As the name suggests, shop insurance is aimed in meeting the future needs of shopkeepers. The insurance requirements of shopkeepers can be fulfilled by taking a shop insurance policy. This policy covers all types of damages or loss due to situations of fire, riot, strike, fraud done by employees and so on. Hence, even small shopkeepers are suggested to take a shop insurance policy for future safety and concern.
Shops and shopkeepers
The shop insurance must be new terminology for most of the readers. But this policy helps largely to small or medium-sized shopkeepers. The shopkeepers have to face certain risks and threats. They also need to protect their shop, its contents and the overall property. If this property is insured properly, the shopkeeper can target on their marketing activities properly. They do not have to bother about damage or loss due to any uncertain event in future.
The shopkeepers’ property and his business interests are covered under shop insurance policy.
Let us take an example. You have planned to open a small book store in your locality. Since you have an interest in reading books and would like to inculcate a reading interest in others, book shop is a perfect choice. You have spent on purchasing a small store, purchase of new and old books, furniture, book shelves, and so on. After a month, you noticed that your book shop is doing well in that area. You are satisfied. But two days back, there was a cylinder explosion in the neighboring hotel. Luckily, much harm was not caused to your shop. But now, you seriously feel of getting your shop and its contents insured. Just imagine if it would have been your gold jewelry shop. Then, shop insurance policy would have been the first task on your priority list!
Coverage of the shop insurance policy
Please note that even though this policy benefits shopkeepers, it does cover the shopkeeper’s life. It covers the shop despite of its size and area. The policy is not confined only to departmental stores but all kinds of stores. The valuable contents of the shops are covered under this policy from grocery items, books, stationery, and so on. The shopkeeper is also allowed to select items for insuring under this policy. It is definitely an added point!
Calculation
Now, the basic question is about the sum insured? It is calculated on the basis of value of shop and its contents. The shop value is computed by estimating the rebuilding costs. That is, how much it would take to rebuild your shop after the damage. The assessment of the shop contents is done as per the value when the shop insurance policy was taken. If the shop contains electrical or mechanical items, then these are also included in the policy.
No fear of dangers
The shop insurance policy provides protection to the shop and its contents from dangers such as fire, theft, burglary, riots, strike, robbery or dacoit.
Thus, shopkeepers must understand the significance of taking a shop insurance policy. They must go through the documents carefully. They must also analyze their requirements and what is to be insured by the policy.
