Shop Insurance
The shopkeeper insurance policy is specifically designed to cover all the risks and contingencies faced by small or medium-sized shop owners. It provides protection for the property and the interests of the insured (and their partners) in the business venture.
The sum insured depends on the value of your shop and the value of the contents of the shop. The value of the shop is calculated on the basis of the estimated cost of rebuilding it completely. The contents of the shop are assessed according to their value at the time of purchasing the shop insurance policy. The valuation would also include electrical and mechanical appliances in the shop.
Shopkeepers Insurance: Coverage
What is shopkeepers' insurance?
Shopkeepers' insurance provides you with cover for your shop and its contents.
Fire and Allied Perils
This section of shopkeepers' insurance provides cover for damage to your shop and its contents - business assets, stock-in-trade, equipment, furniture, fixtures, fittings, interior decoration and other contents - against fire and its associated perils that might happen because of natural or man-made calamities.
Natural calamities include fire, lightning, earthquake, landslide or rockslide damage, flood, inundation, storm, tempest, typhoon, hurricane, tornado, or cyclone.
Man-made calamities include explosion of gas in domestic appliances, bursting and overflows of water tanks, apparatus, or pipes, damage caused by aircraft, riots, strikes, malicious, or terrorist acts.
Additional risk covers provide for:
- Removal of debris
- Costs to comply with building regulations following a damage
- Consulting fees for architects, surveyors, and engineers
- Temporary removal of equipment to another place for repairs or renovation
- Loss of rent as landlord and
- Additional expenses on rent for tenant
- Escalation of sum insured throughout the year to guard against inflation
Exclusions
- Insurance companies tend to be selective about the risk covers offered. For example, some companies may charge an additional price for cover against terrorist activities. Yet others may have built-in deductibles where you will have to pay a portion of the claim amount for damage or loss due to natural calamities.
- Loss, destruction or damage caused by:
War, invasion, foreign enemy hostilities, civil war, mutiny, civil commotion
Nuclear activity
Pollution or contamination
Stock spoilage in cold storage due to change in temperature
- Loss, destruction or damage to bullion or unset precious stones, works of art for an amount exceeding Rs. 10000, goods held in trust or on commission, manuscripts, plans, drawings, securities, obligations or documents of any kind, stamps, coins or paper money, cheques, books of accounts or other business books, computer systems records, explosives unless otherwise expressly stated in the policy
- Loss of earnings, loss by delay, loss of market
- Loss by theft during a peril or after it happens except in the case of riots, strikes, and malicious damage covers
- Loss or damage to property insured if they have been removed to another place; this is not applicable to machinery and equipment temporarily removed for repairs, cleaning, or renovation (not exceeding 60 days)