Keeping your business risk information up to date is essential to ensure your insurance cover remains adequate, your premium remains competitive, and your insurer fully understands and accepts your risk.

At DPI, we provide bespoke advice and service when arranging your insurance. If there’s anything you don’t understand or need help with, please don’t hesitate to contact us – we’re here to support you.

Below is a summary of the key areas we typically review at renewal for a Shop Insurance policy and why they are important:

1. Business Description and Activities

It’s important to confirm that the nature of your business remains accurate. For example:

• Are you solely retailing in-store, or have you added online sales?
• Have you introduced new product lines or services?

Accurate business descriptions ensure that the cover provided matches your actual trading activities and avoids claim disputes.

2. Buildings and Contents Sums Insured

We’ll check whether your insured values remain appropriate:

• Buildings (if owned) should be insured for the full rebuild cost, not the market value.
• Contents, fixtures and fittings, and shop equipment should reflect their current replacement value.
• Review your stock levels, especially if they fluctuate seasonally or have increased significantly.
• Underinsurance may result in reduced claim settlements due to the ‘average clause’.

For further information, see our downloadable guide: “How to Avoid Underinsurance.”

3. Business Interruption Cover

This cover protects you against loss of income following an insured event (e.g. fire, flood). We’ll review:

• Indemnity period (typically 12, 24, or 36 months)
• Estimated gross profit or revenue
• Ensuring these figures are up to date is vital to protect your business’s ability to recover following a major loss.

For further information, see our downloadable guide: “How to Avoid Underinsurance.”

4. Money Cover

We’ll confirm how much cash you typically hold on-site, in transit, or banked overnight. If you’ve started taking more cash payments or changed your banking routine, your limits may need adjusting.

5. Employee and Public Liability

• Employers’ Liability is a legal requirement if you employ staff (including part-time or temporary workers). This is based on wage roll and roles.
• Public Liability protects you against claims from third parties (e.g. slips and trips in the shop). This is often rated on footfall or turnover.

It’s essential to ensure all staffing changes and activities are fully disclosed.

6. Theft and Security Measures

Most insurance policies have standard security conditions relating to theft, that include but are not limited to:

• Locks, shutters and grilles
• Intruder alarms (including whether they are monitored and maintained)
• Ensuring security protections are in force when premises are closed

Let us know if there have been any security upgrades or if your security measures have changed in any way as failure to comply with policy conditions could affect claims.

7. Claims History

Reviewing any claims from the previous year’s helps identify potential risk management improvements. Frequent or high-value claims may affect terms at renewal, but demonstrating proactive loss prevention measures can support favourable outcomes.

8. Insurance General Acceptance – Adverse Financial History, Health & Safety Breaches and Criminal History

Commercial insurance is subject to an ongoing fair presentation of risk and insurance contracts are subject to certain standard general acceptance criteria. It is the ongoing responsibility of the policyholder to ensure any adverse financial history, health & safety breaches and criminal history are disclosed as these are considered material facts that directly impact the insurer’s ability to accurately assess risk. Non-disclosure or misrepresentation of such information can lead to serious consequences, including the voiding of the policy, rejection of claims and legal action. Full disclosure ensures transparency, allows insurers to offer suitable terms and helps maintain the integrity of the insurance contract.

Please Note:
This is a general guide only and should not be construed as bespoke advice or a personal recommendation. Policy requirements may vary depending on your specific business, location and insurer.