Shopkeeper Insurance

Shopkeeper Insurance

Why does one need a Shopkeeper Insurance Policy?

Shopkeeping is a business endeavour that aims to maximise earnings while adhering to societal norms and governmental rules and regulations. The mind must be clear of other concerns unrelated to trading, such as accidents, in order to concentrate on this main task. Failure to do so could hinder commercial operations.

What does the Shop-keeper Insurance Policy Cover?

Every potential risk and danger that small to medium-sized business owners may encounter is covered by a shopkeeper insurance policy. In the commercial endeavour, it offers protection for the insured’s property and interests.

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There are thirteen sections in the Shopkeepers Insurance Policy. Coverage by section is as follows:

Sections Type of Insurance What is covered What is not covered

1) Building Damage
(A) Building damage or loss due to fire. Earthquake is one of the hazards covered by the Standard Fire & Special Perils Policy.Bonds, securities, cash, valuables, jewellery, precious stones, livestock, cars, pedal bikes, etc. can all be lost or damaged.
(B) Contents (Stock in Trade & FFF) Fire Loss. Earthquake is one of the hazards covered by the Standard Fire & Special Perils Policy.

2) Break-Ins Content loss or damage (apart from money and valuables) due to burglary or housebreaking, excluding situations in which the insured’s spouse, employee, or family member is involved as a principal or accessory. Animals, cars, pedal bikes, papers, bonds, securities, jewels, cash, valuables, etc. are all lost or damaged.

3) Money or Financial loss resulting from an accident or mishap between any two locations within a 15-mile radius of the insured premises while in the possession of the insured and/or his authorised staff.
(A) Financial loss involving a principal or accessory employee of the insured or a member of the insured’s family
(B) Due to housebreaking or burglary, cash is kept under lock and key in a steel cupboard, cash box, or burglar-resistant safe.
(C) The loss of money from a safe after the insured person uses the key to the safe or any duplicate of it, unless the key was gained by violence, assault, or threat.   
(D) After attack, violence, or threats of burglary or housebreaking against the insured or his staff, cash in at the counter or till during business hours.

4) Pedal Cycle Pedal cycle loss or damage due to the possibility of unintentional external sources, such as fire, lightning, or explosion, as well as theft or break-ins. Legal responsibility of Rs. 10,000 (Inadvertent property damage and third-party accidental death or bodily injury) Racing-related loss or damage, pacemaking while being utilised for hire or reward, overloading, strain, or mechanical failure, and accessory theft—unless the pedal cycle is also stolen.

5) Plate Glass accidental damage to the insured building’s fixed plate glass (plain and average glazing quality). Glass chipping and disfigurement, and framework breakage.

6) Damage or loss of a neon sign or glow sign due to unintentional external factors. Lightning, fire, and external explosion. Bulbs combining and weathering damage.

“Buying a Shopkeeper’s Insurance policy is the way of a smarter businessperson.” National Insurance Company (NIC)

7) Luggage Loss/Damage to the insured’s personal belongings and any accompanying trade-related luggage due to accident or bad luck.
(A) Travel tickets, cash, jewellery, consumables, and loose items like sticks, umbrellas, sunshades, etc.
(B) Damage sustained while travelling inside the town, city, or village where the insured person resides permanently.

8) Individual Mishap Death or physical harm to oneself or one’s employees between the ages of 16 and 65 caused by unintentional, violent, external, and visible methods. TTD compensation per week while in the hospital. According to PA policy, there are some exceptions, including suicide or attempted suicide, self-harm, and death or injury brought on by the insured’s willful violation of the law.

9) Promise of Fidelity direct financial loss brought on by an act of fraud or dishonesty (larceny, embezzlement, or forgery) committed by workers of the insured.
(A) No employee may be the subject of more than one claim.
(B) Commission agents and salespeople will not be covered.

10) Insurance for Electronic Equipment Personal computers, CCTV, and other related devices are examples of electronic equipment. loss brought on by normal wear and tear, defects, or circumstances that existed at the start of the policy and for which the manufacturer bears responsibility.

11) Electrical Appliance Breakdown breakdown of the shop’s installed appliances, including the refrigerator and air conditioner. loss brought on by defects that existed prior to insurance or for which the manufacturer or supplier has responsibility.

12) Public liability of the insured for accidental death or physical harm Responsibility to family and coworkers.
(A) Employers’ Liability (WC) In accordance with the WC Act of 1923, the insured’s legal responsibility to his workers. Liability to Family Members and the Public

13) Interruptions to Business Loss with regard to the following:

  • Loss of Gross Income
  • Expenses towards
  • Accountant’s Charge
  • Escalation of loss as a result of inadequate funding and limitations enforced by the government. losses resulting from significant harm to securities records, plans, drawings, writings, etc.

Salient Features of the policy:

  • Any Pucca built store with a total building and contents value can purchase a shopkeeper insurance policy.
  • Under section I insurance, 15% of the total insured is waived.
  • Sections 1B and 2 must be removed, out of a minimum of four sections. One of the optional provisions is the Business Interruption (Section 13).
  • Stores that sell candy and products made from sweet meats may be covered as long as no manufacturing is carried out on the property.
  • Restaurants / cafes cannot be covered.
  • As long as no process is conducted on the shop’s property, dry cleaners can be insured.
  • Jewellery shops cannot be covered.
  • Watch repairers and tailor shops can be covered as long as no procedures are followed. However, incidental repairs are permitted.
  • Showrooms and display centers that do not conduct sales are not eligible for Shopkeeper Insurance Policies.
  • Electrical and electronic items installed in the insured’s store, such as CCTV, personal computers, and similar equipment, can also be protected against the risk of fire, burglary, and mechanical or electrical failure.
  • Discounts are permitted for taking out coverage under more than four areas.
  • There is also a discounted pricing for a long-term policy that lasts up to four years.
  • Different aspects of the policy are subject to different excesses.
  • At an extra premium, terrorism risk can also be covered.
  • The proposer of business interruption insurance must have a sales tax number and, if he is a tax payer, a permanent account number (PAN).
  • With the exception of PA, Fidelity Guarantee, Public Liability, and WC, all Sections offer the option to reinstate the insured amount after a loss.

How does one select the sum insured?

The following actions should be performed in the event that an incident gives rise to a claim under the policy: The entire cost of rebuilding the property, including architect fees and other expenses, as well as the cost of removing any debris and adhering to any new building requirements or bylaws, must be covered by the sum insured for construction.

For contents, the sum insured should be the replacement value.

The proposer chooses the sum covered for the other parts, which include Business Interruption (Section 13), Public Liability & Workmen Compensation (Section 12), Personal Accident (Section 8), Fidelity Guarantee (Section 9), and Money Insurance (Section 3).

General Exclusions

Loss or damage is not covered by this insurance.

  • As a result of war and related dangers
  • By radiation from nuclear sources and other factors.

These are just the policy’s key characteristics. For additional information about the restrictions, exclusions, and scope of coverage, please get in touch with the closest Oriental office.

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