In recent years, the cost of insurance has risen for all UK businesses, including retailers.
In this post we will examine some of the underlying causes of the rise in shop insurance costs. We will also explain how you can help to bring down the cost of your shop insurance.
Why Is Shop Insurance Going Up?
UK shops are dealing with rising insurance costs as a result of claims inflation. This means that it is costing more for insurers to settle all kinds of claims, regardless of how often these claims occur.
What is Causing Claims Inflation?
A number of factors are driving claims inflation:
- Global supply chains have been hit by major disruptions in recent years, which has increased the cost of many essential materials, including timber, steel, and insulation.
- Workforce shortages have contributed to rising labour costs. Which drives up construction and repair costs and lead times.
This will increase the average cost of settling an insurance claim, and insurers will pass these increased costs onto their customers in the form of higher premiums.
When it comes to the retail sector in particular, insurers may be worried by a rise in shoplifting and other crimes. Higher crime rates may make it more likely that shops will make claims on their policies, which will further contribute to claims inflation while driving up the cost of cover for everyone.
How To Reduce Shop Insurance Costs
The good news is that, if you can demonstrate to your insurer that you are taking steps to reduce the risks of shoplifting and other sources of loss, then it may lead to lower insurance premiums.
But in short, here are some measures that might help you reduce your shop insurance costs:
- Install security systems including locks, shutters, safes, alarms, and CCTV.
- Invest in staff training to help them spot the signs of theft, and to help them stay safe on the job.
- Maintain a good cleaning schedule, which can reduce the risks of slips, trips, and falls.
- Stay on top of all ongoing servicing and maintenance procedures for your electrical equipment, security systems, and fire safety systems.
- Implement an effective stock management system so that you can identify sources of loss as early as possible. Also be sure to store any high value items as safely and securely as possible.
For more, be sure to read our full guide to designing and implementing policies for addressing shoplifting and other theft.
How We Can Help You Reduce Your Shop Insurance Costs
Remember that not all insurers will charge you the same for your cover. It always pays to shop around and compare quotes. And while it is vital that you avoid underinsurance, it is just as important to avoid overinsurance – paying too much for cover you do not really need.
At James Hallam, we can help you find the dedicated shop insurance you need at a competitive price. We will take the time to get to know you and your business, so that we can fully understand all of the risks you are facing. We will then find you an insurance package that meets all of your requirements, including your budget.
We can also advise you on how to effectively evidence your risk management policies and procedures so as to bring down the cost of your cover.