What retail shops and coffee shops should know about shop insurance

Running a shop or coffee spot on the high street isn’t just about great products, good coffee, and footfall, it’s also about being protected from the unexpected. Whether it’s a burst pipe, a delivery gone missing, or damage to your carefully curated interior, having the right insurance in place is crucial. But beyond basic coverage, many business owners aren’t aware of how much more their policy can (and should) do.

Here’s what you, as a retail shop owner, should know when it comes to protecting your business:

Tailored business descriptions matter

Too often, businesses are insured under broad or inaccurate classifications like “retail” or “food service”, which can lead to complications if you need to make a claim. Your insurance should reflect the unique nature of your business. The way you’re described on your policy affects not only your premiums but also the type of incidents you’re covered for.

For example:

If you run a coffee shop and decide to intertwine other sales elements to your customers, perhaps you stock some branded merchandise or sell small gifts and artwork, you must disclose this information to your insurer. If you don’t, it could be listed as a non-disclosure and can make the difference between a claim being approved or declined should you experience theft or damage.

There’s a distinct insurance difference between a classification of a coffee shop and a café because the cover you require is different based on the services you provide.

What is a latent defect in a building?

A latent defect in a building can be anything from structural defects such as cracking of floor slabs or walls, ingress of water, subsidence or any defect that affects the structural integrity of the building. There could be issues with the basement tanking which allows water to penetrate the building causing damage or inadequate foundations causing subsidence.

Fit-out and fixtures: More valuable than you think

From lighting and furniture to custom counters and décor, you put your all into creating a business that you are proud of. However, not all insurance policies automatically cover these fit-out costs before your shop is fully open and operational, especially if they’re considered “tenant improvements.”

Make sure your insurance includes fit-out cover, which protects the physical alterations you’ve made to your premises. This is particularly important if you’re renting the property, as these improvements often aren’t covered by your landlord’s insurance.

Goods in transit: protection beyond the premises

You might have comprehensive cover inside your shop - but what happens when your stock is on the move? Whether you receive daily deliveries of ingredients or send out products to customers, like a floral delivery, goods in transit* cover ensures your items are protected while being transported.
*This is an optional add on.

Trace and access: Don't let hidden issues drain your finances

You might have comprehensive cover inside your shop - but what happens when your stock is on the move? Whether you receive daily deliveries of ingredients or send out products to customers, like a floral delivery, goods in transit* cover ensures your items are protected while being transported.
*This is an optional add on.

Public and Employers' liability: Your front-line defence

If a customer trips over a loose cable in your shop or a member of your staff suffers an injury while working, the financial consequences can be significant. That’s where public liability and employers’ liability come in.

Public liability covers injury or property damage claims made by third parties (like your customers).
Employers’ liability protects you against claims made by employees due to injury or illness caused by their work.

Business interruption insurance: Keeping you afloat

A burst pipe, fire, or even criminal damage can shut your doors temporarily, but your outgoing may not change, such as rent, electricity and stock orders. Business interruption insurance covers lost income and fixed expenses during the time your business can’t operate.
 

Theft and vandalism: A high-street reality

Unfortunately, many retail shop premises are vulnerable to break-ins or vandalism, particularly at night. Ensure your policy covers:

- Damage to shopfronts, signage and windows
- Loss of takings, if money is stolen on or off premises

Having CCTV, alarm systems, and secure locks can help to reduce your risk of theft and vandalism.

Insurance isn’t just a tick-box requirement - it’s a safety net designed to keep your business resilient. For high-street shops and coffee shops, a one-size-fits-all policy often leaves gaps that only become apparent in a crisis.

At Howden, we take the time to understand your business needs, and with our bespoke Shop Insurance policy with Aviva, we can support you and your business to ensure the best cover and protection is in place. That means you can focus on what you do best - serving your customers and growing your business.