Buying insurance and security considerations
Shops have always been the target of thieves, and since the appearance of rows of shops in the early 19th century, they have presented their owners with various security considerations in detecting organized crime. Insurance companies insisted on most of these security requirements before underwriting the risk.
It’s no different risk for insurers today, except that the types of assets to protect and the security considerations that retail outlets must manage have changed quite a bit over the years. Also today, all insurance companies when offering shop insurance to retailers will insist on what is known as a ‘minimum level of security’, for the policy to be valid.
The responsibility for securing a store building to the minimum level of security will generally rest with a property owner. If the store is owner-occupied, then the retailer will require a comprehensive store insurance policy for buildings and contents.
The building section of the policy will insist with clauses and terms that certain security features are implemented to deter thieves. These typically include double mortise locks on doors and windows and bars or bars where applicable.
Most commercial premises are leased or leased and in these cases it is advisable to refer to the lease or lease agreement of the landlord, in regards to establishing responsibility for insuring the buildings and insuring the premises.
Tenants will be most concerned with protecting store fixtures, inventory and store content, however tenants also have an important role to play in ensuring that store premises are safe and will be responsible for providing security additional. Store contents policies generally also cover any improvements a retailer has made to the interior of a building and include a fixed level of compensation for this.
There are many shops insurance packages on the market that offer a selection of building and/or contents coverage to choose from as part of a larger comprehensive package suitable for both homeowners and renters.
The store package includes coverages for risks such as business interruption, liability and employers’ coverage for store staff, and a variety of legal and staff protection insurance coverages that may occur as a result of an attack. to the premises or a break-in.
All store insurance policies will ask at the quote stage for the security levels that currently exist for the store, however, this largely depends on the type of business that is carried out in the store premises. Insurance companies will need to know the type of locks and bolts used, alarms installed, CCTV and whether security patrols are used.
Many shops insurance companies will insist that certain approved burglar alarms be installed before offering to underwrite the risk. If the store sells high-risk products, such as high-value electronics or alcohol and tobacco, most insurance companies will insist on additional security and require sum insured levels to be defined for each type of high-risk action.
The premium paid for a shop insurance policy will often depend on the security devices in place. These devices, while often an expensive outlay initially, can save money in the long run, as generous discounts are available when store security meets all insurer recommendations. This is especially true if the store is in a high-risk area for theft where the insurance company will undoubtedly set higher minimum security requirements.