Ask the expert: Forum Insurance

Having the correct insurance is the best policy for retailers

GETTING the right insurance policy is a key business decision for c-store retailers. Here, Niraj Mamtora, head of partnerships at Forum Insurance, provides some valuable insights.

How important is it that retailers seek out bespoke coverage that’s tailored to the needs of their business?

Standard insurance packages are exactly that: standard. Your business is different from every other business, from the risks you face to the profits you make. 

You don’t want to pay for cover you don’t need, and you also don’t want to be without the correct cover. A tailored insurance package will save you money and protect your business long-term.

What are the key questions retailers should be asking insurance providers to ensure they get the right coverage for their business?

When you’re searching for insurance, you should compare the policy wordings as each policy will cover you differently. Take good care to note the clauses, exclusions and cover limits. 

The policy wording is the terms and conditions and definitions of what is and what is not insured. Choosing the right policy wording may seem more expensive but it has protected a number of our clients in the event of a claim.

Cutting back on your insurance cover, especially in a period of uncertainty, is like throwing parachutes out of a plane to reduce the weight, or throwing life vests out of a ship taking on water to stop it from sinking. Insurance is the only truly effective method of mitigating risk.

What are the consequences of a lack of coverage or inadequate coverage do to a business?

Many people don’t know this but having inadequate coverage (underinsurance) makes claiming even worse. For example, if you have £50,000 of contents but you only insure for £25,000 that means you’re only insured for 50% of the full value.

So when making a claim for a loss, the insurer may only pay 50% of the value of the claim, even if your claim amount falls within the limit of insurance. The remaining 50% loss would not be covered by your insurance. 

Many retailers have invested in refurbishments and store upgrades. What implication could this have for their insurance coverage?

The answer is always to review your insurance cover accordingly. If you’ve made a change to the building, fixtures or fittings then the buildings insurance is impacted. If you are responsible for the building insurance this will need to be updated. If you’re unsure what the updated value should be, seek a RICS surveyor or give your insurance broker a call. 

If you’ve installed a new upgrade, such as a customer-operated coffee machine, the supplier of the machinery will require you to insure their equipment as part of your contract.

They will want their equipment named on your insurance policy and covered adequately. The same goes for vending machines, car washes, or a fast-food restaurant in your premises.

Delivery services have boomed during lockdown. Do retailers need a new or amended policy to cover any mishaps while offering home-delivery?

If you’re using a service such as Deliveroo or Uber Eats and they collect from your store, you don’t need to amend your insurance. If you or your staff deliver goods from your store then you’ll need to correctly insure your vehicle and the goods for delivery.

Why should retailers use Forum Insurance instead of other insurance providers?

We have long-standing relationships and a wealth of experience in the convenience and retail insurance sector.

We’ve been successful over the past 32 years due to one motto: ‘Look after our clients and our clients will look after us’ – and we will stick by this. 

We’ve always put our clients’ needs first and our 97% excellent satisfaction score, reviews and reputation have led us to win multiple awards, and we hope to welcome your business.