Retail business insurance provides protection to small scale and large chain retail stores. Applying for general liability cover is good but be aware of the fact that the policy may not cover specific risks facing the retail industry. This may require you to dig deep into your business savings and capital in case of claims that may make your business to go under. The policies in this type of insurance are pulled together to safeguard the income of retail businesses for sole traders, large corporation outlets, partnerships and franchises. Retail businesses are prone to rapid changes brought about by extreme seasonal changes, changing government policies and other international statutes. For example, online shopping has led to booming sales in the retail business but presenting a new challenge to the assets.

Types of businesses covered by retail business insurance

Insurance for retail businesses covers a variety of businesses in this particular industry. Some of the retail businesses type of covered include:

  • Grocery stores
  • Cosmetic stores
  • Boutique stores
  • Pet shops
  • Beauty parlours
  • Coffee shops, Restaurants and Bakeries
  • Gift shops
  • Jewellery shops
  • Furniture shops
  • Dry cleaning shops

Effective insurance covers for retail businesses

It is advisable to apply for a retail business insurance cover to guarantee the safety and future of your business. Varying policies are designed to protect assets, customers, employees, assets and income of your retail business against potential risks. Here are some of the policies and the claims they cover:

Public and product liability

Public liability policy provides cover for claims filed for injuries and destruction of customers’ property incurred in your business premises. This cover is essential since most of the retail businesses deal with food stuffs, body wears and services that may affect the body of a client directly. This is why a product liability cover is vital for a retail business.

Property damage

Storm, fire, explosions and earthquake can lead to structural property and stock damage causing serious losses. Grocery stores, fast food joints and bakeries are faced with a special challenge of spoilt stock due to electrical failure. Property damage policy provides compensation for the damaged property and stock bringing your business back on its feet.


When applying for the policy against theft, it is advisable to specify the items you need covered under this policy. In this case, you need to negotiate for a customised policy to suit the potential risks in your business.

Workers compensation

Consulting a reliable retail business insurance provider is highly recommended if you have employees locally and overseas. This policy basically provides cover for the claims made as a result of accidents that affect employees during working hours. You can have a customised policy in case your employees travel overseas frequently for business trips to be covered for hefty foreign currency claims.