Shopkeeper Insurance: Coverage, Claim & Exclusions

For a businessman running a shop, any disaster or calamity destroying the shop or its contents can lead to a big loss. These are the times when a shop insurance policy can help in compensating the incurred losses. Thus, a shopkeeper insurance helps minimise the effects of risks regarding loss or destruction of the contents of the shop.

What is Shopkeeper Insurance?

A shopkeeper insurance policy provides coverage to small and medium shop owners against any damage or loss caused to the shop or its content due to unfortunate events like fire, flood, earthquake, riot, burglary, etc. It also takes care of liability claims.Thus, a shop insurance policy provides peace of mind and helps handle any untoward incident with ease.

What all Shopkeeper Insurance Covers?

Mentioned below are the various coverage provided under shopkeeper insurance:

• Loss to building and its contents as per Standard Fire & Special Perils Policy including Earthquake Risk
• Loss or damage to the contents by housebreaking excluding money and valuables
• Loss of money due to accident between any two places within a radius of 25 km from the insured shop
• Loss or damage to the neon sign by any external means, such as an accident
• Financial loss due to fraud and dishonest act of salaried employees
• Legal liability to employees
• Loss or damage caused by fire or burglary to building and its contents

Add-on Covers

There are some add-on covers or additional benefits which the policyholder can avail on extra payment. Any destruction or loss due to the following reasons are covered here:

• Earthquake
• Terrorism
• Escalation

Eligibility Criteria

Any individual who owns a medium or small shop can avail shopkeeper insurance policy. There is no such rigid eligibility criterion to purchase the insurance plan.

Claim Process for Shopkeeper Insurance Policy

Mentioned below is the claim process for shopkeeper insurance:

• Intimate the insurance provider about the claim within 24 hours of loss or damage
• Submit the duly filled in claim form to the surveyor along with other related documents
• A surveyor will analyse the claim along with the supporting documents
• After successful verification, the insurer will settle the claim
• Payment will be credited to the policyholders bank account as soon as possible

Time Taken to Settle Claims

Under Shopkeeper Insurance policy, claims are usually settled within 30 days from the date of the receipt of last document submitted. No claim will be settled if any document is missing or any fraudulent activity is involved.

Exclusions under Shopkeeper Insurance

Certain cases are not covered by insurance providers. These are called exclusions. Some of these situations for which you cannot file claims are:

• Damage caused due to war or war like operations
• Loss or damage to bonds, securities, precious jewellery, cash, livestock and valuables
• Salesman and commission agents under fidelity guarantee
• Loss due to wear and tear of electronic equipment
• Liability to family members and employees
• Absence of immediate notice to the police authorities and to the company along with FIR

Renewal Process

Mentioned below is the general renewal process for shopkeeper insurance. The actual process varies for different providers.

• Visit the official website of the insurer
• Click “Renew Online”
• Enter policy number and date of birth
• Click “Payment”
• Make payment through the different available modes

Companies offering Shopkeeper Insurance in India

Here are some insurance companies providing shopkeeper insurance policy in India:

• ICICI Lombard
• Oriental Insurance
• TATA AIG
• United India Insurance

Advantages of Shopkeeper Insurance Policy

Here are some advantages of a shopkeeper insurance plan:

• Protection of the property: A shop insurance plan provides protection to the shop against any unfortunate event, such as fire, earthquake, explosion, natural and man-made perils. This policy also covers breakdown of any electronic equipment
• Cost effective: This plan is cost-effective as policyholders are required to pay an affordable premium for comprehensive coverage
• Money Protection Cover: If the money of the policyholder gets lost in transit within the radius of 25 km from the insured shop, the insurer will provide coverage against the unfortunate event

FAQs

Q1. Is Shopkeeper Insurance available online?

Yes. Shopkeeper Insurance can be purchased online by simply visiting the insurer’s official website.

Q2. What are the modes of payment available for premium payment?

Policyholders can opt for online and offline mode both to make premium payment. Through online mode, debit card, credit card, net banking, ECS can be used. On the other hand, individuals are required to visit the branch office of insurer and make payment through cash for the premiums.

Q3. Are restaurants and café covered under shopkeeper insurance?

No. Restaurants and café are not covered under this insurance.