Shop Insurance: The Ultimate Guide.
The life of the trader is hard and tiring. Every day is a great challenge to fight in an increasingly complex and competitive market, many entrepreneurs do not have insurance for their shops.
Too high operating costs and taxes add to the burden of worries that every small business owner like you experiences daily.
Then there is this long crisis (health and economic) which reduces the profits of the shops more and more.
Do you find yourself in this identikit? I guess so, like almost all 735,000 shop owners in Italy.
The truth is that difficulties and unexpected events are always around the corner.
In this article, I want to explain to you why it is important to have insurance for your shop and what are the main features to keep in mind.
Would you like to sleep more peacefully knowing that someone is protecting your store and paying for the damages that could bring you to your knees?
Well, let's get started!
Why don't entrepreneurs protect themselves?
Don't have a policy for your business yet? You are not an isolated case.
An ANIA survey shows that many entrepreneurs do not have insurance for the shop.
Because?
The answers say that the main reason is the tendency to underestimate the risk of one's business.
When asked to those who carry out an artisan activity or to those who have a shop why they have not protected themselves with appropriate insurance, the classic answer is: "but does it have to happen to me?"
It is not a matter of luck or bad luck, but of simple statistics: no one is immune from damage.
If we then look at the data, it is surprising that the average compensation for events from fire (€ 297,000), theft, and water damage (€ 98,560) is very high.
Why is shop insurance useful?
So why insure?
Start asking yourself these questions:
Would I be able to meet the costs resulting from the damage to my business?
How does the use of own funds (almost always made necessary by access to bank loans) affect the company's income capacity?
How long can I afford to sit still without exiting the market?
What is the cost/benefit ratio of having an insurance policy?
Have you found an answer that does not force you to squeeze money out of your pocket and that does not risk sending your business bankrupt?
I guess not, right?
I know your work well, I have been accompanying your fellow entrepreneurs for over ten years and I understand that the priorities to be protected are these:
business continuity: 43% of SMEs risk permanent closure in the next 5 years after a business interruption.
access to credit: activate alternative instruments to bank credit.
de- bureaucratization: reduce the tax burden and simplify the tax system.
digitization: 65% of entrepreneurs feel more exposed to cyber risk.
Did I also hit your priorities?
Well, keep reading because now it gets very interesting.
Mario, you are right, but the policy is another cost that adds to the endless list of expenses!
You have all my solidarity and for this very reason, I invite you to look at the insurance of your shop as an important investment.
By choosing an insurance cover, you transfer the main risks associated with carrying out the activity and which would inevitably fall on the company's assets.
So higher costs?
You will have understood that it is the exact opposite because those resources are freed which, more or less unconsciously, are set aside for risk management.
Shop insurance: main features
If you've read this far, you'll understand the importance of having insurance for your shop.
Whether you are a craftsman or a trader, your policy must have these five characteristics:
Activity protection: fire, extraordinary events, catastrophic events, plants, and everything that protects the place where your business takes place.
Asset Protection: Civil liability and legal protection are the main guarantees that protect your income in case of claims for damages to third parties.
Digital protection: The pandemic has dramatically increased the demand to run your business online, exposing you to new but equally important risks.
Assistance and prevention services: the intervention of a craftsman to repair small damage or the assistance of a professional for the management of disputes.
Business continuity: whoever stops is lost and the pandemic has blocked many commercial activities with forced closures.
Aid for interruption of exercise buffers losses and promotes recovery.
In order not to be too technical, I tell you that the insurance of your shop must pay for the most classic damages (fire, water, civil liability), but above all, it must be able to get you to reopen as soon as possible.
Shop insurance: the most frequently asked questions
In over ten years of experience in the business insurance industry, I have collected the top questions that clients have asked me.
I want to share them precisely because they are important and you may already find many useful answers.
Is shop insurance important even if the property is not owned by me?
Yes. Even if you are not the owner of the property there are several responsibilities.
In case of damage, in addition to the content (goods, furnishings for which you are directly responsible), the walls and the structure of the building itself can also be damaged.
In that case, the owner of the property could ask the renter for damages.
Why do I have to have shop insurance if the property is already insured with the fire policy?
In classic policies for the protection of the building, guarantees for the content, i.e. goods, equipment, and furnishings of the shop, are often excluded.
Having shop insurance also protects against exceptional events such as vandalism or damage during demonstrations, marches, or strikes.
If I know in detail the constructive characteristics of the building, what happens?
The Fire guarantee of the policy is operational on the condition that the building is built with non-combustible materials.
No particular construction specifications are required. If in doubt, a competent insurance advisor will be able to help you best.
If thieves damaged shop windows and furniture without stealing anything, am I entitled to compensation?
Certainly. The guarantee also provides for compensation in the event of attempted theft with damage to the contents of the business
What if they snatch my cash while I'm taking it to the bank?
Also, in this case, the policy includes a guarantee that indemnifies the theft, theft, and theft of valuables when they are transported outside the shop.
In my shop, I also sell goods of a different nature than those related to my business. In case of damage, what happens?
No problem. The policy also indemnifies these goods, as long as they represent a marginal part of those related to the main activity.
Does the theft guarantee have special conditions?
The guarantee is effective when the premises are closed.
The prevention required is the minimum present in every shop and if in case you forget to make protection effective by leaving only the glass, the guarantee will still be operative, even if with an uncovered one.
Am I compensated if thieves break into my shop during the break time, if I haven't lowered the shutter?
Yes. The guarantee provides for a refund, even if thieves enter during the break time and the premises are protected even only by the windows.
However, it is necessary that these have been effectively closed and therefore there has been a break-in of the same.
Are the employees and/or family members participating in the business protected by the shop's insurance?
Yes. Civil Liability coverage, in addition to protecting the shop owner, also protects the insured's employees and family members, as long as they carry out the activity within the business.
Does the business policy take action in the event of an employee injury?
Yes with the “Workers' Civil Responsibility” (RCO), which protects the employer for this type of responsibility and INAIL's recourse actions.
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