A shopkeeper policy is a type of general insurance that protects a shop’s property and contents from a variety of risks.It can help small business owners and retailers focus on growing their business.
Who can take Shopkeeper’s Policy?
Shopkeeper, small to medium sized, shop owned or rented provided it should be of pucca construction can take this policy.
Here are some things to consider about shopkeeper policies:
- Coverage
Shopkeeper policies can cover a range of risks, including fire, burglary, money insurance, strike, malicious damage, accidental breakage, and more. - Exclusions
Some things that are usually not covered by shopkeeper policies include damage caused by war, nuclear radiation, self-fermentation, natural heating, spontaneous combustion, and heating/drying processes. - Discounts
Some policies offer discounts for taking coverage under more than a certain number of sections. - Repairs
Some policies require repairs to be started within a reasonable time after damage occurs, and completed within a reasonable time, usually within 12 months.
Salient Features of the policy:
1. The Shopkeeper Insurance Policy may be taken for any shop of Pucca construction where the cumulative value for building and contents is up to Rs.2 (Two) Crores.
2. 15% of the sum insured is waived for the purpose of under insurance for section I.
3. Shops selling confectionery and sweet meats items can be covered provided no process of manufacturing is done in the shop premises.
4. Dry Cleaner shops may be covered provided no process is carried out in the shop premises.
5. Electrical & electronic goods like CCTV, Personal Computer and related equipments installed in shop of Insured may also be covered against the risk of fire, housebreaking, electrical or mechanical breakdown.
6. For taking coverage under more than four sections 15% (fifteen percent) discount is allowed. For more than six sections 20% (twenty percent) discount is allowed.
7. policy carries varying excess applicable to different sections.
8. Terrorism risk may also be covered at additional premium at the opinion of Insured and sole acceptance of company.