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Benefits of Shopkeeper Insurance

Property Protection

This comprehensive policy gives protection to your building and content against the risk of fire, explosion, earthquake, impact damage, riots and other natural perils. Loss and damage due to burglary and housebreaking is also covered under this package policy. The electrical, electronic and mechanical equipment breakdown are also covered

Protection for Money

Loss of money in transit between the insured premises and bank and vice versa occasioned by theft, robbery or any other unpredictable event; money in counter and money in safe is covered under this policy so your business will not be interrupted due to these reasons

Liability Cover

This policy will cover you against the legal liability because of third party bodily injury or property damage. Shopkeeper's package policy will also protect you from the liability towards your Worker Compensation Act 1923 and Fatal Accident Act 1855


This comprehensive policy is cost-effective. Premium depends on the type of cover you have opted for, condition of the valuables, and provisions taken for keeping the valuables safe. If you have good security measures we lower your premiums appropriately

Quick Guide to Shopkeeper Insurance

What is Shopkeepers Insurance?

In our country, shops serve as a main source of income for many individuals. Therefore, it is essential to safeguard them from any damages and loss.

Shopkeepers' insurance, also known as Shop insurance, offers protection for the physical property and contents of a shop. This insurance is designed to cater to the needs of small to medium-sized shops and covers potential risks such as theft, natural disasters, accidental fires, and other similar incidents, much like fire insurance. By safeguarding the insured shop owner's property, shopkeeper insurance also protects their business interests against any unforeseen mishaps or risks.

Why is shop insurance required?

A policy for shop insurance is a form of insurance that offers monetary assistance to a shop proprietor in the event of theft, human-caused disasters, natural catastrophes, and other similar occurrences. The insurer and policyholder enter into a binding agreement, and the insurer refunds the sum for any event that caused loss or harm.

A form of insurance policy, shop insurance, offers financial assistance to shop owners in the event of theft, human-made disasters, natural calamities, and other similar circumstances. This insurance policy is a legally binding agreement between the insurer and policyholder, where the insurer provides compensation for any losses or damages resulting from such incidents.

Why is Shop Insurance Required?

Small to medium-sized shopkeepers operate on thin profit margins, which makes it challenging for them to handle situations such as burglary, fire, and other similar incidents that could harm their shop and its contents. To mitigate these risks, shop insurance policies were introduced to safeguard the shopkeeper's property and business interests.

A shopkeeper insurance policy shields small to medium-sized shopkeepers from potential risks and perils. It provides coverage for the shop's property and offers protection for the owner's business interests. Additionally, it includes coverage like that of a standard fire and special perils policy, which also covers any building losses resulting from an earthquake.

Shop insurance policies provide financial protection to the insured in the event of an accident or related incidents in their shop. This insurance plan is designed to safeguard the policyholder against potential financial crises resulting from such incidents.

Who needs a Shopkeepers Insurance Policy?

There are many individuals who may be uncertain about whether they require a shopkeepers insurance policy to protect their shop. To provide clarity, below is a list of individuals who should consider purchasing shop insurance plans:

  • Independent Shopkeepers – Individuals who rely on their shop as their primary source of income should consider insuring it through a shop insurance plan. This is because any unexpected loss or damage to the shop could directly impact their livelihood, and it is crucial to be prepared for such adverse circumstances.
  • Family Business Owners - If you own or operate a shop that sells various products like clothing, footwear, furniture, stationery, etc., it is advisable to obtain a shopkeepers insurance policy.
  • Shopkeepers with Shops in Prime Areas – If you own a shop located in one of the prime areas or markets of the city, it is essential to have insurance protection. This is crucial because prime locations are more susceptible to risks than other areas.
  • High-Risk Businesses – Certain types of shops or businesses are more vulnerable to risks or dangers than others. For example, a CNG fuel station is at higher risk of fires, while an electronic shop may face a greater threat of theft compared to a footwear shop. As a result, individuals who operate high-risk businesses should consider obtaining a shopkeeper insurance plan to protect themselves against any unforeseen circumstances.
  • Multiple Shop Owners – Shop insurance plans are not solely intended for individuals who own a single shop but also for those who own multiple shops. The likelihood of experiencing an emergency or crisis increases with the number of shops owned. Therefore, individuals who own multiple shops should ensure that each shop is covered by a separate policy.

Key Features & Benefits of Shop Insurance?

Some of the significant advantages of having a shopkeepers insurance policy are:

  • Protection of the Property - Shop insurance provides coverage for any loss or damage to the insured property resulting from fire, earthquake, explosion, natural calamities, and riots. It not only covers the shop but also its contents. In addition, damage resulting from housebreaking and burglary is included in the coverage. Furthermore, it also covers the breakdown of electrical, mechanical, and electronic equipment.
  • Liability Coverage - Certain policies offered under this plan also provide coverage for the legal liabilities of a third party. Furthermore, they include coverage for third-party bodily injuries and property damage. Certain Shop insurance plans also incorporate worker compensation in accordance with the 1923 act and the fatal accident act of 1855.
  • Money Protection - One of the significant benefits of shop insurance is the protection of money. The shop insurance policy covers the loss of the shopkeeper's money while it is being transported between the shop and the bank, in case of robbery, theft, or any other unexpected incident. This provides the insured with peace of mind, as both money in the safe and on the counter are covered under the policy.
  • Cost-Effective Plans - Shop insurance plans typically offer extensive coverage at a reasonable premium, making them a cost-effective option.

Types of Shops Covered by Shopkeepers Insurance

This insurance policy covers various types of shops, such as small and medium-sized shops, including kirana stores, convenience stores, and shopping malls. The list of shops that are covered under shop insurance plans include:

  • Electronics products – It includes shops and departmental stores that are involved in the sale of mobile phones, electronics, and accessories.
  • Personal Lifestyle and Fitness – Personal and lifestyle sectors' shops and complexes, such as spas, clothing showrooms, malls, gyms, etc., are covered under this insurance policy.
  • Grocery and General Stores – The category encompasses a wide range of retail establishments, including convenience stores and local kirana stores within your community, as well as economical supermarkets that offer a diverse selection of groceries and other merchandise.
  • Manufacturing and Processing – This encompasses all enterprises engaged in manufacturing and processing activities, such as factories and mills, which produce finished goods for commercial purposes.
  • Food and Eatables - It includes all shops and businesses that sell food or eatables, cafes, restaurants, food trucks, etc.
  • Home Repair Service - It includes all type of shops and small businesses that are involved in the repair services like motor garage, vehicle dealership etc.
  • Healthcare – This comprises all establishments and stores that offer healthcare services, including hospitals, diagnostic facilities, clinics, pharmacies, and so on.
  • Others - This category includes all other kinds of shops and businesses that are not covered in the above-mentioned category of shops.

Coverage Under the Shop Insurance Policy

A Shop insurance cover a range of entities such as:

  • Fire - Loss or damage to buildings and contents resulting from events such as fire, lightning, strikes, riots, storms, cyclones, floods, and similar occurrences are covered.
  • Burglary - Coverage is provided for any loss or damage caused by burglary or attempted burglary to the contents in your shop.
  • Money (Safe & Transit) - Loss of money due to burglary of cash kept in a safe place or in transit from the shop to the bank/ATM and bank to shop is covered. The premium is calculated based on the per sending limit defined by the insured.
  • Cheque Forgery - Losses arising from forgery or material alteration of cheques, drafts, or any negotiable instruments issued by you or in your favor are covered.
  • Machinery Breakdown - Offers protection against unexpected and abrupt physical damage resulting from mechanical or electrical failure, such as air conditioners, refrigerators, and photocopying machines.
  • Plate Glass Breakage - Loss or damage caused to fixed plain plate glass due to external and visible means resulting from an accident.
  • Signages - Glow signs, neon signs, or any other displays at your shop premises are covered for damages resulting from fire, accidents, riots, and floods.
  • Baggage - Provides coverage for the insured person's personal baggage that is lost, destroyed, or damaged while in their possession.
  • Marine Transit of Goods - The damages or losses incurred to goods during transportation from the godown to the shop.
  • Medical Expenses To Insured - This coverage offers benefits for medical expenses incurred by the proposer for hospital treatment resulting from any accident up to the sum insured limit.
  • Personal Accident - Coverage is provided for bodily injuries resulting from accidents leading to death or permanent total disability. The policy also covers ambulance charges up to Rs. 2000, and, in the event of death, for carriage of the dead body.
  • Public Liability - This coverage provides for legal liability on behalf of the proposer for accidental death or bodily injury to third parties, excluding resident employees or domestic staff, as well as accidental damage to third-party property.
  • Employer’s Liability - Covers shop owners against legal liability to their employees
  • Tenants Legal Liability - It covers legal liability imposed on you by the property owner due to property damage resulting from events like fire, earthquake, flood, riots, and so on.

What is Not Covered in a Shopkeeper Insurance Policy?

Losses resulting from the following events are typically excluded under a shop insurance policy:

  • War or warlike activities
  • Loss of earnings
  • Contamination or pollution
  • Radioactivity, waste, or nuclear fuels, ionizing radiations leading to contamination
  • Burglary resulting from explosions or fire, or committed by a member of the insured's household or business staff
  • Damage or loss of electronic equipment due to wear and tear, or defects or faults that were known to the insured or their representative at the start of the insurance coverage
  • Personal Accident liability arising from intentional self-harm, suicide, or injuries sustained while under the influence of alcohol.
  • Workmen's compensation liability that may arise from wilful or intentional violation of any statutory provision, fines, penalties, punitive, or exemplary damages.
  • Public liability that may arise from wilful or intentional violation of any statutory provision, fines, penalties, punitive, or exemplary damages.

How to Calculate Shop Insurance Online?

Calculating shop insurance online is a simple process that can be done by anyone. The premium for a shop insurance policy can vary between different insurers. To calculate the premium, one can follow the steps outlined below.

First, identify the type of business or shop, such as those involved in home repair services or healthcare. Next, consider the different types of coverage available. Enter the necessary details, including the name of the company, city, and contact number. Provide information on the value of stock and other items present on the premises.

  • In order to receive coverage for fire and related risks, burglary, and theft, you will need to provide specific information such as the value of inventory on the premises, the value of items in your store, and the amount of coverage desired (excluding the cost of land) for inventory, fixtures and fittings, goods, and other items.
  • To obtain money insurance coverage, the value of the money must be entered.
  • For pedal cycle cover, details such as the make and model, manufacturer name, year of manufacturing, frame number, and value of the pedal cycle must be provided.
  • To insure neon glass, the total value of the neon signs in the shop should be entered.
  • For fixed plate cover, the total value of the fixed plate glass in the shop premises should be provided.
  • To insure baggage, a brief description of the baggage under insurance should be given.
  • For business interruption cover, information on gross income, accountant's charge, indemnity period, Sales Tax number, and PAN number should be provided.
  • Other types of coverage include personal accident cover, fidelity guarantee cover, public liability cover, electronic equipment cover, workmen compensation cover, and breakdown of electrical appliances.

After entering all the necessary details, click on the option to calculate the premium. The premium amount for your will then be displayed on the screen.

Frequently Asked Questions

The shop and small business insurance plans that are available in India are- Fire cover, cyclones, storms, floods, tornadoes, typhoons and tempest, hurricane cover, machinery breakdown cover, burglary cover, infidelity cover, personal accident cover, malicious act, riot and strike cover, aircraft damage cover, implosion/ lightning explosion,

The insurance for shop owners or traders comprises eleven sections that provide coverage against various risks. The scope of this policy extends to cover the building, contents, money, pedal cycles, plate glass, signs, baggage, personal accidents, fidelity guarantee, liability, and business interruption.

Shop insurance provides coverage for any damages or loss that may be inflicted upon the insured property as a result of various man-made and natural factors. These factors include damage/loss resulting from fire, earthquake, explosion, natural disasters, and civil disturbances. Additionally, this insurance for traders also extends coverage to the contents of the shop. Any damage caused by burglary or housebreaking is also included in the coverage.
This type of business insurance for retailers is recommended for various types of small and medium-sized shops, including kirana stores, convenience stores, supermarkets and shopping malls. Put simply, a shop insurance covers broad spectrum of entities, offering insurance for grocery stores to insurance for supermarkets.
The policy offers additional coverage through add-on covers for Section I, which includes Standard Fire & Special Perils. These add-on covers include:
  • Escalation in the value of fixed assets
  • Coverage for losses due to terrorism
  • Reimbursement for loss of rent to the owner of the premises covered under this section
  • Payment for alternative accommodation rent following a loss under this section, in which the premises become uninhabitable and require temporary relocation.
  • Furthermore, the policy also covers burglary and housebreaking theft.


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