What is Shop Insurance?
Shop insurance is a type of property insurance policy meant for retail businesses. It financially safeguards the shop and its contents from unforeseen events like natural disasters, fire, theft, accidental damage, etc. When your property gets damaged, it can lead to significant financial losses, and that’s where shop insurance can serve as a financial safety net. In addition to protecting the shop, this type of insurance takes care of legal liabilities, i.e., if a third party gets injured on the premises, insurance will provide compensation, including legal fees.
How to Select the Right Shop Insurance Plan?
While selecting the right shop insurance plan, here are some factors you must consider –
- Since every business is unique, you must first assess your insurance needs based on the type of business, its size, location, potential risks, etc.
- The sum insured must be adequate to cover the replacement cost of your shop and its assets.
- Check the policy’s deductible, as this can increase your out-of-pocket expenses. The deductible is the portion of the claim amount you must pay before insurance starts paying. The higher the deductible, the lower will be the premium; if you opt for a high deductible, you should be ready to pay more from your pocket.
- Review the exclusions of the policy to ensure you are protected against risks associated with your business.
- Ensure the insurance provider has a smooth claims process, a high claim settlement ratio, and a good reputation.
Tips to Expedite Shop Insurance Claim
If you are worried about the lengthy and complicated process of claim settlement, here are some tips and tricks to help expedite your insurance claim –
- Notify the insurance company as soon as possible: It’s crucial to notify your insurer as soon as the incident occurs without any delay and provide all the required documentation and information clearly. This will help the insurance company to initiate the claims process quickly without any delay.
- Review your policy coverage: Before filing the claim, familiarise yourself with the policy to understand the deductibles, inclusions, and exclusions. If the damage is covered, you should not have any problems during the settlement process. But if you raise a claim for damage that is not covered, your claim will be denied.
- Document the incident: This is an important step while filing a claim. You must capture photos and videos of the damage soon after the incident. The more evidence you have, the stronger the case, and your claim will also be settled without any hiccups.
- Get Repair Estimates: Along with your claim form, you must also submit repair estimates. So, get a professional to make an assessment of the damage and provide estimates. It will be good if you can get multiple quotes for accuracy and also give options to the insurer.
- Be present during the insurer’s visit: When a surveyor visits your shop to inspect the damage, take him/her around the spot and explain exactly what happened. It will be easy for the surveyor to assess the damage and prepare a report. Any queries that the insurer has can also be clarified on the spot.
- Regularly follow-up with the insurer: After filing the claim, you must be in regular touch with the insurer. Check the status of the claim to ensure the claim process doesn’t get stuck because you have not provided the required documentation. When communication from both sides is clear, it will help in a smooth settlement. Keep records of all written communication with the insurer for future reference.
- Respond promptly to your insurer: If your insurance provider asks for any additional documentation, promptly submit the same to avoid delays in the claims process. Don’t leave any stone unturned from your end.
Conclusion:
Running a retail business has its own challenges and risks. An unforeseen event, such as a fire, theft, natural disaster, or any accident, can cause significant damage to the shop and its assets. Although not mandatory in India, shop insurance is highly recommended to stay financially protected from risks and losses associated with the business.