Shop Insurance

Why is Shop Insurance Required?

Small and medium-sized shops operate on daily profits, unlike large businesses with bigger financial cushions. A sudden incident like a fire, theft, or natural disaster can cause major financial losses that are hard to recover from.

This is where Shop Insurance comes in. It provides financial security so you don’t have to bear the burden alone when unexpected events strike. With the right coverage, you can keep your business running smoothly, no matter what comes your way.

Who needs a Shopkeeper Insurance Policy?

Many shop owners are unsure whether they need shop insurance. To clarify, here’s who should consider getting covered:

• Independent Shop Owners – If your shop is your primary source of income, any unexpected damage or loss could directly impact your livelihood. This policy ensures you're prepared for unforeseen events.
• Family Business Owners – If you run a family-owned shop selling clothes, footwear, furniture, stationery, or similar products, insuring your business can protect your financial interests.
• Shop Owners in Prime Locations – Shops in high-footfall areas or busy markets are more exposed to risks like theft, vandalism, or fire. Insurance helps protect your shop from these threats.
• High-Risk Businesses – Some businesses face greater risks due to the nature of their operations. For example, an electronics shop may be more exposed to fire. If your business falls into a high-risk category, having insurance is essential to protect against potential losses.
• Owners of Multiple Shops – More shops mean higher exposure to risks. If you own multiple shops, getting insurance for each one ensures financial protection across all your locations.

Key Features & Benefits of Shop Insurance

A shopkeeper insurance policy offers several essential benefits, including:

• Property Protection – The policy covers loss or damage caused because of fire, natural disasters, explosions, riots, burglary and housebreaking.
• Liability Coverage – It provides protection against third-party legal liabilities, including bodily injuries and property damage. Some policies also cover employee compensation as per the Workmen Compensation Act, 1923.
• Money Protection – The policy safeguards cash in transit between the shop and the bank, as well as money kept in the shop’s safe or counter, against theft, robbery and other covered unfortunate events.
• Affordable & Comprehensive – The policy offers extensive coverage at budget-friendly premiums, ensuring complete financial security without a heavy cost.

What is Covered Under Shop Insurance?

The following are the shop and small business insurance plans that are available in India:

• Fire Cover
• Aircraft damage Cover
• Implosion/ lightning explosion
• Malicious Act, Riot and Strike Cover
• Cyclones, storms, floods, tornados, typhoons and tempest hurricane cover
• Machinery breakdown cover
• Burglary cover
• Infidelity cover
• Personal accident cover

Add-ons Under Shopkeeper Insurance

Apart from the above-mentioned covers, a shop insurance policy also provides the following covers as an add-on or rider by paying extra premium:

• Earthquake
• Escalation
• Terrorism
• Loss of rent
• Extra costs for debris removal beyond 1% of the claim amount

What is Not Covered in a Shopkeeper Insurance Policy?

The common exclusions under a shopkeeper insurance policy are as follows:

Loss, damage, and destruction caused due to:

• War or warlike operations
• Losses of earnings
• Contamination or pollution
• Contaminations caused due to radioactivity, waste, or nuclear fuels, ionizing radiations

Burglary caused due to:

• Explosions or fire
• Member or inmates of the household of the insured or insured's business staff

Loss, damage or destruction of electronic equipment caused due to:

• Wear and tear
• Defects or faults existing during the commencement of insurance in the knowledge of the insured or his/her representative.

Types of Shops Covered Under Shop Insurance

Here is a list of shops that are covered under shop insurance plans:

• Mobile and Other Electronics – It includes shops that are involved in the sale of mobile phones, electronics and accessories. 
• Personal Lifestyle and Fitness – It includes all shops and complexes involved in personal and lifestyle sectors, such as malls, spas, clothes showrooms, gyms, etc. 
• Grocery and General Stores – It includes all the general stores, grocery/ kirana stores in your society or neighbourhood as well as the budget-friendly supermarkets that sell a variety of groceries and other products.
• Manufacturing and Processing – It includes all businesses involved in any kind of manufacturing and processing units, such as factories and mills, that manufacture final products for business. 
• Food and Eatables – It includes all shops and businesses that sell food or eatables, cafes, restaurants, food trucks, etc. 
• Home Repair Services – It includes all kinds of shops or businesses that are involved in repair services. It comprises of the carpenter shop, motor garages, plumber shop, etc. 
• Healthcare – It includes all businesses and shops that are involved in providing healthcare services, such as hospitals, diagnostic centres, clinics, pharmacies, etc. 

How to Compare and Select the Shop Insurance Online?

With a wide range of shop insurance plans available online, finding the right one can feel overwhelming. However, by comparing policies on a trusted insurance provider or broker’s website like Policybazaar for Business , you can quickly find a plan that fulfils your needs. Just enter your requirements and the platform will generate tailored options, making your decision simple and hassle-free.

Shop Insurance Premium Calculator

Along with all the online features provided by insurance companies to make their customer's buying experience smooth, they also offer an online tool that helps their customers calculate an estimated premium amount for their desired shop insurance policy. You can look for it online on the insurer's website and calculate the premium amount after selecting the kind of coverage you require along with add-ons that you might want to add to the plan.

How to File a Claim for a Shopkeeper Insurance Policy?

A policyholder needs to follow the below process in order to file a claim for a shop insurance plan:

• Inform Your Relationship Manager – Report the incident to your designated relationship manager as soon as possible.
• Fill & Submit the Claim Form – Complete the claim form and attach the required supporting documents.
• Claim Assessment & Registration – Your relationship manager will forward the details to the insurer to initiate the claim process.
• Surveyor Appointment – The insurer will assign a surveyor to inspect the damages and assess the claim.
• Submit Required Documents – Once the survey begins, the surveyor will guide you on the necessary paperwork. Provide all documents as instructed for a hassle-free process.

Claim Processing & Payout – After evaluation and approval, the insurer will process and release the claim amount promptly.