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What Are The Advantages And Disadvantages Of Shop Insurance?

By Maria Hickey on November 19th, 2022

When it comes to insuring your business against the risks it faces daily, it makes sense to take out some essential coverage that your shop needs. However, many small business owners, such as solo business owners that plan to open a small shop and run it themselves, will wonder if they need to insure their shop fully.

It can pay to compare shop insurance with a leading business insurance specialist, such as Brisco Business. Doing so will eliminate the possibility of over-insuring your small shop business and paying higher premiums for the protection you don’t need.

There are many advantages to taking out shop insurance to protect your business. Still, you need to ensure that you pay the appropriate amount for your insurance or have coverage that your shop doesn’t need in your policy.

This guide will help explain shop insurance’s advantages and disadvantages and help you avoid over-insuring your business against risks that don’t apply to it.

Advantages of shop insurance

There is some business insurance coverage that is required for businesses. Still, many of them are optional yet can be valuable because they add an extra layer of protection to the security of your business. Shop insurance is an area that needs careful consideration because shops have many more risks associated with their operation than other small business setups.

For example, shop owners that employ staff are required by law to carry employer’s liability insurance. This insurance protects you should a staff member sustain an injury or illness while working for you.

However, employer’s liability insurance will protect your business after an employee leaves your service. Should an ex-employee develop a debilitating health condition linked to when they were working for you, they will be entitled to make a compensation claim. Employer’s liability insurance will help protect you under these circumstances.

Public liability insurance is another valuable option for shop owners. This insurance protects your interests if a customer or member of the public visiting your shop has an accident and sustains an injury, and makes a compensation claim. Public liability insurance will help cover the costs of any compensation payout you make to a claimant if their case is successful. It is a far better prospect to protect yourself with public liability insurance than paying any compensation claims out of your pocket, which can run into tens of thousands of pounds.

Invaluable shop insurance coverage

Another insurance that is considered essential by most shop owners is stock or inventory protection. Should your shop premises suffer a devastating fire or flood, it could wipe out your entire stock in one go.

If your shop is broken into and your stock gets stolen or vandalised, having stock insurance will be invaluable in helping you restock your shelves and start selling again.

There is also a risk to your property from the damage caused by thieves and vandals, such as your shop windows or doors getting smashed or damaged during a break-in. This is when shop-front and glass window protection can help with the costs of repairs and replacement to make your shop save once again.

It can help to inventory all your shop assets, including essential computer equipment, furniture, fixtures and fittings that could be at risk of being lost to fire, flood or burglary. Ask yourself if you could afford to replace these assets out of your own pocket. If you would struggle to replace these things, it can help to talk to our team at Brisco Business Insurance to arrange the most appropriate insurance coverage for your needs.

Compare shop insurance quotes

Shop owners need to look at the potential risks of their business to determine which insurance cover to take out and if the insurance protection benefits are worth more than the costs.

Insurance premiums may add to your business overheads each month or year, but their protective value will far outweigh the costs of paying for compensation claims out of your pocket.

To ensure you are not overpaying for your shop insurance coverage, you can compare shop insurance quotes quickly and efficiently using Brisco Business Insurance quote comparison services.

If you are planning to open your first shop and are unfamiliar with business insurance, Brisco will help you compare retail shop insurance to find you the right coverage to meet your needs and tailor-make a policy for you.

Disadvantages of shop insurance

One of the significant disadvantages of shop insurance policies is having to rake through the fine print to understand exactly what you are covered for. Insurance policies can be confusing, especially to a first-time business owner with little time to read the terms and conditions of their insurance coverage.

There is also a risk of over-insuring your new shop and paying for coverage you don’t need. We all know that small shop owners need to keep their overheads down as much as possible, so overinsuring your shop is an extra expense you can do without.

You may spot a tempting shop insurance deal online, but there may be many limitations to the coverage that makes it such a good deal. This means that you could be unaware that your insurance won’t cover some essential assets you assume are covered by your policy.

This is why shop owners should compare commercial shop insurance quotes with a reputable and experienced provider, such as Brisco Business Insurance. We work with the UK’s leading insurance providers and have helped arrange the right cover for thousands of small business owners.

How to compare shop insurance

Comparing shop insurance quotes can be frustrating and time-consuming when you face doing this alone. Small business owners can find the best deals on their insurance by working with a professional business insurance specialist, such as Brisco Business Insurance.

Our team of experienced business insurance brokers will help compare quotes from leading insurance providers and look at the small print to ensure that it meets your needs as a shop owner.

There can often be cases where an insurer offers a comprehensive business insurance package, but the details can be generic and not address the specific needs of a shop owner. The coverage may include the protection that would be useful for a plumber or electrician, but it wouldn’t necessarily apply to a retail shop environment.

Pre-made comprehensive business packages may include many more elements weighted towards other professions, such as professional indemnity insurance, which is excellent for a solicitor or business consultant. But not very useful for a shop owner running a convenience store or selling homewares and soft furnishings.


As a business owner running a retail shop, you should be careful about what you pay for when it comes to insuring your business. While it makes good business sense to insure your shop against the many risks it faces, you also need to ensure you are paying for only necessary coverage or not accidentally underinsuring your business.

Brisco is here to help. As a busy shop owner, we understand that you don’t have the time to read the small print and compare several insurance quotes. This is why we can save you time and money by doing all the legwork for you, just input your requirements in to our quote tool and we will present you with a number of quotation options.

Maria Hickey

For more than 20 years, Maria has worked in the insurance sector and has extensive underwriting and customer service expertise. Maria is an experienced Senior Underwriter with a particular specialism for shop, office and surgery related insurance.

All articles by Maria Hickey

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