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Shop Insurance FAQs

Plain talking Questions and Answers for our shop insurance

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Welcome to our questions and answers for our Retail and Shop Insurance. This is where you can find out about covers that are available as standard, covers that can be optionally added, and what you can do on our website.

This information is provided as a guide only, and if you have any doubts or questions, you can give our friendly team a ring on 08000 280 380. We’re open from 08:00 to 20:00 Monday to Thursday, and 08:00 to 18:30 on Friday.

Trade Direct Insurance do not offer advice relating to insurance, and you need to ensure that insurance you choose meets your demands and needs. Covers, limits and exclusions vary by insurer.


Q. What is Shop Insurance?

Q. Who is Shop Insurance designed for?

Q. What is Employers’ Liability insurance?

Q. Is Employers’ Liability insurance required by law?

Q. What is Public and Products Liability?

Q. What is Stock cover?

Q. What is Loss of Money cover?

Q. What is Business Interruption cover?

Q. What is Contents Insurance?

Q. What is Glass & Signage cover?

Q. What is Loss of Licence cover?

Q. What is Buildings cover?

Q. What is Goods In Transit cover?

Q. What is Legal Expenses cover?

Q. What is Personal Accident (Assault) cover?

Q. What is a Seasonal Increase?

Q. What is Chilled/ Frozen food cover?

Q. What is Employee theft cover?

Q. How can I pay for my policy?

Q. How will I get my documents?

Q. Do you insure shops in Northern Ireland?

Q. Do you insure shops in the Isle of Man?

Q. Do you insure shops in the Channel Islands?

Q. Can I save a quotation?

Q. How do I retrieve a quotation?

Q. How do I log-in?

Q. Who will my policy be with?

Q. What are Excesses?

Q. What is the Employers’ Liability Tracing Office (ELTO)?

Q. What is an Employer Reference Number?

Q. How do I make a claim?


Q. What is Shop Insurance?

A. . Shop insurance policies include a selection of carefully selected standard and optional covers designed to protect the key risks of a retail business. This includes your potential liabilities towards property and people (Public Liability, and Employers’ Liability), the items contained within the premises (Stock, and Contents), and your income if you’re unable to trade (Business Interruption). We’ll look at each of these in detail later.

Q. Who is Shop Insurance designed for?

A. Shops vary greatly in size and type, from small independent stores, to large multi-national chains. Our Shop Insurance comparison service is designed primarily for smaller, independent high street or shopping centre retail businesses that operate from commercial premises. If you have a larger business, have a hospitality business (e.g. pub, restaurant or hotel), or a sports or leisure facility (e.g. golf club), our sister company Kerry London should be able to offer you tailored policies.

Q. What is Employers’ Liability insurance?

A. Employers’ Liability insurance is designed to pay your legal liabilities should your employees be killed or injured while working for you in connection with your business, or contract a disease as a result of that work. The types of costs that this can cover include compensation for death, injury or illness, the employee’s costs and expenses, and your costs and expenses incurred in defending yourself, such as legal fees.

Employers’ Liability insurance is designed to meet the cost of compensation for your employees’ injuries or illness whether they are caused on or off site. However, any injuries and illness relating to motor accidents that occur while your employees are working for you may be covered separately by your motor insurance.”

Q. Is Employers’ Liability insurance required by law?

A. If you have employees, then Employers’ Liability insurance is a legal requirement. This is governed by The Employers’ Liability (Compulsory Insurance) Act 1969 in Great Britain, Northern Ireland, the Isle of Man and the Channel Islands.

Q. What is Public and Products Liability?

A. Public Liability insurance is designed to pay the legal costs and any compensation payments that your company could be liable for should you or one of your employees cause damage to property belonging to a member of the public, or injury to a person in connection with your business, or a member of the public is injured while on your premises. With members of the public and suppliers routinely entering your property, the potential for personal injury is real.

Your business may be held legally responsible for any injuries to people or damage to property caused by a faulty product, even if you did not manufacture the product. Products Liability is designed to cover the costs of compensation should you be found liable for supplying or manufacturing a faulty product.

Q. What is Stock cover?

A. Stock cover is designed to protect the items that you are selling from your retail premises in the event that they are stolen, damaged or destroyed. Your stock is the core of your business, so you should consider carefully it’s full replacement value. Some policies include an automatic seasonal increase that is usually a percentage of the sum insured, meaning that you are less likely to have to update your policy at, for example, Christmas. Stock cover is not the same as Contents cover. Please see “What is Contents Insurance”.

Q. What is Loss of Money cover?

A. Loss of Money cover, or Money cover, is designed to cover you for business related money that is stolen from your premises, when you’re carrying it to the bank, or from your home – before you’ve had the chance to bank it. Insurers will expect appropriate security measures to be in place.

Q. What is Business Interruption cover?

A. If your business is unable to trade for a period of time due to an insured event (e.g. a flood or fire), the loss of income may result in the end of the business. There are likely to be unavoidable costs while you’re not trading, or your existing costs/ overheads could be higher while your business recovers. Business Interruption cover is designed to cover these costs.

Q. What is Contents Insurance?

A. Contents insurance is designed to protect the items that belong to you, but that you are not selling. This could include, for example, tables, chairs, free-standing shelving, and cabinets etc. Contents cover is not the same as Stock cover, and does not include the building itself.

Q. What is Glass & Signage cover?

A. The glass of your premises, coupled with the signage, is a fundamental part of shop, and is subject to a number of risks, such as accidental damage, malicious damage and forcible entry. Glass cover, and in some instances additionally signage cover, is designed to repair or replace glass or signage that is damaged as part of an insurable event.

Q. What is Loss of Licence cover?

A. If your business includes the sale of alcohol, you’ll be required to have a licence to sell alcohol – whether this is for consumption on the premises (an “on-license”) or for consumption off the premises (an “off-license”). For a variety of reasons, licenses can be revoked or suspended, meaning that you’re not legally allowed to sell alcohol, and depending on the nature of your business, this could have a significant impact on your income/ profit, and consequently the value of your business.

Should your license be revoked or suspended, through no fault of your own, Loss of License insurance is designed to cover the resulting loss of income, a reduction in the value of your business, as well as a range of other associated costs.

Q. What is Buildings cover?

A. Buildings cover is designed to insure the building from which you trade, if the premises are owned by you. If you rent your premises from a landlord, it is likely that they will have landlords building insurance.

Q. What is Goods In Transit cover?

A. Depending on the nature of your shop or business, there’s a good chance that you’ll need to move property that is insured by you under your shop insurance policy between locations. Goods In Transit cover is designed to provide cover for such items while they are being transported in vehicles that you own, or have leased. You’ll be expected to maintain appropriate security measures for these items, and conditions regarding unattended vehicles almost always apply.

Q. What is Legal Expenses cover?

A. There’s a wide variety of reasons why legal action could be taken against you or your business, such as employment related claims, data protection, breach of contract or VAT disputes. Legal Expenses cover is designed to protect your business from the costs of such legal actions. There is usually a limit per claim, and an overall limit per period of insurance.

Q. What is Personal Accident (Assault) cover?

A. Personal Accident cover is a collective term that includes a wide range of potential covers, that can vary significantly between insurers, and by policy type. With the policies available via our Shop Insurance comparison service, Personal Accident (Assault) is designed to provide compensation if you are injured during the course of your work as the result of a robbery or attempted robbery.

Q. What is a Seasonal Increase?

A. All the policies on our panel include Stock cover, which is designed to provide a set amount of cover for your Stock. However the majority of retailers will have seasonal increases in Stock, for example during the Christmas period. The last thing you want to be doing during a busy period is updating your insurance policy, so a Seasonal Increase automatically uplifts the sum insured for stock by a set percentage, so you have one less thing to think about. If you purchase a policy that has a seasonal increase, you should still ensure that the uplifted amount is sufficient for your particular needs.

Q. What is Chilled/ Frozen Food cover?

A. If you store stock in a freezer, refrigerator, or cold room and this stock is damaged due to a change the temperature at which it is stored, Chilled/ Frozen Food cover is designed to reimburse you for the cost of this damaged stock. Most insurers have exclusions, such as where the electricity supply to the property is terminated/ with-held, or where the loss is caused by neglect or mis-use.

Q. What is Employee theft cover?

A. In most shops, employees will routinely be handling money and/ or property that belongs to you or your business. While it’s not pleasant to think of people you’ve employed, and may know well, stealing from you, regrettably it happens for a variety of reasons. If you have a permanently employed member of staff, who is under a contract of employment or apprenticeship, Employee Theft cover is designed to cover the theft of money, or property for which you are legally responsible. This cover is sometimes also known as Fidelity or Fidelity Guarantee.

Q. How can I pay for my policy?

A. You have the option of paying for your policy in full, or over a series of instalments. You can pay in full using a debit or credit card. If you choose to pay by instalments, we will take a deposit, followed by 10 further payments via Direct Debit. Details of how we administer Direct Debit payments may be found in our Information on Credit document. Trade Direct is a credit broker, not a lender.

Q. How will I get my documents?

A. During the online quote & buy journey, you will be able to view and download certain key documents, prior to purchasing your policy. Once you have completed your purchase, your policy documents will be emailed to you no later than the next business day.

Q. Do you insure shops in Northern Ireland?

A. Yes, we can provide you with quotes for shops located in Northern Ireland.

Q. Do you insure shops in the Isle of Man?

A. Yes, we can provide you with quotes for shops located in the Isle of Man.

Q. Do you insure shops in the Channel Islands?

A. Yes, we can provide you with quotes for shops located in the Channel Islands.

Q. Can I save a quotation?

A. When you get a quotation online, we will automatically send you a confirmation email, and in this email there is a link that allows you to retrieve your quote when you’re ready to purchase it.

Q. How do I retrieve a quotation?

A. When you get a quotation online, we will automatically send you a quote confirmation email. In this email there is a link that allows you to retrieve your quote when you’re ready to purchase it. You’ll just need to enter the postcode for the property you’re insuring.

Q. How do I log-in?

A. When you get a quotation online, we will automatically send you a confirmation email, and in this email there is a link that allows you to retrieve your quote when you’re ready to purchase it. You’ll need the postcode of the business that you are trading from.

Q. Who will provide my policy?

A. We work with a panel of insurers, all of whom are well known names in UK insurance. During our online Quote & Buy journey, you will be able to select your preferred policy, and the insurer will be clearly shown.

Q. What are Excesses?

A. An Excess is an amount that will be deducted from any sum of money paid for a valid claim. Some Excesses are mandatory, which is to say that they are a condition of a policy. Some policies also offer voluntary Excesses, where you can choose an Excess, and by doing so, the cost of your policy may be reduced. When choosing a higher voluntary Excess, you need to be comfortable of the impact a reduced sum payable would have on you financially. Different Excesses can apply to different sections of a single policy, and they are cumulative. So, if you had multiple Excesses on your policy, and had a valid claim against multiple sections of your policy, the Excesses would be added up, and your total amount payable reduced by the sum of the applicable Excesses.

Q. What is the Employers’ Liability Tracing Office (ELTO)?

A. The Employers’ Liability Tracing Office (ELTO) is an independent organisation that was set up by the insurance industry in order to make it easier for employees to trace a former employer, or employers insurance policy, should they need to make a claim against their employer’s policy. As diseases can take some time to become apparent, or to be diagnosed, without ELTO it was historically difficult for employees to find a former employer’s Employers’ Liability insurer. Now, whenever an insurance policy is sold that includes Employers’ Liability insurance, the insurer is required to collect information from the customer, and to then supply this information to the Employers’ Liability Tracing Office.

Q. What is an Employer Reference Number?

A. Every business that is registered with HM Revenue and Customs is issued with an Employer Reference Number (ERN) that is unique to that business. From time to time, you’ll also see it referred to as an Employer PAYE Reference - they’re the same thing. Your ERN is sent to the ELTO as a key piece of information.

Q. How do I make a claim?

A. Please take a look at our Making a Claim page.

Full details of our Terms & Conditions, Limits, Excesses and Policy Exclusions for each of the insurers on our Shop Insurance panel can be found in our Quote & Buy journey. Trade Direct Insurance do not offer advice relating to insurance, and you need to ensure that insurance you choose meets your demands and needs. Covers, limits and exclusions vary by insurer.


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