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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 cover 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 the insured small and medium-sized shop owners are likely to face. Thus, it safeguards the policyholder’s business interests besides protecting his property.

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 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 some accident in his/her shop or any other related incident.

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. Breakdown of electrical, mechanical, and electronic equipment are covered as well.
  • Liability Coverage: Some policies under this plan also cover the legal liabilities towards 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 insured's money gets lost in the transit between the shop's premises to 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 safe and money in counter both are covered in the policy.
  • Cost-Effective Plans: Most of the Shop insurance plans are cost-effective and provide comprehensive coverage at an affordable premium.

Shop Insurance Plans in India:

The following 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
  • Cyclone, storm, flood, tornado, typhoon, 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

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 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?

You can easily calculate the premium of your shop insurance policy online. It varies from one insurer to another. Generally, you need to enter the following details to derive the cost of premium:

Declaration: Agree or Disagree with the following information:

  • Declaration from the proposed that the construction is Not a Kutcha Construction (Buildings with roofs and walls of thatched leaves/wooden planks/bamboo/grass and the likewise)
  • Well-maintained and in good repair
  • Does not contain hazardous goods

A declaration that the shop does not deal or contain:

  • Manufacturing of the confectionary and meat items
  • Cafes/Restaurants
  • Dry cleaning
  • Sale of Jewelry
  • Tailoring
  • Watch repair

Basic Information:

  • Nature of the Business
  • Premises is under the insurance cover or not
  • Period of Insurance

You need to opt for the following coverage benefits:

  • Protection against fire, perils, burglary, and housebreaking:
    • Value of the Stock in Trade that is kept in the premises
    • Enter the sum you want to insure for the items listed in the building. It does not include the land cost
    • Enter the sum you want for fixtures and fittings in the shop premises
    • Enter the value of the items/ goods kept in the shop premises.
    • Value of all the other items/contents in the shop
  • Money Insurance: Also, enter the value of the money in transit
  • Pedal Cycle Cover:
    • Enter the make and model of the pedal cycle
    • Name of the manufacturer
    • Year of Manufacturing
    • Frame Number
    • Sum Insured: Value the Pedal Cycle
  • Total Value of the fixed plate glass in the insured premises
  • Total Value of the Neon Signs in the Premises
  • A brief description of the baggage under insurance
  • Personal Accident Cover
  • Fidelity Guarantee Cover
  • Public Liability Cover
  • Workmen Compensation
  • Business Interruption Cover: Gross Income, Accountants Charge, Indemnity Period,
  • Pan Number and Sales Tax Number
  • Select the Branch Office: City and Town

Click on the Calculate Premium Option and know your premium

How to File Claim for a Shop Insurance Policy?

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.

Shop Insurance- FAQs

  • Q: What is Shop Insurance?

    Ans: 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.
  • Q: Why is Shop Insurance necessary?

    Ans: 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.
  • Q: Which businesses should invest in Shop and Small Business Insurance?

    Ans: 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.
  • Q: What level of cover do I need?

    Ans: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.
  • 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, 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 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 of the external forces such as fire, flood, the loss is covered by compensating the cost of repair or rebuilding

  • Q: What is Stock cover?

    Ans: Stock cover protects your business items from theft, damaged or destroyed. As you can’t compromise on the stock, it is essential to get it insured. With this cover, you can get the full replacement value, in case of damage or theft.
  • 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 carrying 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. Lose, damage, destruction due to war or 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 the insurance needs of yours. That’s why it's better to analyze the requirement first, then buy.
Written By: PolicyBazaar - Updated: 19 May 2020