anyone gets ill or injured while working for your retail business.

What’s typically covered by employers’ liability insurance?

Claims against your business for:

• an injury or illness that happens as a result of working for you (including temps and casual workers)

**Employers’ liability insurance is required by law if you have people working for you. Without it, you could be fined up to £2,500 a day for each employee.**

For example:

• while taking in a delivery, your summer temp drops a crate on their foot and breaks two toes – they won’t be able to work for at least three weeks
• your employee gets an electric shock when plugging in the hoover at the end of the day, damaging some nerves in their hand

Business contents insurance

In case something happens to your fixtures and fittings or operational equipment.

What’s typically covered by business contents insurance?

• accidental damage to your fixtures and fittings, or the equipment you use to run the retail business
• theft, flood, and fire damage

For example:

• the sound system you use in-store is stolen while you’re closed for Christmas
• a maintenance professional damages your expensive lighting set-up with their ladder

Read more about business contents insurance

Stock insurance

In case something happens to the items you keep in stock.

What’s typically covered by stock insurance?

• loss, damage, or theft of things like prepared food items, sellable products, and other materials you use to stock your retail business

For example:

• one of your fridges fails during a heatwave and you need to replace all the chilled goods you keep in stock

Read more about stock insurance

Business buildings insurance

In case something happens to your retail premises.

What’s typically covered by building insurance?

• the cost of repairing damage to the structure of your building (or rebuilding it from scratch)
• damage to fixtures and fittings
• damage to underground pipes and cables you’re responsible for

For example:

• your wrap-around glass windows are smashed and graffitied by vandals, and you need to stop trading until they’re made safe
• a fire in the premises next door damages your retail space doors, stock room, and back office

What you’ll need additional cover for

• tenants’ improvements – changes to the property’s structure which you’ve organised and paid for yourself, like partition walls or wooden flooring

Read more about business building insurance

Business legal protection

In case you’re hit with legal expenses connected to your retail business.

What’s typically covered by business legal protection?

• legal costs attributed to your retail business
• property damage, nuisance, or trespass – specifically, the associated legal claims and compensation payouts
• tax and compliance disputes and investigations you need help with
• includes a tax advice helpline, a 24/7 confidential legal helpline, and crisis PR support to help you protect your reputation as a popular retailer

For example:

• you need to pay legal costs during a dispute with a contractor, which goes on for the best part of a year
• the kitchen fitting company you’ve hired are delayed by a month and you can’t open the café area in your retail space – you sue but incur costs in the process

Read more about business legal protection

Personal accident insurance

In case anyone you’ve covered is accidentally injured, at work or off-duty.

What’s typically covered by personal accident insurance?

• accidental injury or death at work or elsewhere, for anyone covered on the policy
• lost income, medical costs, and hospitalisation benefit

For example:

• an employee breaks their jaw while playing rugby at the weekend, and will need time off for surgery and recovery
• you injure your hand while putting up a shelf in your retail space – you need stitches and won’t be able to drive for two weeks

Read more about personal accident insurance

Is public liability enough for third party property damage?

In some situations you may need more than public liability to cover certain kinds of property damage.

Which type of workers do I need insurance for?

Employers’ liability insurance is a legal requirement if you employ people.

If you have people working for you, including bona fide subcontractors (BFSC), labour-only subcontractors (LOSC), part-timers, or full-time staff, employers’ liability insurance is required by law.

Read on for our simplified guide to the difference between labour-only subcontractors and bona fide subcontractors.

Does retail insurance cover my work correctly?

Make sure you’re picking the right cover to protect you properly. It’s important to know that if you have another trade or job, you’ll need additional cover. For example, do you need to consider online retailer insurance or coffee shop insurance?

Do I need cover for other types of work?

If you provide other services, make sure you’re covered:

• Music shop insurance
• Pet shop insurance
• Fish and chip shop insurance
• Fashion shop insurance
• Cycle shop insurance
• Shoe shop insurance
• Off licence insurance
• Green grocers insurance

Other types of insurance

• Limited company insurance
• Self-employed insurance
• Freelance insurance
• Consultant insurance
• Contractors insurance
• Sole trader insurance
• Warehouse insurance
• Factory insurance
• Wholesale insurance
• Manufacturing insurance

Which public liability cover limit should I choose?

Think about the maximum possible loss your business could face in the event of a claim, and make sure you take legal fees and damages into consideration. You can choose from three levels of coverage – £1 million, £2 million, or up to £5 million.