Home » Shop Insurance » Retail Store Insurance

Retail Store Insurance

Compare Retail Store Insurance Quotes

  • Protects your shop from risks like fire or theft
  • Covers stock, staff, and customer accidents
  • Fast & simple – fill out one easy form
  • Compare quotes – save time and money
Start a new quote
Men Talking inside a Grocery Store

Search, Compare and Save on Retail Shop Insurance

h

Enter your details

It takes only 2 minutes to complete the quotation form

Compare your quotes

Let the specialists compare policies for you over the phone

Start saving

Choose and buy the insurance policy that suits your needs

QuoteRadar.co.uk
is dedicated to helping you find an affordable Retail Store Insurance deal with no hassle

Quick Links ▼

What Is Retail Store Insurance?

Retail store insurance covers shops and online sellers against everyday risks in terms of money. Accidents with customers, accidents with employees, lost stock, property damage, or being sued for selling a faulty product are all the risks you may encounter.

Running a retail business in the UK – which could be a local boutique, a high street shop, or home-based retailers – has daily risks that are rarely predictable. Grounded in accidents of customers and employee injuries to stolen stock or cyberattacks, even the smallest incident can paralyse. That is why proper retail shop insurance is necessary.

The Bureau of Labour Statistics (BLS) saw the workers’ injury and illness rate in retail trade at approximately 3 cases per 100 full-time workers, out of which 1.9 cases were days away from work, with job restriction or transfer. Recent years saw the number of fatalities reported reach 308, and updated with the latest NAICS codes.

For instance, you might own a clothing shop. One day, a customer trips over an unwieldy rug in the fitting room, falls, and is injured. They chose to sue you legally for medical expenses related to their business. Legally speaking, without insurance, you could be left paying thousands of pounds in compensation. But with the right kind of retail store insurance, all those costs are covered.

Retail store insurance provides you peace of mind when operating your business safely and sustainably.

Get Quotes

Why Do I Need Retail Store Insurance?

According to the U.S Small Business Administration, business insurance protects companies against losses resulting from different risks, such as property damage, legal liability and employee injuries.

Whether you are a retailer that chooses to sell in-store or supply to the markets, you need the best protection for your retail business. Compare cheap retail store insurance and find the best quote for your shop to get the best protection.

Such an insurance not only covers physical damages but also provides for loss of income incurred when your premises are not utilised. Common risk scenarios include:

  1. Fire or Flood Damage: Stock, equipment and fittings may be destroyed by adverse weather events or accidentally by fire, consequently closing down the shop until repairs are made. Insurance serves to ensure repair costs and business disruption losses.
  2. Theft or Vandalism: Retailers are plagued with shoplifting, employee theft, and possible damage to store fronts with vandalism. Such losses can cause inventory shrinkage and costly repairs.
  3. Cyber Attacks: Retailers, in their use of digital payments, as well as online sales, are susceptible to cyber vulnerability, such as data breaches or ransomware. If successful, an attack can lead to compromising customers’ information and shutting operations down.
  4. Employee Injuries: Staff injuries may result from slips, trips, or the wrong handling of equipment. Employers may be subject to liability claims, medical costs, or legal costs that are not sufficiently covered.
  5. Terrorism-Related Losses: On some occasions, retail shops may be damaged through acts of terrorism as a result of property damage or business interruption. Some are against terrorism cover, but sometimes it can be added as an extra altogether, worth asking when comparing quotes.
Woman choosing perfume in cosmetics store

What Types of Retail Shops Are Covered?

Retail store insurance is flexible and designed to support a wide range of shop types, whether you’re trading from a high street location, a retail park, or online. Commonly covered shops include:
Get Quotes

What Does Retail Store Insurance Cover?

Insurance for a retail store doesn’t lie in one policy, but is a combination of various insurance options. Each of the types of coverage focuses on different aspects of your business, including your customers, your employees, inventory, property, and revenue. Let’s investigate the primary insurance policies that are necessary for any shop and prove their importance through real examples.

1

Public Liability Insurance

Accidental Injury & Property Damage

It protects you if the customer, delivery person or visitor suffers an injury or damage to the property when they are in your shop. It shields you against such costs as lawyers’ fees, health care charges, and compensation, if you are found to be responsible. 

Shops are busy places. Shoppers wander around, pick things up, try on samples, or switch clothes. Accidents can happen regardless of how careful you are. With public liability, you can rest assured that your business is safe from legal and financial hazards that can suddenly befall your business.

2

Employers’ Liability Insurance

Employee Illness & Injury Compensation

Employers' liability insurance becomes relevant if some of your employees get injured or fall sick whilst carrying out their job responsibilities. It offers financial aid for legal costs and compensation if an employee raises a concern. This insurance is required by law in the UK, whether workers are full-time, part-time, on contract, or volunteers.

Consider a situation where you own a bakery. A worker falls on a wet floor while cleaning and hurts their back. If the employer has liability insurance, it pays for treatment and assists with finances. Absence of this insurance may have you paying up to £2,500 daily to be penalised, even though you would still be held responsible for all the related costs.

This insurance also applies to employees who become afflicted with chronic illness as a result of their work, such as repetitive strain injury from such tasks as packaging or health issues from chemicals.

3

Professional Indemnity Insurance

Client Claims & Negligence Protection

Professional indemnity insurance helps retail shop owners in case they give wrong advice or make an error of judgment that results in customers losing money. Such insurance is important if your shop provides services such as repairs, styling, and product advice. 

For instance, if a customer sues you claiming that your advice caused damage or loss, this type of insurance can cover legal costs and settlements. It earns trust and demonstrates to your shop’s customers that you treat the issue of responsibility seriously. Even small shops will find this cover useful, and particularly if they are handling customer complaints, service errors, or matters to do with professional advice.

4

Product Liability Insurance

Defective Products & Damage Claims

If you sell a product that causes property damage or injury to a person, this coverage will pay for any legal fees and compensation. Although you may not have been the manufacturer, you can still be held responsible for any problems that come along.

Once a product is sold from your store, some situations are out of your hands. You own a homeware store where the electric kettles you sell are obtained from a supplier. A customer acquires a kettle that overheats and causes a minor kitchen fire two weeks after purchase, so the customer files a lawsuit against your retail business. Because you sold the kettle, it is your legal duty, regardless of whether you manufactured it or not.

Through product liability insurance, you are protected from lawsuits resulting from issues of quality, wrong labelling, or use beyond what you had warned.

5

Buildings Insurance

Structure Damage & Repairs

This will cover your owned shop’s structure, the walls, roof, floors, and permanent fittings, if a storm damages the building or other issues occur. Consider a small bookshop that is located in the centre of the town. Strong winds caused by the storm tore the roof apart, and the shopfront windows were shattered. A part of the flooring of the building is soaked and ruined because of the leaks in the building’s roof.

Your policies for buildings insurance would include:

  • Roof and window repairs
  • Internal structural damage
  • Security measures till the time the damage is repaired
6

Contents Insurance

Fixtures, Fittings & Equipment Cover

Contents insurance covers the listed items like the tools, furniture, fixtures and equipment required for operating your business in your shop. In your hair salon, crucial items such as hair dryers, straighteners, styling units, registers, and mirrors are stored indoors. At night, there is a break-in that leads to a number of your items being stolen or vandalised.

Your contents insurance would cover:

  • Payment of the value of any lost or damaged tools, machines or equipment
  • Access to loan equipment or similar items pending claims (if included in the policy).
  • Charges for repair or replacement of fixtures such as mirrors or shelving.
  • Content insurance is essential for businesses like salons, electronic retailers, home décor shops and places with high-value fixtures or fittings.
7

Stock Insurance

Inventory Loss Protection

Stock insurance protects what you have in stock, whether on the shop floor, in a backroom, or nearby in a stockroom. In the event your stock gets lost, damaged or stolen, your insurance will compensate for replacement. For example, as the owner of a boutique, you have just introduced your winter inventory. A couple of days after you stock up, a blown radiator spills and floods the stockroom, ruining £5,000 of your clothes.

Your stock insurance would:

  • Pay the total losses for damaged goods.
  • Help you reorder replacements quickly.
  • Make sure you stop significant drops in sales and customer satisfaction.
Without stock insurance, you’ll have to pay the entire cost of replacement and repair. Such an event might be financially devastating, especially during peak times like Christmas sales or a summer sale.
8

Business Interruption Insurance

Shop Closure & Income Loss

Business interruption insurance (also called BI cover) can help when you need to temporarily close your shop due to an insured incident: fire, flood, or severe weather. It pays for the revenue that you are losing while your business is shut down and also pays for a limited number of necessary expenditures.

You run a pet supplies store. Your shop gets burnt down due to a fire at a nearby unit, and you will not be able to carry on your business until a complete refurbishment is done. It is going to take your shop four weeks to get fixed up, so you cannot run your business if it is being repaired.

Business interruption insurance would help you to:

  • Compensate for your business’s usual receipt of money during that period
  • Getting the money to pay for the necessities, such as rent and utility bills, that have to be fulfilled during the closure.
Without BI coverage, you won’t benefit from being compensated for the sales and the value of your customers’ revenue you’ve lost. Small businesses that rely on a certain much-needed weekly revenue will also face harsh situations during this time.
9

Legal Expenses Insurance

Legal Advice & Defence Costs

It covers all legal fee payments made against business claims. It comes as part of the package policy normally, but you can purchase it as a standalone insurance.

You fire an employee for multiple cases of lateness. Eventually, they file a complaint for unfair dismissal and initiate a claim at the employment tribunal. Even if you follow the right processes, you’ll need to defend yourself if a case goes to court.

Your policy might assist you with paying for things, including:

  • Solicitor’s advice
  • Legal defence costs
  • Fee(s) of the law (tribunal or court expenses if the case goes to this stage)

Optional Add-Ons For Retail Shop Insurance

In addition to typical retail shop insurance, insurers often offer additional choices to match the coverage to the peculiarities of each specific store. These extras are not integrated into every retail shop policy, but you can use them to strengthen the protection in those locations that are especially risky for your business. What add-ons you specifically require mainly depends on your products, operations, and the layout of your store.

Here are the most popular retail store insurance add-ons alongside real-world applications that will help you appreciate their value.

Goods In Transit Insurance

Provides coverage for stock in transit across premises, like from one shop to another, storage to the shop or during the receipt of shipments. A furniture retailer which often moves expensive chairs between its two warehouse locations is an excellent candidate for purchasing a stock transit policy. Irreparable damage occurred to the goods because a delivery van was in an accident. Since the owner was insured on goods in transit, the insurance company paid for the losses sustained. If the extension was not triggered, loss would not qualify for compensation under conventional insurance.

Employee Dishonesty (Fidelity Guarantee)

Prevents employee theft of stock or cash from your business. A small business in the electronics industry identified a continuing deficit of cash on hand and loss of goods. A long-term employee was to blame for the theft of goods in the shop, recorded on cameras. The staff member was fired, and the insurance company paid out for stolen stock under the employee dishonesty cover.

Seasonal Stock Increase

Offers added protection for additional stock in the course of seasonal holidays and large shopping events such as Christmas or Black Friday. The gift shop increased its stock by 50% before the holiday season. A sudden downpour resulted in a leaky roof, and the store’s seasonal stock got ruined. It was because of the seasonal increase feature that the shop’s inventory expansion was appropriately covered. If the seasonal increment had not been included, the payout by the insurance would have been restricted to the normal stock value.

Deterioration of Stock

It helps ensure that while the cooling system is broken or there is a loss of electricity, refrigerated stock is not ruined. At night, a small deli’s fridge stopped working and, consequently, meats, cheeses and dairy products spoiled. Since the company had protection against stock spoilage, the insurer paid out, reimbursing all the spoiled food. Due to the payout, they could easily order new inventory without having to incur service delays.

Money Cover

This provides security for cash in the hands at any given period, including storage and delivery. A newsagent delivering money to the bank was robbed. With money cover, the shop owner got reimbursed for the stolen cash so they could reclaim their finances without unnecessary delay.

Alcohol Cover

If your retail shop either sells or serves alcohol then you must be in possession of a valid alcohol licence. Under this licence, you are at liberty to sell such drinks such as wine, beer and spirits. If, for whatever reason, this licence is withdrawn or not renewed, your business will feel it. You may lose your customers and even be shut down on your shop. That’s why a lot of shop owners prefer Loss of Licence Cover. It will benefit your business financially in case you lose your alcohol licence because of no fault of yours.

Group Personal Accident Cover

Another type of insurance is Group Personal Accident Cover. This cover will then protect you and your employees (16-65 years) if someone gets injured or very ill. It is possible to have accidents when running a show when: someone may slip, or fall or get hurt. Should that occur, the coverage offers financial assistance for medical expenses or lost wages. It guarantees that your team remains safe and that your business is never stagnant, even in the bad times. An abundance of retail businesses include this in their insurance plan for increased safety and peace of mind.

How Much Does Optional Add-ons for Retail Store Insurance Cost?

In the UK, the retail store insurance quote depends on your business size, type, and coverage needed. Smaller retailers may be charged every month from £10 to £20, with large companies having larger teams and more exorbitant products to pay more as a norm. Most retailers usually budget between £150 and £500 per year towards standard insurance. Here’s what affects the price:
Z

Business Size And Turnover

Companies that sell more and hire more workers are normally expected to pay more for insurance. The higher the turnover, the higher the perceived risk, and the insurers charge more. For example, if one business makes £500,000 per year, the cost of insurance will be higher than in a company that makes £50,000 per year.
Z

Number Of Employees

Regardless of whether your staff is permanent or only temporary, employers’ liability cover is legally required. The insurance fees you pay usually increase when your workforce increases. This is because more employees increase the risk of the chance of an employee getting injured at work and claiming compensation.
Z

Type And Value of Stock

Expensive or vulnerable items are often the focus of dealers, who discover that their premiums are above average concerning insurance. Stationery or clothing stores pay lower insurance premiums compared to a jewellery or electronics store. The more valuable your merchandise, the bigger the payout that your insurer would have to make for theft or loss.
Z

Location Of Your Shop

The location of your shop influences the cost of the insurance. Shopkeepers in crowded metropolitan districts or high-crime, high-risk neighbourhoods are inclined to pay more for coverage because they are more susceptible to stolen merchandise, vandalism, and flooding. Shops in quiet towns or places with lower crime rates are eligible for lower premiums.
Z

Level Of Coverage You Choose

The more features you add to your policy, the more it will cost you. Choosing public liability only, your insurance is not likely to be overly expensive. However, adding liabilities for employers, property damages, stock coverage, and business interruptions to your policy will increase your total cost.
Z

Claims History

Insurance premiums might go up simply because of your previous claims, especially in cases involving large amounts or repeated incidents. An insurer tends to consider that companies that have filed claims in the past are riskier. A good claims record can even help you get a lower price when renewing your policy.
Z

Optional Add-Ons

Optional extras such as glass cover, increased seasonal stocks, and legal expenses cover extra costs, and they increase your premium. With these extras, your business is now safer, but naturally, the cost will also go up. Make sure to evaluate whether you need the add-on or if it is included in your basic policy.
Z

Excess Amount You Select

It is the number that you are responsible for paying before your policy kicks in, once there is a claim. More voluntary excess may help reduce your standard premium costs. Make sure that you can take care of the surplus amount by yourself if a claim occurs.

How To Get Cheaper Retail Store Insurance?

Running a shop comes with a lot of expenses, and insurance is one of them. While it’s important to stay fully protected, there are smart ways to reduce your insurance costs without cutting corners on coverage. Below are some practical tips that can help you get cheaper retail store insurance in the UK:

Compare Multiple Insurance Quotes

One of the easiest ways to save money is by getting quotes from different insurance companies before you decide. Comparison websites or insurance brokers can help speed up this process. Always compare not just the cost, but what’s actually included in the cover.

Bundle Your Insurance Policies

Most insurers offer a discount when you buy more than one type of insurance in a package. This is often cheaper and easier to manage. It also reduces the chances of missing important coverage that your business might need.

Increase Your Voluntary Excess

The “excess” is the amount you agree to pay yourself if you make a claim. If you choose a higher voluntary excess, the insurer takes on less risk and will usually offer you a lower monthly premium.

Improve Security and Safety Measures

Insurers reward shops that take steps to reduce risks. Installing CCTV cameras, burglar alarms, secure locks, and fire extinguishers shows you take safety seriously. This can lead to lower premiums. Some insurers may even give discounts for having monitored alarm systems or modern fire safety setups.

Keep A Clean Claims History

If you haven’t made any insurance claims in the past few years, insurers see you as a low-risk customer. This usually means you get better prices. To maintain a clean record, train your staff well, carry out safety checks, and deal with small problems before they become big claims. Avoid claiming for very small incidents if possible, as frequent small claims can raise your future premiums.

Join A Trade Association Or Business Group

Some business associations offer their members access to group insurance schemes at lower prices. This works like a bulk discount. Even if you don’t buy insurance directly through the group, being a member can sometimes make you eligible for better rates or advice. It’s also a great way to stay informed about industry standards and tips for managing business risks.

Review Your Policy Annually

Don’t let your insurance auto-renew without checking if it still suits your business. Your shop might have grown or changed over the years. Maybe you’ve moved, hired staff, or added stock. Reviewing your cover each year helps you avoid paying for things you no longer need—and ensures you’re properly protected for what matters now.

Small Vs Big Retail Shops Insurance Cost

Smaller shops tend to find their insurance premiums are usually between £10–£15 a month, but larger operations could easily be paying deathly sums in comparison. Retail insurance provided for a business will be anywhere between £10.36 and £34.16 per month. All these factors, your shop’s dimensions, sales figures, employee count, geography and insurance levels, play a role.

For example, there is a tiny outlet of a shop, employing one person and with £50,000 yearly sales, which could cost the supplier £10 per month in insurance, while a larger outlet, with two or three employees and turnover from £100,000 to £500,000, could pay £22–£34 every month. You shouldn’t be afraid to ask for quotes from various providers to find the best price.

Get Quotes
Retail Store Insurance

What Does Retail Store Insurance Not Cover?

Retail store insurance does a lot to secure your business from several threats, but not from all. It is important not to be taken by surprise when filing a claim; knowing about exclusions may assist you. Common exceptions to shop insurance policies include the following:

ExclusionWhat It Means
Wear and TearDamage that happens slowly over time, like old wiring, faded paint, or broken equipment, is not covered. Insurance is for sudden, unexpected events, not routine maintenance.
Deliberate or Illegal ActsIf damage or loss is caused on purpose or due to illegal activities (by the owner or staff), the insurance won't pay.
War or TerrorismLosses from war, terrorism, nuclear events, or civil unrest are usually excluded unless special cover is added.
High-Risk Business TypesIf you sell restricted or dangerous items (like weapons or chemicals), they may not be covered under a standard policy.
Flooding in High-Risk AreasProperties in known flood zones may not automatically have flood cover unless added separately.
Negligence or MisuseClaims caused by poor handling, lack of care, or ignoring safety rules may be rejected.
Unreported ChangesIf your business changes significantly (like adding new services or moving premises) and you don’t inform the insurer, claims might not be valid.
Product RecallsInsurance usually won’t pay for the cost of recalling faulty products unless you’ve added specific product recall cover.
Casual Clothing Store

Is There Coverage For Rented Shops?

Even if you are renting out your shop premises, the majority of retail insurance plans will still be able to provide for you. However, it’s important to understand that the building itself is usually the responsibility of the landlord and is covered under their landlord insurance.

As a tenant, your retail insurance still has to include coverage of your contents, stock, public liability, business interruption, etc. Make sure to confirm with your insurer whether your policy fits your lease requirements.

Get Quotes

Frequently Asked Questions

My shop is in a high flood-risk area. Can I get shop insurance?

Having a shop in a high flood risk area means you will have to factor in the possible effects this could have on your business and building.
Most insurance providers increase the premium in such a situation. Therefore, take your time and begin to shop around to get the best bargain.

My shop’s plexiglass front and door were accidentally broken by a third party. Am I Covered?

A glass cover is usually part of a shop’s standard policy. But you should include the shopfront cover in your policy, in case your landlord holds you liable for the damage. If you have a glass-intensive window display or the shop front is completely made of glass, then ensure that you are documented correctly.

Make sure you isolate the documents and policy details for specific glass covers carefully. You should know the cover you have because insurers have varying limits for shop front cover. The service provides 24 hour glass replacement service which could repair windows, doors or partitions once you have selected to insure your contents.

Does shop insurance cover ATMs installed on my premises?

Shop insurance covers are extended to Automated Teller Machines (ATMs) installed on or within your premises. However, it’s essential to inform your insurer about the presence of an ATM, as it may increase the risk profile of your business and affect your premium.

Is my online stock covered under my shop insurance policy?

If you run a business that has physical stores in addition to online stores, then you can include the online stock in your shop insurance. This involves storage and in transit protection. It’s crucial to disclose your online operations to your insurer to ensure comprehensive coverage.

Is pest damage covered under shop insurance policies?

A majority of shop insurance policies do not cover damages caused by pests, such as rodents or insects. Preventive measures and routine maintenance are of paramount importance in reducing this risk since pest infestations are usually a maintenance problem that insurance is not willing to cover.

Does shop insurance cover equipment breakdowns like tills or card machines?

Some shop insurance policies include equipment breakdown cover, which can help to pay for repairing or replacing essential equipment, such as tills, card machines and refrigeration units if they become damaged as a result of mechanical or electrical failure.

What does retail store insurance cover?

The policy typically covers what your shop owns and owes. Some key aspects of shop insurance include public liability, employers’ liability, protection for your business stock and gadgets, premises insurance for your owned buildings, and business interruption insurance. Coverage for legal expenses can sometimes be included or optional with retail store insurance plans.

Is retail store insurance mandatory in the UK?

There is no requirement under law in the UK to buy shop insurance as a bundled package. However, some shop insurance in the UK is mandatory by law. Employers’ liability insurance is a compulsory cover if you hire staff in your business.

What is product liability insurance?

Product liability insurance helps you if a customer is injured or loses their property due to a product sold by your business. For example, when a client buys a lamp in your shop and the lamp causes a fire in the house, the client can make a claim from your business. Product liability insurance would cover the legal fees, as well as compensation in the wake of such a claim. If you’re in a position of selling goods, especially items like children’s toys, electronics, yummy foods, or cosmetics, having product liability insurance is paramount.

Will my insurance cover stolen or damaged stock?

Stock insurance, also known as contents insurance, will cover you in such situations. Contents insurance, for instance, will cover the replacement cost if a burglar breaks in and steals £ 1,000 worth of stock.

For instance, if a burst pipe damages our garments, stock insurance will pay to replace them. Remember that stock/contents cover selected and loss due to the cause being covered is applicable only in this coverage. Smaller shoplifted items or other typical claims are sometimes excluded or will take a higher excess payment; always check your policy specifics regarding those.

What happens if I make a claim?

If you experience such an insured loss as a break-in, fire, or injury claim, notify your insurer right away. Online or telephone claims submission is, therefore, the usual way insurance providers adopt it. Give the insurer facts on what took place and proof of the damage (receipts, photos, police statements, etc.), along with documentation of ownership and the item’s value (stock registers, invoices, etc.).

The insurer will review your claim and may even hire a loss adjuster to make a review. If your claim fee is accepted, the insurer will be responsible for covering it by paying for repairs, replacements, or settlements under policy terms. All policies will usually have 24-hour emergency services for claims. Prompt honesty and contacting the parties immediately are essential for your claim.

Related insurance