Sarah Clements

Deterioration of stock insurance can provide essential cover for any business that sells or stores perishable goods.

In this post we will explain what deterioration of stock insurance is and what it covers, along with some common exceptions and limitations to the cover.

What is Deterioration of Stock Insurance?

If an unexpected event causes your perishable stock to spoil or degrade, then deterioration of stock insurance can cover your losses. Specifically, this cover can provide some financial compensation should deterioration make your stock unsuitable for sale.

Business insurance policies generally will not offer cover for stock deterioration as standard. To get the protection you need, you will either need to get a specialist policy, or you will need to add the cover to an existing policy.

Some insurers may specify that you introduce certain measures in order to safeguard your stock, as a condition of cover. This might include installing a failsafe, such as a backup power system, while staying on top of equipment cleaning, servicing, and maintenance schedules.

What Does Deterioration of Stock Insurance Cover?

Deterioration of stock insurance covers loss or damage of perishable goods that need to be stored at certain temperatures.

For example:

• A power failure causing a fridge or a freezer to fail.
• Water damage from leaks or flooding.
• Transport issues – for example, a truck transporting temperature-controlled goods is involved in an accident, resulting in equipment failure.
• Damage from insufficient heating, cooling, or unwanted temperature fluctuations.

Are There Any Exclusions and Limitations to Deterioration of Stock Insurance?

Most deterioration of stock insurance policies will list a number of exclusions and limitations. These might include:

• Poor Maintenance and Neglect – If a fridge, freezer, or other equipment fails as a result of poor maintenance, your insurer may reject your claim. Stay on top of servicing and cleaning schedules to ensure you get the cover you need.
• Foreseeable Events – Similarly, your insurer will likely reject your claim if your stock deteriorates as a result of an incident you could have foreseen and prevented. For instance, you might have to take special measures to protect your stock in the event of a heatwave. If you were aware that high temperatures were forecast, but you did not work to secure your stock, then you may not be covered for any loss.
• Natural Deterioration – Deterioration of stock insurance is designed to cover sudden and unexpected events. It will not cover losses due to slow or gradual decline.
• Pre-Existing Problems – If your stock was already faulty before you put it into storage, then your insurance probably will not cover you for any unexpected events leading to total loss.
• Security Issues – If your equipment fails as a result of a break in, your insurer may reject your claim if they find that you did not take adequate steps to secure your premises. Most policies also include standard exclusions for losses due to war, terrorism, riots, and civil unrest.

Who Needs Deterioration of Stock Insurance?

Any business that stores, transports, or sells perishable goods could benefit from deterioration of stock insurance. This might include:

• Cafes, restaurants, bakeries, butchers, delis, takeaway shops, and any other business that prepares and sells food on the premises.
• Greengrocers, corner shops, newsagents, off-licenses, wine merchants, and supermarkets.
• Pharmacies, along with any business that stores or sells cosmetic and beauty products.
• Florists and other horticultural businesses.
• Warehouses that specialise in storing any kind of perishable good.

Get The Cover You Need for Your Stock

James Hallam is an independent Lloyd’s broker with access to a hand-picked selection of A-rated insurance providers.

We can help you get the specialist stock deterioration insurance you need to protect your business against unexpected events. We can also advise you on essential risk management procedures that could make stock deterioration less likely, and we can show you how to evidence these measures to your insurer in order to potentially reduce the cost of cover.

Get in touch for a free quote today.

There is more to risk management than identifying possible sources of accidents and injuries. It is also important to identify risks that could lead to inefficiencies, disrupt your operations, increase your overheads, and affect your cashflow.

In this post we will explore how to identify risks in your business, and establish the process for managing, mitigating, or eliminating these risks.

Common Risks for Every Business

When assessing the sources of risk in your business, you should consider:

• Property Risks – Including damage from fire, flood, subsidence, and other incidents, along with losses from theft, vandalism, and other crimes.
• Finance Risks – Including cash flow fluctuations, debt management, and economic uncertainty.
• Operations Risks – Including bottlenecks and inefficiencies that could lead to risks, possible hazards posed by outdated or faulty tech, and poor quality control measures.
• Cyber Risks – Including financial and reputational damages from cybercrime, and liability costs from data leaks and data loss.
• Legal Risks – Such as claims involving intellectual property theft, dishonesty, negligence, and fraud.
• Supply Chain Risks – Including dependencies, issues with transportation, and potential disruption.
• Stock Risks – Such as losses from theft or spoilage. You will have to consider additional risks if you routinely store or work with hazardous materials.
• Staff Risks – Including issues with compliance, training, skill gaps, and turnover.

How Create Your Risk Management Process

For every risk that you identify for your business, you should also identify the following:

• Who is at risk? Who might be affected by a particular risk, and how might it affect them? Consider whether each risk will affect staff, customers, contractors, delivery drivers, visitors, or a combination of the above. Also bear in mind that some people may experience risks differently. Someone with vision or hearing problems, for example, may find it harder to follow evacuation procedures.
• How likely is the risk? Plus, how severe would the outcome be? This could range from financial or reputational damages to serious injuries and death. After you have quantified your risks in this way, you can prioritise them based on their probability and severity. This will allow you to allocate your risk management resources effectively.
• How are you going to manage, mitigate, or eliminate the risk? The specific steps you take will of course depend on the risk in question. Though for every action you identify, you should also establish who is responsible for carrying it out, along with a timeframe for completing it, and a process for reviewing the risk assessment.

Managing Your Business Risks

Read our essential guide to risk management for businesses. We also have a number of specialist guides for certain kinds of businesses. Some of these offer general risk management advice, but others focus on specific risks, such as fire, theft, or cybercrime.

General Risk Management Guides

• Office health and safety checklist
• Warehouse health and safety checklist
• Warehouse racking safety
• Gym risk assessment guide
• Hotel risk assessment guide
• Museum safety and security risks

Cyber Risk Management Guides

• Cyber security for SMEs
• A guide to social engineering in cyber security
• Cyber risks for retail
• Marine cyber risks
• Cyber risks for hotels
• Cyber security for travel agents and tour operators

Fire Risk Management Guides

• Office fire risk assessments
• Warehouse fire safety risks
• A guide to common fire hazards in businesses and workplaces
• Fire safety in retail
• Hotel fire risk assessments

Get Tailored Insurance For Your Business

James Hallam is an independent Lloyd’s broker with access to a hand-picked selection of insurance providers.

We can help you understand the risks your business is facing, and we can advise you on how to effectively manage these risks. We can then help you access the business insurance you need, and we can show you how to evidence your risk management processes in order to make savings on the cost of cover.

Get in touch for a free quote today.

Shops across the UK are reporting a rise in retail theft. According to figures from the Office for National Statistics (ONS), over 500,000 incidents were reported in 2025 – 2026, a rise in 5% compared to the previous year.

In this post we will outline some of the underlying causes of this rise in retail theft, before exploring some ways you can help to prevent theft in your store.

Underlying Causes of Retail Theft Rising

There are a number of factors which affect crime rates, particularly theft. In 2026, we are seeing the following contributory factors:

• Cost of living crisis
• Organised crime
• Staffing issues
• Rise in self-checkouts

We’ll explore each of these individually below to find out more about the causes and how it may impact target items.

The Ongoing Cost of Living Crisis

The UK has been struggling with high inflation rates for a number of years, which greatly increased the cost of living for millions.

Rising food costs may have contributed to the increase in shoplifting. Baby formula is one of the most commonly stolen items in the UK, and this is likely because it is both essential and expensive.

Organised Crime

Some retail bodies claim that organised crime is driving a rise in retail theft.

Some of this may be relatively small scale, such as the thieves who steal premium cuts of meat to sell to pubs and other establishments. But some retailers have fallen victim to larger gangs that have targeted multiple stores in succession.

Even worse, this form of theft seems to be linked with rising incidents of violence and abuse against frontline retail staff.

Staffing Issues

Rising costs have forced many stores to cut staff hours, and the UK workforce as a whole has shrunk in recent years.

Fewer staff on the shop floor means that there are fewer people to look out for the signs of shoplifting, and more blind spots for thieves to operate in.

The Rise of Self-Checkouts

Many stores have started offering self-checkout services, partially as a way of managing costs, and partially as a way of offering a more streamlined experience to customers.

Some self-checkout areas feature systems designed to prevent theft, such as security cameras, and gates that will only open if the customer scans a code they receive after purchase. But nonetheless, the perceived lack of security around self-checkout areas may be fueling a rise in shoplifting.

Some customers find self-checkout systems confusing, which may mean they unintentionally take some items without paying. And while they may not be shoplifting in the strictest sense, this will still lead to losses for the store.

The Impact of Retail Theft on Stores

• Loss of profits – This is the most obvious impact of retail theft. Shoplifting costs the sector an estimated £2.2 billion a year.
• Rising costs – Shops may be forced to invest in added security measures to combat shoplifting, and some may raise their prices to offset their losses. These costs are passed on directly to customers. According to one report, shoplifting adds £133 a year to the cost of an average UK household’s shopping bill.
• Staff safety and wellbeing – As we mentioned above, many retail staff are facing an increased threat of violence and abuse from criminals. Beyond this, widespread theft can lead to stress, anxiety, and low morale.

How To Reduce Theft in Your Store

We have a number of guides on our site to help you address retail theft in your store:

• How to stop shoplifters and prevent theft
• How to reduce theft during busy periods
• Securing high-theft items in retail
• What to include in your shoplifting policies and procedures

It is also important to address the risks of employee theft in your store. Read our full guide to understanding and preventing employee retail theft.

Get The Right Cover For Your Retail Store

A specialist retail insurance policy can cover your store for many of the losses you may experience as a result of theft and other incidents, subject to policy terms, conditions and exclusions.

James Hallam is an independent Lloyd’s broker with an experienced team of insurance professionals who care about protecting your store.

Find out how we can help your shop today.

Slips, trips, and falls are a major issue for retail businesses, and there are severe penalties for shops that do not take the time to address the risks.

In this post we will explore some of the possible underlying causes of slips, trips, and falls in the retail environment. We will also outline how you can address these risks in your store.

What Causes Slips, Trips, and Falls in Shops?

There are a number of different causes for slips, trips and falls in shops, including:

• Clutter – Any stock or equipment left in walkways can create a trip hazard for both staff and customers.
• Liquids – A spilled liquid creates a slipping hazard. But customers may also slip on a freshly cleaned surface, particularly if there are no warning signs about, or if staff used too much cleaning product.
• Mats, Rugs, and Tiles – People may trip over a rumpled mat or rug, or a loose tile on the floor.
• Environmental factors – People may fail to spot slip or trip hazards if the lighting is poor. Or they may lose their footing if they do not see a step or a ramp.

How To Prevent Slips, Trips, and Falls in Your Shop

To help reduce and prevent slips, trips and falls in your shop, you should consider:

• Staff Training – Train your staff to spot the risks that could contribute to slips, trips, and falls, and make sure that everyone knows what to do to address these risks. Also make a point of recording and reporting any incidents that occur, specifying exactly what went wrong, and outlining the steps you will take to prevent further incidents.
• Stay On Top of Cleaning – Establish a cleaning rota and aim to clean up any spillages as soon as possible. It is also important to use the right cleaning products, and in the right quantity. Use the wrong product and you may not effectively remove a spillage. And use too much of a product and you could make the slipping hazard even worse.
• Make Customers Aware of the Risks – After cleaning, place signs warning customers of slippery surfaces. If there are any steps or ramps on the shop floor, make sure they are clearly indicated, with signage if necessary.
• Stay On Top of Maintenance – Replace faulty lighting, damaged floor tiles, and any other faults that could lead to accidents as soon as possible.
• Reduce Clutter – Never leave stock or cleaning equipment unattended in walkways. This goes for your storeroom as well as your shop floor. Your staff are just as liable to get injured by a slip, trip, or fall as your customers.

Risk Management and Insurance

Addressing the common causes of slips, trips, and falls should form a part of your wider risk management strategy. Read our full guide to risk management for retail businesses.

As we mentioned above, there are severe penalties for any store that does not take the time to mitigate slipping and tripping hazards. The Health and Safety Executive has numerous case studies of slips and trips that ultimately cost retail stores dearly.

Specialist retail insurance can help cover any legal costs or settlements that may arise as a result of an incident in your shop. You have a legal duty to get employers liability insurance to cover the risks for your staff, while public liability insurance can cover any incidents that affect customers, contractors, delivery drivers, and other members of the public.

There are strong links between risk management and insurance. Your insurer may require you to implement certain risk management processes as a condition of your cover. But at the same time, if you can evidence your risk management efforts, you may be able to make a saving on the cost of cover.

Get The Right Cover For Your Retail Store

A specialist retail insurance policy can help provide cover for losses you may experience as a result of slips, trips, falls, and other incidents, subject to policy terms, conditions and exclusions.

James Hallam is an independent Lloyd’s broker with an experienced team of insurance professionals who care about protecting your store. We can help you access the cover you need for your business, and we can also show you how to evidence your risk management in order to make potential savings on your premiums.

Find out how we can help your shop today.