Book Shop Insurance
Compare book shop insurance quotes from a panel of UK business insurers after completing one short form.
- Cover for stock, equipment, premises and furnishings
- Employers' liability is a legal requirement if you have staff
- Live quotes to compare online from a panel of UK insurers
Book Shop Insurance in short
Book shop insurance is a business insurance policy built around the risks of running a shop that sells books. Depending on the level of cover you choose, it can protect your stock, equipment, premises and furnishings, as well as your employees and customers. If you employ staff, employers' liability insurance is a legal requirement, and your mortgage lender or landlord may also have requirements around buildings cover.
Key facts
- Employers' liability insurance is a legal requirement for almost every book shop that employs staff.
- Stock insurance typically pays out to replace damaged, lost or stolen stock at cost price, not retail price.
- If you own your premises with a mortgage, the lender may require you to hold commercial buildings insurance.
- If you rent, buildings insurance is usually the landlord's responsibility, although the cost is often passed on to the tenant.
- Contents insurance protects the equipment and furniture inside your shop against theft, damage and loss.
Michael's take
Having spent more than 20 years in finance and insurance, the thing I would stress to any book shop owner is stock cover. Your shelves are the business, and because claims are settled at cost price rather than retail, make sure the sum you insure reflects what you actually paid for the stock on the floor. Get employers' liability in place first if you have staff, then build stock, contents and buildings cover around it.
What is book shop insurance?
Book shop insurance is business insurance arranged around the risks of running a shop that sells books. Rather than being a single product, it is usually a policy made up of several types of cover, and what it protects depends on the level of cover you put in place.
A book shop policy may include cover for:
- Stock
- Equipment
- Premises
- Furnishings
- Employees
- Customers
Some of these covers are optional and some, such as employers' liability, are required by law if your shop has employees. Our shop insurance guide covers the broader picture for retail businesses.
Do I need insurance for my book shop?
Yes and no: some cover is a legal requirement, some may be required by a lender or landlord, and the rest is your choice. If you employ staff, you will almost certainly be legally required to have employers' liability insurance, which protects your business should an employee suffer injury or illness as a result of working for you.
If you own your business premises with a mortgage, the mortgage provider may require you to have commercial buildings insurance. If you rent, it is usually your landlord's responsibility to arrange buildings cover, but it is always advisable to check this with them.
Beyond those requirements, covers such as stock insurance, contents insurance and public liability insurance are optional, but many book shop owners choose them because a single unexpected event could otherwise close the business.
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What does book shop insurance cover?
Book shop insurance can cover your stock, the contents of your shop, the building itself and your legal liabilities to employees and customers. The main elements are:
- Stock insurance – typically protects you if your stock is damaged, lost or stolen. The policy pays out to replace the stock at cost price, not retail price.
- Contents insurance – protects the equipment and furniture inside your shop, typically against theft, damage and loss.
- Business buildings insurance – covers you if your book shop premises is damaged or destroyed.
- Employers' liability insurance – protects your business if an employee suffers injury or illness as a result of working for you.
- Cover for customers – a book shop policy may also include protection relating to the customers who visit your premises.
Given the very nature of a book shop, stock insurance in particular could mean the difference between your business surviving an unexpected event and having to shut down.
What is not covered by book shop insurance?
Book shop insurance only covers the risks you have chosen to include, so anything outside the level of cover you select will not be protected. For example, if you do not add stock insurance, damaged or stolen books will not be replaced, and if you do not add contents insurance, your shelving, tills and other equipment are not covered.
Stock claims are also settled at cost price rather than retail price, so the policy will not pay out the amount you would have sold the books for. If you rent your premises and your landlord holds the buildings insurance, your own policy will not cover damage to the building itself, which is why it is worth confirming with your landlord exactly what their policy includes.
How much does book shop insurance cost?
The cost of book shop insurance depends on the level of cover you put in place, because the policy is built from several separate covers and you only pay for the ones you include. A shop that adds stock, contents and buildings cover will pay more than one that holds only the legally required employers' liability insurance.
If you rent, remember that the landlord often passes the cost of buildings insurance on to the business owner, so that may already be part of what you pay even though the policy is not in your name. Comparing quotes from several insurers is the simplest way to see what your particular combination of covers will cost.
Is employers' liability insurance a legal requirement for a book shop?
Yes. If your book shop employs staff, you will almost certainly be legally required to have employers' liability insurance. It protects your business should an employee suffer injury or illness as a result of working for you.
It is the one part of a book shop policy that is not optional for an employer, so it is usually the starting point when you build your cover, with stock, contents, buildings and public liability added around it.
How do I compare book shop insurance quotes?
Complete one short form with brief details about your business, and you will see live quotes to compare online from a panel of UK business insurers. You can then look at the covers and prices side by side and, if you are happy to proceed, purchase the cover that suits your shop.
Quote Goat provides access to this comparison service; it does not sell or arrange the insurance itself. Having the right cover in place can give you the peace of mind to run your business knowing you are protected against many of the situations a shop can face. Get started by clicking the quote buttons on this page.
Frequently asked questions
Is book shop insurance a legal requirement?
Only part of it. If your book shop employs staff, employers' liability insurance is almost certainly a legal requirement. Other covers such as stock, contents and public liability insurance are optional, although a mortgage lender may require buildings insurance if you own the premises.
Does book shop insurance cover my stock?
It can, if you include stock insurance. This typically protects you if your stock is damaged, lost or stolen, and the policy pays out to replace the stock at cost price rather than retail price.
Do I need buildings insurance if I rent my book shop?
Usually not in your own name. When you rent, it is normally the landlord's responsibility to arrange business buildings insurance, although the landlord often passes the cost on to the tenant. It is always advisable to confirm this with your landlord.
What does contents insurance cover for a book shop?
Contents insurance protects the equipment and furniture inside your shop, typically against theft, damage and loss. It is separate from stock insurance, which covers the books you sell.
What is employers' liability insurance for a book shop?
Employers' liability insurance protects your business should an employee suffer injury or illness as a result of working for you. If your book shop has staff, you will almost certainly be legally required to hold it.
How are stock claims paid out on a book shop policy?
Stock insurance typically pays to replace damaged, lost or stolen stock at cost price, not retail price. That means you receive what the books cost you to buy, not what you would have sold them for.
How do I get book shop insurance quotes with Quote Goat?
You complete one short form with brief details about your business and then compare live quotes online from a panel of UK business insurers. If you are happy with a quote, you can go on to purchase the cover. Quote Goat provides access to the comparison service rather than selling the insurance itself.
Business Insurance for your business
Other pages that may fit your business, and guides on this topic.
Written by Michael Foote, Insurance & Finance Expert
Founder of Quote Goat, with over 20 years' experience in finance and insurance. He has appeared on TV and in Forbes, The Telegraph and The Metro.
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Quote Goat provides access to a business insurance comparison service operated by Seopa Ltd. This page is general information, not advice. Always check the policy documents to make sure the cover meets your needs.