Shop Insurance

A shop insurance policy is specifically designed for small and medium-sized shop owners to provide cover against damage or loss of the structure of the shop and its contents. Most of the policies under shop insurance cover financial loss incurred due to unfortunate events like fire, flood, earthquake, riot, and burglary of cash placed in a safe place or while it is in transit from shop to bank or vice-versa.

Why is Shop Insurance Required?

Small to medium-sized shopkeepers work in day to day profit that means they do not have much margin in their business. Therefore, it may become difficult for them to handle situations like burglary, fire, etc. in their shop and its contents. Therefore, to safeguard a shopkeeper against various risks related to the shop and its contents, a shop insurance policy came into the picture.

Having shop insurance as well frees an insured from the worries of a financial crisis in the situation of some accident in his/her shop or other related incidents.

Key Features & Benefits of Shop Insurance

The major benefits that one gets with shop insurance policy are:

  • Protection of Property: This type of insurance policy covers the property loss incurred due to fire, earthquake, explosion, natural perils, and riots. Apart from the shop it also covers its contents. Moreover, damage incurred due to housebreaking and burglary is also covered. Breakdown of electrical, mechanical, and electronic equipment are as well covered.
  • Liability Cover: Some policies under this plan also cover the legal liabilities against third-party. Additionally, third-party bodily injury or property damage is covered as well. Worker compensation as per act 1923 and fatal accident act 1855 are also incorporated in some plans.
  • Money Protection: Another major advantage that one gets with shop insurance is the protection of money. If insured's money gets lost in the transit between shop's premises to bank or vice-versa because of robbery, theft, or another unpredictable event, then the insured shopkeeper need not worry. This is because money in safe and money in counter both are covered in the policy.
  • Cost Effective Way: Most of the policies under this plan are cost effective and provide comprehensive coverage in affordable premium.

Shop Insurance Plans in India:

The following are the shop and small business insurance plans available in India:

  • Fire
  • Aircraft damage
  • Implosion/ lightning explosion
  • Malicious damage and riot strike
  • Cyclone, storm, flood, tornado, typhoon, tempest hurricane
  • Machinery breakdown
  • Burglary
  • Perils
  • Infidelity
  • Personal accident

Add-On Covers Provided by Shopkeeper Insurance

Apart from the above-mentioned covers, a shopkeeper insurance policy also provides the following covers as add-on or rider by paying an extra premium:

  • Earthquake
  • Escalation
  • Terrorism

What is Not Covered in a Shopkeeper Insurance Policy?

The common exclusions of shop insurance policy:

  • Loss, damage, and destruction caused due to:
    • War or warlike operations
    • Losses of earnings
    • Contamination or pollution
    • Contamination s caused due to radioactivity, waste, or nuclear fuels, ionizing radiations
  • Burglary caused due to:
    • Explosions or fire
    • Member or inmates of the household of the insured or insured’s business staff
  • Loss, damage or destruction of electronic equipment caused due to:
    • Tear and wear
    • Defects or faults existing during the commencement of insurance in the knowledge of the insured or his/her representative.

How to Compare and Select the Best Shop Insurance Online?

Since there are various shop insurance plans available online, thus it may become difficult for anyone to select the most suitable plan. However, if one compares shop insurance policies online on the website of insurance web aggregator, then he/she will be able to find the best policy of this category. All one needs to do is to provide his/her requirements and the web aggregator will give the most suitable result.

How to File Claim for Shop Insurance?

A policyholder needs to follow the below process in order to file a claim for shop insurance plan:

  • The first and foremost thing is to inform the insurance provider within 24 hours of loss or damage.
  • Inform the police in case of burglary or theft.
  • Call the fire brigade immediately in case of fire.
  • Duly fill and submit the claim form and other relevant documents to the surveyor.

What is Shop Insurance?


Shop insurance is designed to protect your business from the key risks. As one’s business is always exposed to certain risks such as potential liabilities towards property and people, items within the building, the income etc. All these are covered under this policy, where the insured is compensated for the loss.

Why is Shop Insurance necessary?


If you are a retailer, providing utmost protection to the business, customer and employees are your responsibility. You can’t ignore the risk of damage or theft of stock, along with the other incidents which can impact adversely on your business. That’s why you need shop insurance to ensure the future and finances of your business is well protected.

Which businesses should invest in Shop and Small Business Insurance?


Those who are into retail business can opt for shop business to provide complete protection to various assets.

What level of cover do I need?


The level of coverage you need will depend on the insurance needs of yours. That’s why it's better to analyse the requirement first, then buy.

What are the optional covers to be clubbed with Shop Insurance?


1. Employers liability cover for injury or sickness claims

2. If your business is being sued for causing damage to a third party’s property, injury within the premises, the public liability insurance comes in handy to bear the liabilities on you.

3. You will be sued by a person harmed by your unsafe product. The liability can be huge if the condition is serious. In such cases, shop insurance comes in handy to cover those expenses.

4. If your business premise is damaged by some of the external forces such as fire, flood, the loss is covered by compensating the cost of repair or rebuilding

What is Stock cover?


Stock cover protects your business items from theft, damaged or destroyed. As you can’t compromise on your stock as it is the core of your business, providing full protection to it is essential. With this cover, you can get the full replacement value, in case of damage or theft.

What is Loss of Money cover?


With a Loss of Money Cover you can cover the business-related money that is stolen. This policy covers you for loss of money when you carrying it to the bank or from your premises. With this you can be reimbursed for the lost amount, however, it shouldn’t be due to your negligence.

What are the plans under Shop Insurance?



2.Aircraft Damage




6.Machinery breakdown

7.Personal Accident

8.Malicious damage

9.Natural calamities like flood, earthquake, storm, hurricane etc.

What are the exclusions of Shop insurance?


The below situations are not covered under shop insurance:

1.Lose, damage, destruction due to war or war-like situation

2.Loss f earnings

3.Burglary cased due to the explosion

4.Damage due to wear and tear



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*The information provided on this website/page is only for information sake. Policybazaar does not in any form or manner endorse the information so provided on the website and strives to provide factual and unbiased information to customers to assist in making informed insurance choices.

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