Public liability insurance for fashion business

In case your fashion business causes 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 business
• an injury or illness caused by your business activities or products
• accidental damage or injuries caused by your employees

For example:

• while leaving your premises, a customer trips over a loose floor tile and fractures their knee
• a customer injures their hand on a faulty zipper on one of your products, and claims for compensation

**If you do employ anyone, you’re usually required by law to have employers’ liability insurance too.**

Read more about public liability insurance

Employers’ liability insurance

In case anyone gets ill or injured while working for your clothes 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 cleaning at the end of a shift, your summer temp catches her hand on a faulty changing room door – she needs stitches and time off work
• your employee trips and breaks his ankle while carrying a crate to the storage room

Building insurance

In case something happens to your business 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 shop front windows are badly damaged during an attempted break-in, and need replacing
• a burst pipe in the property next door causes water damage to your internal doors and walls

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 buildings insurance

Contents insurance

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

What’s typically covered by contents insurance?

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

For example:

• your laptop and phone are stolen during a break-in
• the furniture you’ve ordered for your new waiting area is damaged in a fire, and needs replacing

Read more about contents insurance

Stock insurance

In case something happens to your stored clothing stock, and other items.

What’s typically covered by stock insurance?

• loss, damage, or theft of things like stored clothing items, sellable products, and other materials you use to stock your fashion business

For example:

• you close your business for Christmas and a fire damages all of your new season stock
• someone breaks into your shop and steals a large quantity of stock

Read more about stock insurance

Legal expenses insurance

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

What’s typically covered by legal expenses insurance?

• legal costs attributed to your shop, retail, or clothing 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 brand’s reputation

For example:

• you incur legal costs as a result of a shareholders’ disagreement
• a competitor sues you for defamation after an employee posts about them on social media, and you need to hire legal support

Read more about legal expenses insurance

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:

• you suffer a head injury while on holiday, and need ongoing hospital treatment
• your business partner trips and falls while meeting a new designer, breaking their knee

Read more about personal accident insurance

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 clothing shop 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 photography insurance?

Do I need cover for other types of work?

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

• Web designer insurance
• Interior design insurance
• Garden design insurance
• Videographer insurance
• Cycle shop insurance
• Shoe shop insurance
• Coffee shop insurance
• Off licence insurance

Other types of insurance

• Limited company insurance
• Self-employed insurance
• Freelance insurance
• Sole trader insurance
• Contractors 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.