Shop Insurance Calculator

What insurance does a shop need?

“Shop insurance” is a combined commercial policy that bundles several covers into one, and the skill is setting each sum insured correctly – too low and the average clause cuts your claim, too high and you overpay. This calculator asks about your premises, stock, contents and staff, then lists the covers that apply to your shop, flags the one that is a legal requirement, and shows the sums insured to quote. It is built for UK independent retailers – convenience stores, boutiques, salons and takeaways – who want a clear shopping list before speaking to a broker. It does not quote a premium; it sizes the cover.

The covers in a shop policy

• Public liability – for injury to customers or damage to their property in your shop. Essential, and often £5m under a shopping-centre lease.
• Employers’ liability – the legal must if you have any staff: at least £5 million under the 1969 Act, with fines up to £2,500 a day for being uninsured.
• Stock – insured at full replacement value at your busiest time, so a Christmas or seasonal peak is not under-insured.
• Contents, fixtures & fittings – tills, shelving, refrigeration, signage and the shop-fit.
• Buildings – only if you own the premises, insured at rebuild cost; if you lease, the landlord usually insures it.
• Business interruption – replaces lost profit and pays the rent and wages if the shop has to close after damage.

Worked example

A leasehold convenience store carries £30,000 of stock at Christmas, has £20,000 of contents and shop-fit, and employs 2 part-time staff. The calculator returns: £2m public liability; employers’ liability legally required at a £5m minimum because of the staff; stock insured at the £30,000 peak (not the summer average); contents at £20,000; buildings left to the landlord under the lease; and a prompt to add business interruption cover. That is the exact brief for a broker – and it stops a January fire claim being cut for summer-level stock cover.

Frequently asked questions

What insurance does a shop need?

A typical shop policy combines public liability, employers’ liability if you have staff, stock cover, contents and fixtures cover, and buildings cover if you own the premises. Business interruption is strongly recommended so lost profit is covered if the shop has to close after damage.

Is employers’ liability compulsory for a shop?

Yes. If your shop employs anyone, even part-time or casual staff, employers’ liability is a legal requirement of at least £5 million under the Employers’ Liability (Compulsory Insurance) Act 1969, and the HSE can fine you up to £2,500 for each day you are uninsured.

How much stock cover do I need?

Insure your stock at its full replacement cost at the busiest time of year, not the average. If stock peaks before Christmas, set the sum insured to that peak, or ask for a seasonal increase clause, otherwise the average clause will cut a claim made at your fullest.

Do I need buildings insurance for my shop?

Only if you own the premises – then insure the full rebuild cost, not the market value. If you lease, the landlord usually insures the building and recharges you, so you insure your contents, stock and glass instead. Check your lease to see who covers what.

How much public liability cover does a shop need?

Because members of the public are in your premises, £2 million is a common minimum and £5 million is widely chosen, especially in busy locations or shopping centres whose leases often demand £5 million or more.

What is shop business interruption cover?

It replaces lost gross profit and pays ongoing costs like rent and wages if an insured event such as a fire or flood forces the shop to close. Set the sum insured to your gross profit multiplied by a realistic recovery period, usually 12 to 24 months.

Source: employers’ liability rules and the £2,500-a-day penalty from GOV.UK – Employers’ liability insurance. Public liability, stock and contents limits reflect standard UK commercial-insurance conventions.