Retailer insurance also known as retail insurance, is a type of general insurance product designed to protect small businesses and individuals from various liabilities and risks, It is directly sold to small businesses or individuals rather than wholesale business or larger employee groups.
It helps to manage risk and cover the losses occurred due to theft, property damage.
There are different types of Retailer Insurance:-
- Property insurance
- Commercial Property Insurance
- Liability Insurance
- Business Income Coverage
- Workers compensation insurance
- Commercial property insurance
Commercial property insurance is coverage that protects company physical assets from unexpected events like theft, fires, windstorm and vandalism.
Physical assets include building you own or rent, furniture, equipment inventory etc. used to support your day to day activity, It gives customers competitive advantage by foreseeing future risks and helps to stay focus on business to try and run smoothly.
It helps to provide financial protection against unexpected events like
- Fire damage
- Vandalism
- Natural disasters like earthquake, floods etc.,
- Collapsing of building
- Windstorm
- Water damage
To claim insurance coverage, you need to list out all the valuable assets and take an insurance plan according to your requirement.
The requirement can be bifurcated on plans to pay for losses on either Replacement Cost (RC) or Actual Cash Value (ACV).
Replacement Cost (RC) is the amount paid for repair, replace or the same property without depreciating its actual cost.
Actual Cash Value (ACV) is the amount paid to replace the property with similar style and quality but at a lesser cost.
Normally, the premium paid for ACV are lower than RC, as lower limit is used for deduction of depreciation
There are factors that are not included in business property insurance:
- Theft or Burglary
- Cybercrime and Computer Fraud
- Losses in transit
- Loss due to employee dishonesty
- Income loss
- How to evaluate Commercial property insurance cost?
According to market research business property insurance cost of USD. 67 covering the coverage limit of USD. 6,000 approx.
The policy prices are based on various factors like:
- The value of property
- The value of physical assets associated with business
- Level of coverage
- Replacement Cost (RC) or Actual Cash Value (ACV).
- Building construction
- Type of industry
- Location of property
- Risk profile
- Premium calculation
( Note:- Before purchasing the policy, make a list of all valuable assets along with their monetary term including the price of building you currently own, maintain a digitized backup of all receipts of items that are either purchased or upgraded. Taking photos and videos of places in business are helpful way to document the coverage )
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