Insurance advice for convenience retailers

Getting proper cover is best policy, says Forum Insurance

Forum Insurance offers convenience retailers bespoke cover to suit each store.
Forum Insurance offers convenience retailers bespoke cover to suit each store.

GETTING the right insurance policy is a key business decision for c-store operators – and relying on a standard package could be folly.

Niraj Mamtora, director at Forum Insurance, has been explaining why using an experienced policy provider that can create a bespoke package is a no-brainer for retailers.

He said: “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.”

He advised retailers searching for insurance to scrutinise the policy wording, noting the clauses, exclusions and cover limits.

Mamtora explained: “While choosing the right policy wording may seem more expensive, 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.”

The expert also highlighted the fact that 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, resulting in a payout of only £12,500 in this example. So, the answer is always to review your insurance cover accordingly.

The Forum team keeps up to date with trends and engages with industry events.
The Forum team keeps up to date with trends and engages with industry events.

For example, 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, Mamtora advised seeking a RICS surveyor or give your insurance broker a call.

He also pointed out that, if you’ve installed an 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 the insurance policy and covered adequately. The same goes for vending machines, car washes, or a fast-food restaurant in the premises.

Stressing the importance of choosing a specialist insurance provider, Mamtora said: “We have long-standing relationships and a wealth of experience in the convenience and retail insurance sector.

“We’ve been successful due to one motto: ‘Look after our clients and our clients will look after us’ – and we will stick by this. Being available to our clients around the clock also sets us apart from other insurance providers.

“We’ve been looking after the forecourt and retail industry for as long as we have been around, since 1990.

“With an over 96% satisfaction rate with our clients, you can trust that your business is well looked after with us.

“At Forum Insurance, we are continually keeping up to date with the industry trends and news so that we can best protect our clients.

“We are the only proactive insurance broker attending and engaging with a wide variety of industry events for the forecourt and retail sector.”