Retail organisations both large and small are particularly vulnerable to influences outside their control, including, Crime (Theft), Stock Damage, Product Liability, Fire and Public Liability. Here we focus on some of the key insurance coverage needs for this industry to avoid financial loss.

Material Damage

For any Business, obtaining the correct cover for its assets (Buildings, Contents, Stock etc.) is extremely important and it is nearly always the first insurance to be considered. Care should be taken to ensure that all the relevant facts are always disclosed, such as the Condition of the Property and ElectricÕs, Method of Heating, Occupation, Security and Storage Arrangements, particularly if these change during the course of a year. This can be a wide and surprisingly complex area of insurance and to ensure comprehensive coverage consultation with an insurance professional is advised as a full understanding of the policy and its limitations is essential. Often cover should be extended to include perils such as Theft, Subsidence and Terrorism and ideally policies should be tailored individually to suit all the relevant business requirements. Geographical considerations should also be taken in account as a standard cover normally applies only to specific premises. Wider cover can be available to include anywhere in the UK or indeed Worldwide.

Employers Liability

Since 1969 the Employers Liability (Compulsory Insurance) Act has required every employer carrying on a business, trade or profession to take out and maintain insurance against liability for bodily injury or disease sustained by their employees, arising out of, and in the course of their employment. The minimum requirement by law is £2 million. In practice, however, insurers do not issue policies in the UK for less than £10 million.

Public/Products Liability

The purpose of Public/Products Liability is to indemnify the policyholder under their legal liability, should they or their products cause death, bodily injury and/or loss of or damage to material property of a Third Party or Parties. Cover can be arranged for goods and services sold in the UK and/or on a Worldwide basis. This cover can be the most important section for any business as often the "buck stops here" and not having the right cover could cause financial ruin with the sheer numbers of potential claimants or the extreme awards now being made by the Courts.

Business Interruption

Fire, flood or other such disasters can cause financial ruin for any business. Whilst Insurers will pay for the repairs to the premises or replacement equipment, full insurance coverage for consequential losses following any such disaster can be vital to ensure the continuance of the business. Serious consideration should be given to protecting the Gross Profit or to buying cover for Increased Cost of Working, or indeed a combination of both.

Crime/Fidelity Insurance

It is possible to provide cover against the dishonesty of your employees for the misappropriation of company monies or other commercial valuables. Extensions in cover can include ex-employees and employees of out-sourced companies. Traditionally cover under this type of insurance has not been available for Theft by non employees. However, now with the increased dependency on computers and in particular access to businesses via the Internet wider cover is available.

Internet/Cyber Liability Insurance

New style Insurance contracts now exist for this business area and are they becoming increasingly important. There are three levels of cover available; firstly, when a website is being used solely as an advertising medium, secondly, when a website is an interactive one and this can include trading on line (such as purchase of tickets) and finally for companies who have an involvement in the formation, design and management of websites. Protection from Fraud, Hacking, Viruses, Infringement of Data Protection and Privacy Laws, Copyright, Libel and Slander, are the core covers. There are additional covers also available depending upon the specific nature and involvement of the website.


It is important that not only new businesses give full consideration to this area of insurance but also well established, old economy companies, who have website activity and who may not be fully aware of the potential for catastrophic failures.

Directors & Officers Insurance

The Companies Act 1985 alone sets out more than 200 offences for which a director can be personally liable. Add to this the numerous other offences under Health & Safety, Environmental, and Financial Services Acts and it can be seen how important it is to consider this type of insurance cover. The Insurance cover protects the personal assets of company directors and officials.

Legal Expenses

Commercial Legal Expenses Protection is becoming increasingly important to small and medium size businesses. This policy provides access to expert advice and assistance in resolving a number of different areas and if necessary will pay for the cost of legal fees and/or accountancy fees to conclude the dispute. Typical areas of cover, which often can be bought as a package include, Contract, Employment, Data Protection, Criminal Prosecution Defence, Property Protection and VAT Disputes. For larger companies wide cover is available for each specific area.


Cover can also be obtained for "After the Event" Litigation. A range of solutions is available for those who wish to pursue their legal rights through litigation.

Good In Transit/Marine Cargo

Transit insurance provides protection for the movement of goods, either the raw material coming into the premises or the finished goods/produce going out. Sometimes the goods are imported or exported, often by Third Party Carriers so a good understanding of who is responsible at every point of the journey is important. This can often vary with each Supplier, Distributor or Retailer. Reliance should not be place on the Hauliers own insurance protection especially if they are transporting goods under CMR or RHA conditions. In such cases cover is restricted and additional insurance is required.

Motor Insurance

Motor insurance is a legal requirement under the Road Traffic Act and as such all companies that own or operate vehicles require cover. Polices are available on single, multi-vehicle or Fleet Basis.

Employee Benefits

Every company should give careful consideration to their employees' Conditions of Service. Click here for details of the various types of Employee Benefits available.