A shop insurance policy is specifically designed for small and medium-sized shop owners to provide cover against damage or loss of the structure of the shop and its contents. Shop insurance covers financial loss incurred due to unfortunate events like fire, flood, earthquake, riot, and burglary of cash placed in a safe place or while it is in transit from shop to bank or vice-versa.
Why is Shop Insurance Required?
Small to medium-sized shopkeepers work in day to day profit that means they do not have much margin in their business. Therefore, it may become difficult for them to handle situations involving burglary, fire, etc. in their shop and its contents. Therefore, to safeguard a shopkeeper against various risks related to the shop and its contents, a shop insurance policy came into the picture.
Shop insurance plans offer protection to the insured against financial crisis in case of some accident in his/her shop or any other related incident.
Key Features & Benefits of Shop Insurance
he major benefits that one gets with a shop insurance policy are:
- Protection of the Property: Shop insurance covers any loss or damage caused to the insured property due to fire, earthquake, explosion, natural perils, and riots. Apart from the shop it also covers its contents. Moreover, damage incurred due to housebreaking and burglary is also covered. Breakdown of electrical, mechanical, and electronic equipment are covered as well.
- Liability Coverage: Some policies under this plan also cover the legal liabilities towards a third-party. Additionally, third-party bodily injuries and property damage is also covered. Worker compensation as per act 1923 and fatal accident act 1855 is also incorporated in some Shop insurance plans.
- Money Protection: Another major advantage that one gets with shop insurance is the protection of money. If insured’s money gets lost in the transit between the shop’s premises to bank or vice-versa because of robbery, theft, or another unpredictable event, then the insured shopkeeper can enjoy his peace of mind. This is because money in safe and money in counter both are covered in the policy.
- Cost-Effective Plans: Most of the Shop insurance plans are cost-effective and provide comprehensive coverage at an affordable premium.
Shop Insurance Plans in India:
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
- Cyclone, storm, flood, tornado, typhoon, tempest hurricane cover
- Machinery breakdown cover
- Burglary cover
- Infidelity cover
- Personal accident cover