CoverMapWhat is shop insurance?
Shop insurance, also called retail insurance, is a bundle of business covers built for businesses that sell goods to the public. Most insurers sell it as a package: you pick the parts you need, set a limit for each, and pay one premium. A small shop with no staff might only want public liability and stock cover. A shop that owns its building, employs people and sells online might need most of the list below.
Legal vs optional cover: what a shop must have
Under the Employers’ Liability (Compulsory Insurance) Act 1969, employers must insure against liability for injury or disease to their employees arising out of their employment. The HSE’s guide (published 2012) calls it “compulsory insurance”. GOV.UK sets out the detail:
- You need employers’ liability (EL) insurance as soon as you become an employer.
- The policy must cover you for at least £5 million.
- You can be fined £2,500 for every day you are not properly insured.
- You must display your EL certificate where staff can see it – at the shop, on your website or on an intranet – and show it to inspectors. If you don’t, you could be fined £1,000.
GOV.UK lists exceptions. You don’t need EL if your only employees are close family members, such as a spouse, civil partner, parent, child or sibling, or for someone based outside England, Scotland and Wales.
| Cover | Legally required? | Who it protects |
|---|---|---|
| Employers’ liability | Yes, if you employ staff (min £5m) | You, against claims from staff |
| Public liability | No | You, against claims from customers and visitors |
| Product liability | No | You, against claims about goods you sell |
| Buildings | No | The shop premises, if you own or must insure them |
| Contents and stock | No | Fixtures, fittings, equipment and goods for sale |
| Business interruption | No | Lost income while you can’t trade |
| Glass, money, goods in transit, cyber | No | Specific risks, often add-ons |
Source: GOV.UK Employers’ liability insurance (checked October 2026); insurer and broker pages listed below.
What each part of shop insurance covers
Wording varies between insurers, so the definitions below come from their own product pages. Always check the policy document for limits and exclusions.
Public liability
Simply Business describes it as cover in case your shop and products cause an injury or property damage. Hiscox says it covers both high-street and online retailers. Limits vary: AXA offers up to £5 million, while NFU Mutual starts from £2.5 million.
Product liability
Coversure describes this as cover if “a product you sell causes injury or damage to a customer”, including compensation and legal fees.
Employers’ liability
Covers claims from staff who are injured or made ill by their work. AXA and NFU Mutual both offer £10 million of EL, double the legal minimum.
Buildings
Pays to repair the structure of your shop after an insured event such as fire, flood, storm or vandalism (Hiscox, Lloyds Bank). If you rent, check your lease to see who insures the building. Our guide to buildings vs contents insurance explains the split, and landlords can see landlord insurance.
Contents and stock
Contents covers fixtures, fittings and the equipment you use to run the shop. Stock covers the goods you sell if they are lost, stolen or damaged (Simply Business, Gallagher). Some insurers raise stock limits automatically for busy periods: AXA offers a free 30% seasonal stock increase at dates you choose, and NFU Mutual an automatic 25%.
Business interruption
Covers lost income and extra costs while your shop is closed or trading at reduced hours after an insured event such as fire or flood (Coversure, Lloyds Bank). NFU Mutual’s retail policy also covers losses caused by damage at a customer’s or supplier’s premises, up to 15%.
Glass and shopfront
Pays to repair or replace broken windows and shopfront glass, and sometimes signage (Coversure). AXA includes a 24-hour glass replacement service.
Money cover
Covers theft or loss of takings. NFU Mutual covers money on your premises during business hours and while it’s being taken to the bank, up to £5,000. AXA covers loss of money up to £2,500.
Goods in transit
Covers items stolen, lost or damaged on the way to or from your premises or warehouse (Lloyds Bank). AXA includes it in its shop insurance; NFU Mutual covers up to £10,000.
Cyber and data
Hiscox says cyber cover helps protect a retailer’s email accounts, databases, e-commerce sites and payment channels. It is most relevant if you take card payments or sell online.
Other common add-ons include legal expenses, personal accident, portable equipment and equipment breakdown (Hiscox, Simply Business).
How much does shop insurance cost?
No insurer we checked publishes a true UK average for shop insurance. Simply Business instead publishes a “from” price based on the cheapest 10% of policies it sold. Here are its 2026 figures.
| Simply Business figure | Price | Basis |
|---|---|---|
| Shop insurance, “from” | £9.95/month | 10% of shops paid £119.39 a year or less, 1 Jan – 30 Jun 2026 |
| Shoe shop quote (Zurich) | £509.93/year | Included business interruption and stock |
| Small off-licence quote | £854.72/year | Sole trader, no employees, Huntingdonshire |
Source: Simply Business shop and retail insurance pages, checked October 2026. Retail “from” price based on £10m employers’ liability and up to £2m public liability.
Simply Business’s example quotes vary widely, from £115.20 a year for a small clothes shop (Churchill) to £854.72 for the off-licence above, so the covers and limits you choose make a big difference.
Check the excess too. On its retail page, Simply Business shows excesses ranging from £100 to £2,500 for public liability, £200 to £4,000 for buildings, £100 to £500 for stock and £50 to £750 for contents. Employers’ liability had no excess.
Retail crime: why theft cover matters
Retail crime figures give useful context for theft-related cover.
- Police-recorded shoplifting: ONS figures published in July 2026 show 507,086 shoplifting offences in England and Wales in the year to March 2026, down 4%. The year before, offences hit 530,643, the highest since current recording began in 2002/03.
- Recording change: Since April 2025, police record an incident as robbery of business property whenever an offender uses or threatens violence. ONS says this partly explains the shoplifting fall. Business robberies rose 91% to 29,669.
- BRC Crime Report 2026: Published in February 2026, it counted 5.5 million detected theft incidents and nearly £400 million lost to theft, with the true cost “likely much higher”. Violence and abuse fell about a fifth to 1,600 incidents a day. Retailers have spent more than £5 billion on crime prevention over five years.
One catch matters here. AXA’s claims guidance (undated) says most commercial policies need evidence of forced and violent entry or exit for a theft claim to be accepted. An AXA product document (also undated) gives shoplifting from premises open to the public as an example of theft without forced entry that isn’t covered.
Security requirements insurers ask for
Insurers can make security a condition of cover. AXA’s undated claims guidance says it will tell you at the start of the policy if you need specific security measures or an alarm, and that failing to comply could mean you aren’t covered for theft even after a forced entry.
Security firm Rossells (August 2025) describes what insurers commonly look for:
- Alarm: Alarms meeting BS EN 50131. Bells-only systems are rarely acceptable for commercial cover. Higher-risk shops may need a monitored alarm with police response. See our alarm systems guide.
- CCTV: Clear, evidential-quality footage covering entrances, exits, stockrooms and tills, with recordings kept ideally 30 days or more. Our CCTV guide covers the basics.
- Locks and doors: Locks meeting BS3621 or BS8621; Rossells calls old shutters a red flag.
- Maintenance: Rossells warns that unmaintained systems can invalidate claims.
Requirements differ between insurers, so read the security conditions in your schedule before you buy.
How to compare shop insurance
- Start with the legal minimum. If you employ anyone outside the exempt family list, you need EL of at least £5 million.
- List what you would lose. Value your stock at its peak, your fixtures and equipment, and how long you could survive closed.
- Check who insures the building. If you rent, check your lease.
- Match the extras to your shop. Glass for large shopfronts, money cover if you bank cash, goods in transit if you deliver, cyber if you sell online.
- Compare like for like. Line up limits, seasonal stock increases, excesses and security conditions, not just the price.
- Read the theft wording. Look for forced-entry and alarm conditions before you rely on the cover.
For an overview of other policies, see our insurance guides.
Frequently Asked Questions
Is shop insurance a legal requirement in the UK?
Only employers' liability insurance is a legal requirement, and only if you employ staff. GOV.UK says it must cover at least £5 million. Other shop covers are optional.
What is the fine for not having employers' liability insurance?
GOV.UK says you can be fined £2,500 for every day you are not properly insured, and £1,000 if you don't display your certificate or show it to inspectors.
How much does shop insurance cost?
Simply Business says 10% of shops paid £119.39 a year or less between 1 January and 30 June 2026 (from £9.95 a month). Example quotes it lists include £509.93 a year for a shoe shop with business interruption and stock cover, and £854.72 for a small off-licence. Checked October 2026.
Does shop insurance cover shoplifting?
Usually not for everyday walk-out theft. AXA's claims guidance (undated) says most commercial policies need evidence of forced and violent entry or exit for a theft claim to be accepted.
Do I need public liability insurance for a shop?
It isn't described as a legal requirement on GOV.UK. Simply Business describes it as cover in case your shop and products cause an injury or property damage.
Do insurers require an alarm or CCTV in a shop?
Often. AXA's claims guidance (undated) says it tells you at the start of the policy if specific security measures or an alarm are needed, and not complying can mean theft isn't covered. Requirements vary by insurer.
What is business interruption insurance for shops?
It covers lost income and extra costs while your shop is closed or on reduced hours after an insured event such as a fire or flood.
Sources
- GOV.UK – Employers' liability insurance (updated Oct 2026)
- GOV.UK – When you do not need employers' liability insurance
- HSE – Employers' Liability (Compulsory Insurance) Act 1969 guide (2012)
- Simply Business – Shop insurance (2026 data)
- Simply Business – Retail insurance (2026 data)
- Hiscox – Shops and retailers insurance
- AXA – Shop insurance
- NFU Mutual – Retailers insurance
- Coversure – Shop insurance (Aug 2026)
- Lloyds Bank – Shop insurance
- IBTimes – ONS: shop robberies up 91%, shoplifting down 4% (23 Jul 2026)
- Express & Star – Crime in England and Wales (24 Jul 2025)
- ITV News – BRC: abuse against retailers falls by a fifth (24 Feb 2026)
- AXA – Making claims clear: theft, forced and violent entry
- Rossells – What insurers want to see in your security system (Aug 2025)