Shop Keeper’s Policy
The Shop Keeper’s policy is specially designed for small shop owners that combines various insurance requirements. Since shops are a source of revenue for many people in our country, this package policy is perfect for shop owners in the case of any inadvertent loss of assets. Both small and medium-sized shopkeepers can benefit from such a policy which not only protects their property from risks but also ensures peace of mind by the smooth running of the business.
A shopkeeper’s policy is designed to protect the shop’s contents and property. It not only covers burglary and mishaps, but also focuses on losses occurring due to natural calamities, and accidents. From small to medium-sized shopkeepers, who work through day by day profit, and do not get many chances of saving on margins in their business. To safeguard their interests, and the shop this policy is necessary.
Different kinds of business owners and shopkeepers need to get the shopkeeper’s policy.
Independent shopkeepers
These shopkeepers have their independent shop as the sole source of income. It is necessary to safeguard it against any unforeseen circumstances.
Family business or shop owners
These shop owners also need a protection plan for their business which usually deals in selling footwear, clothes, furniture, etc. Appropriate risk coverage will protect their business and personal interests.
The shop owners who own shops at prime locations should invest in a policy that protects their premises from any risks.
High-risk businesses need better protection than others. A prime example can be a comparison between a gas station versus a stationery shop. The former is obviously at a higher risk especially from a short circuit or a fire than the latter. Such situations require the protective cover of an insurance policy.
Clearing some common doubts:
Who can take the policy?
Two amounts are specified in the policy:
- The limits of liability for any one loss (i.e. maximum liability of the Company)
- The estimated amount in transit during the year for the purpose of premium computation.
Scope
The policy comprises of following 11 sections:
Covers shop building and/or contents therein against loss or damage caused by Fire & Allied perils such as:
- Fire, lightning, explosion of gas in domestic appliances
- Bursting and overflowing of water tanks, apparatus or pipes
- Aircraft or articles dropped therefrom
- Riot, strike, malicious damage, terrorist act
- Earthquake-Fire and/or shock, subsidence and landslide (including rockslide)
- Flood, Inundation, Storm, Tempest, Typhoon, Hurricane, Tornado or Cyclone
- Impact damage by rail/road vehicle not belonging to the insured
Covers contents of insured shop premises (excluding money and valuables) against loss or damage by burglary and/or housebreaking.
Covers loss of money in transit, loss of money/valuables whilst contained in a locked safe, loss of money contained in cashier’s till and/or counter by burglary/housebreaking.
Covers loss/damage to pedal cycles belonging to insured by:
- Fire, lightning or external explosion
- Riot, strike, malicious or terrorist acts
- Burglary and/or Housebreaking or theft
- External accidents
- Flood, cyclone, storm, tempest, and other similar convulsions of nature and atmospheric disturbance
- Earthquake Fire and shock
This section covers the loss of or damage to fixed plate glass in insured’s shop by accidental means.
Covers loss of or damage to neon sign/ glow sign by:
- Accidental external means
- Fire, lightning or external explosion or theft
- Riot, strike, malicious or terrorist act
- Flood, inundation, storm, tempest, typhoon, hurricane, tornado, cyclone
It Covers loss or damage to accompanied personal baggage of insured or baggage in connection with his trade, whilst anywhere in India, by accident or misfortune.
This section covers insured and spouse and/or his children, named in the schedule, aged between 5 & 70 years, against bodily injury which is caused solely and directly by accident and resulting in death or permanent total or partial disablement or temporary total disablement within 12 calendar months of such injuries.
This section covers direct financial loss suffered by the insured due to fraud or dishonesty committed by any of insured’s salaried employees.
This covers the legal liability with respect to accidental death or bodily injury to a third party or accidental damage to their property during performance of any act in connection with the insured’s business.
Compensation to insured’s employees falls under Workmen’s Compensation Act or Common Law.
This covers loss of profit due to interruption of business due to loss or damage sustained by property insured under Section I of the policy due to insured perils.
It is necessary to opt for a minimum of 4 sections for this policy to ensure coverage of which Sections I&II are compulsory.
How to select the assured sum?
The shop building should be insured on market value basis i.e. the depreciated value basis. The contents of the shop should be insured on cost price basis. The sum insured for contents under Section I & II should be identical. The sum insured under Sections III, V, VI, VII, IX, X & XI should be limited to specified percentage of the sum insured for contents.
How to claim?
In case of filing a claim, please connect with us at insurance@surakshainsurance.com and provide all required documents so that a Competent Surveyor may be deputed immediately.