retail insurance

What Is Retail Insurance?

The majority of retail businesses may encounter possible risks related to maintaining inventory, delivering orders, managing vendors, etc. These unexpected problems may ruin the businesses and cause loss of profit. In order to protect your businesses from negative impacts, it is necessary that you consider having retail insurance right on the very first day of the operation.

Here is an introduction to retail liability risk and how your retail insurance can support retailers

Difference between Retail insurance and Wholesale insurance

Retail insurance

Retail insurance are used businesses operating the retail industry who require commercial liability and property insurance. This type of insurance covers some common issues such as liability, stock, staff, public claims and so on.

The purpose of having this insurance is to protect retailers from losing assets. Besides, the insurance can also protect retailers from situations that may negatively impact their cash flow as well as the manufacturing process.

Retail store
Retail store

Wholesale insurance

On the contrary, wholesale insurance is a better option for companies that require a franchise policy related to their large number of outlets and the entire supply chain. Since they may easily encounter unexpected problems with the aspects of their businesses. Another reason for using wholesale insurance is that it protects wholesalers from problems arising during inventory importing and distributing processes.

What does retail insurance cover?

What does retail insurance cover?
What does retail insurance cover?


When it comes to insurance, liability should be taken into account by all shop owners. There are three levels of responsibility – including government, employer, and product liability The aspect of public liability in your policy mainly protects you from general claims such as lost or damaged inventory. Additionally, employee liability also protects retailers from employee claims and product liability covers injury and damage originating from products or services. 

Disruption of business

There are unexpected situations which would interrupt your business processes such as fire or disaster. The operation can not continue until the damage is restored, which may inevitably cause you loss of revenue. Your retail insurance policy would cover loss of earnings and protect the businesses from being shut down.


Insurance for retail stores typically covers any structural damage on your infrastructure. Possible external factors, including flood, fire, robbery and vandalism can hurt your business. The policy covers all repair costs, ensuring the original condition of your property is restored and business can be resumed as quickly as possible.

Legal protection

When establishing a business, you may have to take loads of responsibilities and certain legal actions may be brought against your business due to several reasons.

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Fees for insurance are commonly pretty pricey however, the insurance can protect your businesses from even pricier unnecessary expenses. In other words, the policy included in the insurance provides retailers with legal protection.


In order to protect your businesses against unexpected scenarios mentioned above, retail insurance is worthwhile investments. Hence, it is recommended that retailers should invest a certain amount of money in a retail insurance policy right at the early period of your operation.

Besides preventing negative impacts from external factors, retailers should also improve business processes by minimizing possible internal mistakes resulting from out-of-date software or manual methods. If you are looking for a solution that can tackle retail business problems, ConnectPOS may be perfect for you. Follow us for further information related to the retail industry!

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