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Published on July 15th, 2013 | by Pete

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Shop insurance – managing down costs

Business insurance is an essential consideration for all business owners. Given that much effort, time, and resources are put into launching a business and making it grow, it is wise to invest in an adequate business insurance policy in order to minimise the risks and damages that all businesses are exposed to.

Those who own a shop may find that is not always easy to decide on what type of business insurance they should purchase, so it is very common to pay more than it is really necessary for this type of insurance. The cost of business insurance may range from a couple hundred pounds to well over a thousand, so business owners who want to keep the costs of business insurance down will need to take certain factors into consideration. Below is a list of tips to help manage down the costs of shop insurance.

Purchase insurance packages

By law, shop owners are required to have business liability insurance to cover them in the event of damage or injury to third parties. Staff who work at a shop must be covered by employers’ liability insurance, while protection to members of the public (such as clients) requires public liability insurance. Lastly, because the goods and products sold at a shop might be defective and cause harm or injury, business owners need to consider product liability insurance. Now, because these types of cover are standard, insurance providers may offer discounted premiums to business owners who purchase all three types of business insurance from the same insurer.

Shop around

As with other types of insurance, shopping around and comparing the cost of different insurance premiums can result in savings of several hundreds of pounds. Price comparison sites and consumer groups are useful tools for shop owners, but the options do not end there. It is also recommended to check what type of business insurance cover is offered by high street banks, as some of them offer benefits like no additional charges for monthly payments, discounts for existing customers, or a few months’ worth of free public liability insurance. However, shop owners who operate in a highly specialised market might need to go to an insurance broker, as these professionals should be able to find the best deals available in that sector.

Know what you need

Not all shops offer the same products or services, so each will have unique risks that can increase or lower the price of insurance premiums. Whatever the circumstances might be, it often works out cheaper to buy business insurance that is tailored to the type of shop being run. There are AXA shop insurance packages available for small retailer, a large independent shop, a franchise for example. These tailor-made policies combine mandatory insurance with the most common types of additional cover required by each shop at reasonable prices.

Reduce risk

The cost of business insurance premiums is determined according to the perceived levels of risk of a business. If a shop does not have in place adequate security systems, premiums will increase. Any preventable vulnerabilities will result in higher premiums, so shop owners are advised to improve the overall safety and security of their premises in order to reduce the costs of business insurance.

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