Shop Insurance

A shop insurance policy is a specially designed insurance policy that provides coverage for a shop’s contents and the property. This shop insurance for small to medium-sized shops covers burglary along with any mishaps due to natural calamities, accidental fire, etc. just like fire insurance.
Shopkeeper insurance provides coverage against any potential risks or mishaps that insured small and medium-sized shop owners are likely to face. Thus, it safeguards the policyholder’s business interests besides protecting his property.

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What is Shop Insurance?

A shop insurance policy is a type of insurance policy that provides financial aid to a shop owner in case of theft, manmade disaster, natural calamity, etc. It is a legal contract between the insurer and policyholder and the insurer reimburses the amount for any incident that resulted in loss or damage.

Why is Shop Insurance Required?

Small to medium-sized shopkeepers work in day-to-day profit which means they do not have much margin in their business. Therefore, it may become difficult for them to handle situations involving 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.

A shopkeeper insurance policy shields a small/ medium-sized shopkeeper from any perils that he may face. It protects the property and the business interests of the shop owner. It also offers coverage of a standard fire & special perils policy that includes any loss to the building from earthquake risk.

Shop insurance plans offer protection to the insured against financial crisis in case of an accident in his/her shop or any other related incident.

Who needs a Shopkeepers Insurance Policy?

Many people are not sure whether they need a shopkeepers insurance policy to protect their shop or not. To give you some clarity, here is a list of different kinds of people who must buy shop insurance plans:

  • Independent Shopkeepers – People who run a shop as their primary source of income should get it insured under the shop insurance plans. This is because any unforeseen loss or damage to the shop will directly affect their livelihood and thus, they need to stay prepared for any adverse circumstances.
  • Family Business Owners – If you run or operate a shop, which is owned by you or your family, and sell products such as clothes, footwear, furniture, stationery, etc. should get yourself a shopkeepers insurance policy.
  • Shopkeepers with Shops in Prime Areas – In case you own a shop at one of the prime locations or markets in the city, then you should definitely need insurance to protect your shop. This is important because prime locations are more prone to risks than other areas.
  • High-Risk Businesses – Certain kinds of shops or businesses are more prone to risks or dangers. For example, a CNG fuel station is more susceptible to fire than a stationery shop. Similarly, an electronic shop is more likely to get robbed than a footwear shop. Therefore, it is important for people running high-risk businesses to own a shopkeeper insurance plan to stay covered against any eventuality.
  • Multiple Shop Owners – Shop insurance plans are not only meant for people who own one shop but also for people who own multiple shops. The probability of facing an emergency increases with more number of shops. Thus, multiple shop owners should make sure to buy a policy for each of their shops.

Key Features & Benefits of Shop Insurance

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

  • Protection of the Property: Shop insurance covers any loss or damage caused to the insured property 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. The breakdown of electrical, mechanical, and electronic equipment are covered as well.
  • Liability Coverage: Some policies under this plan also cover the legal liabilities of a third party. Additionally, third-party bodily injuries and property damage is also covered. Worker compensation as per act 1923 and fatal accident act 1855 is also incorporated in some Shop insurance plans.
  • Money Protection: Another major advantage that one gets with shop insurance is the protection of money. If the insured's money gets lost in the transit between the shop's premises to the bank or vice-versa because of robbery, theft, or another unpredictable event, then the insured shopkeeper can enjoy his peace of mind. This is because money in the safe and money on the counter both are covered in the policy.
  • Cost-Effective Plans: Most Shop insurance plans are cost-effective and provide comprehensive coverage at an affordable premium.

Shop Insurance Plans in India:

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

  • Fire Cover
  • Aircraft damage Cover
  • Implosion/ lightning explosion
  • Malicious Act, Riot and Strike Cover
  • Cyclones, storms, floods, tornados, typhoons and tempest hurricane cover
  • Machinery breakdown cover
  • Burglary cover
  • Infidelity cover
  • Personal accident cover

Add-On Covers Provided by Shopkeeper Insurance

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

  • Earthquake
  • Escalation
  • Terrorism

Types of Shops Covered Under Shopkeepers Insurance:

Here is a list of shops that are covered under shop insurance plans:

  • Mobile and Other Electronics – It includes shops that are involved in the sale of mobile phones, electronics and accessories. For example, Chroma, Vijay Sales, Reliance Digital, etc.
  • Personal Lifestyle and Fitness – It includes all shops and complexes involved in personal and lifestyle sectors, such as malls, spas, clothes showrooms, gyms, etc. For example, Ambience Mall, Looks Salon, Zara showroom, Gold’s Gym, etc.
  • Grocery and General Stores – It includes all the general stores, grocery/ kirana stores in your society or neighbourhood as well as the budget-friendly supermarkets that sell a variety of groceries and other products. For example, Reliance Fresh, Big Bazaar, Spar, D-Mart, etc.
  • Manufacturing and Processing – It includes all businesses involved in any kind of manufacturing and processing units, such as factories and mills, that manufacture final products for business. For example, Nestle factories, textile mills, Bata shoe manufacturing units, etc.
  • Food and Eatables – It includes all shops and businesses that sell food or eatables, cafes, restaurants, food trucks, etc. For example, Haldiram’s, Al Jawahar, Theobroma, Big Chill Café, etc.
  • Home Repair Services – It includes all kinds of shops or businesses that are involved in repair services. It comprises of the carpenter shop, motor garages, plumber shop, etc. For example, Hyundai Service Centre.
  • Healthcare – It includes all businesses and shops that are involved in providing healthcare services, such as hospitals, diagnostic centers, clinics, pharmacies, etc. For example, Max Hospital, Apollo Pharmacy, Dr. Lal Path Labs, etc.

Others – This category includes all other kinds of shops and businesses that are not covered in the above-mentioned category of shops.

What is Not Covered in a Shopkeeper Insurance Policy?

The common exclusions of a shop insurance policy are as follows:

Loss, damage, and destruction caused due to:

  • War or warlike operations
  • Losses of earnings
  • Contamination or pollution
  • Contaminations 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:

  • Wear and tear
  • 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 an insurance web aggregator, then he/she will be able to find the best policy. All one needs to do is to provide his/her requirements and the web aggregator will give the most suitable result.

How to Calculate Shop Insurance Online?

The process to calculate shop insurance online is very simple. Anyone can easily calculate the premium of their shop insurance policy online, which varies from one insurer to another. To calculate the premium for shop insurance online, follow the steps given below:

  • Fill up the form by entering the required details, including the name of the company, city and the contact number
  • Select the coverage you want for the shop and accordingly, provide the required details. The various types of coverage may include:
    • Coverage against fire & allied perils, burglary, and housebreaking: You would have to enter certain details, including the value of stock present in the premises, the value of the items present in the shop, coverage amount (excluding land cost) for stock, fixtures & fittings, goods and other items
    • Money insurance: You would have to enter the value of the money
    • Pedal cycle cover: You would have to provide details regarding the make and model of the pedal cycle, name of the manufacturer, year of manufacturing, frame number and the value of the pedal cycle
    • Neon glass cover: Provide the total value of the neon signs installed in the shop
    • Fixed plate cover: Enter the total value of the fixed plate glass in the shop premises
    • Baggage cover: A brief description of the baggage under insurance
    • Business interruption cover: You would have to provide information on the gross income, accountant’s charge and indemnity period, Sales Tax number and PAN number
    • Personal accident cover, fidelity guarantee cover, public liability cover, electronic equipment cover, workmen compensation cover and breakdown of electrical appliances are other types of covers available
  • Submit all the other details required
  • Click on the option to calculate the premium
  • The premium amount will be displayed on the screen

Shop Insurance Premium Calculator

Along with all the online features provided by insurance companies to make their customer's buying experience smooth, they also offer an online tool that helps their customers in calculating an estimated premium amount for their desired shop insurance policy. You can look for it online on the insurer’s website and calculate the premium amount after selecting the kind of coverage you require along with add-ons that you might want to add to the plan.

How to File a Claim for a Shop Insurance Policy?

A policyholder needs to follow the below process in order to file a claim for a 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.

Shop Insurance FAQs

  • Q: Why is Shop Insurance necessary?

    Ans: Shop insurance is designed to protect your business from key risks. As one’s business is always exposed to certain risks such as potential liabilities towards property and people, items within the building, income, etc. All these are covered under this policy, where the insured is compensated for the loss.
  • Q: Which businesses should invest in Shop and Small Business Insurance?

    Ans: If you are a retailer, providing the utmost protection to the business, customers and employees is your responsibility. You can’t ignore the risk of damage or theft of stock, along with the other incidents which can impact adversely your business. That’s why you need shop insurance to ensure the future and finances of your business are well protected.
  • Q: What level of cover do I need?

    Ans: The level of coverage you need will depend on your insurance needs of yours. That’s why it's better to analyse the requirement first, then buy.
  • Q: 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 or injury within the premises, public liability insurance comes in handy to bear the liabilities on you.

    3. You will be sued by a person harmed by your product. The liability can be huge if the condition is serious. Shop insurance covers such cases as well.

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

  • Q: What is Loss of Money cover?

    Ans: Shop insurance covers business-related money that is stolen. This policy covers you for loss of money when you carry it to the bank or from your premises. The insurer will recompense the amount lost; however, it shouldn’t be due to your negligence.
  • Q: What are the plans under Shop Insurance?


    1. Fire Insurance

    2. Aircraft Damage Cover

    3.  Burglary Insurance

    4. Coverage Against Perils

    5. Infidelity Cover

    6. Machinery Breakdown Cover

    7. Personal Accident Cover

    8. Malicious Damage Cover

    9. Natural Calamities Like Flood, Earthquake, Storm, Hurricane, etc.

  • Q: What are the exclusions of Shop insurance?

    Ans: The below situations are not covered under shop insurance plans:

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

    2. Loss of earnings

    3. Burglary cased due to the explosion

    4. Damage due to wear and tear

    5. Pollution

  • Q: What does shop insurance cover?

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

Policybazaar for Business - Shop Owners Insurance - Customer Reviews
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Based on 21 reviews
out of 5
Based on 21 reviews
1 users
18 users
2 users
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4.5 March 05, 2022
Claim For Vandalism
Our shop was vandalised. We recived claim settlement from our insurer. We had bought the policy from policybazaar.
5 March 01, 2022
Settlement Claim For Losses Due To Break In
We sell ethnic wear and recently we had a break in. We had suffered losses. After submitting details, we were able to get claim settlement for our damage and losses.
4.5 February 25, 2022
Explained Every Step
Executive was on the phone while I was filling up the claiming deatils. They have literaly explained every little thing to me and were there at every step.
4 February 21, 2022
Replaced Cashless
Well while shifteing one of the items in the shop, we broke a glass pane. Luckily we had it covered under the insurance and we got it repalced cashless.
4.3 February 17, 2022
Needed Covers
In these hard times, i thought of buying add on covers for my shop. It protects against earthquake, terrorism and many other things. It was a needed cover for me.
3.8 February 11, 2022
Happy Purchase
As I was first time buying insurance for me I didnt know it can be done without a broker and without paperworks. I am impressed and happy with the policy I had bought online from PolicyBazaar.
4.3 February 10, 2022
Tax Benefits
I recentally started gym and bought shop owner insurance for it from PolicyBazaar. It was on an affordable rate and also had tax benefits.
4.5 February 09, 2022
Comprehensive Cost Effective Packages
I found a reasonable comprehensive cost effective coverage for my shop from PolicyBazaar. I like the plan and it has a good extensive coverage.
4.3 February 09, 2022
Good Investment
We got third party liability cover in our shop owner insurance coverage. It has other benefits as well and also tax benefits. It was a good investment on our part.
4 February 09, 2022
Efficient Faetures
I purchased shop owner insurance for my new shop. It covers againsta number of things such as theft, fire, and the like. I calculated in their website the policy that would be beneficial for me and got just the deal we needed.

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