Fish and Chip Shop Insurance

This page is designed to provide you with an overview of fish and chip shop insurance, and the broad nature of the cover that is provided by the policy.

Fish and Chip Shop Insurance Policies

Many insurance companies in the United Kingdom provide a standard shop and retail insurance package policy, will in view of the perceived greater risks involved with fish and chip shops, predominantly the presence of deep fat frying facilities, not all insurers will actually offer cover or indeed provide competitive product.

While some policies are branded "fish and chip shop insurance", there in most cases no significant differences between these policies and with a standard retail insurance product.

retailers package insurance developed significantly in the United Kingdom in the 1980s, at a time when insurers were looking to handle the business in a more efficient manner by "bundling" a number of covers together in one contract thereby reducing the administration and making the product both more attractive and more competitive.

The cover and a fish and chip shop insurance policy can be broken down as follows;

Material Damage and Property Damage

this section of the policy protects the insured against loss or damage to the physical assets of the business.  The cover includes fire, full special perils, accidental damage and theft.

The property insured under this section of the policy will include any buildings cover is required, landlords fixtures and fittings, business contents and stock.  In most cases, the sums insured specified by the policyholder in accordance with their requirements.

The presence of a freestanding deep fat frying fish range will not only be treated as a significant factor by underwriters in assessing any potential fire risk, but will also represent a significant insurance requirement for business contents.

When calculating premiums for fish and chip shop insurance, the majority of underwriters will base their calculations upon the sums insured declared under the property damage section of the policy. In simple terms, the higher the sums insured, the more premium will be required.

Business Interruption

The business interruption section, also referred to as loss of profits insurance, protects the insured in respect of a reduction in turnover/gross profit as a result of an insured occurrence under the property damage section of the policy.  For example the business is closed following a fire or significant theft. the wording, also includes additional extensions, not necessarily dependent upon a claim under the property damage section of the policy, but these are generally ancillary to the main policy cover.  We can provide you with more information on these extensions at your request.

  Loss of Business Money 

The policy will provide cover in respect of business money.  These tend to the standard limits in respect of cash in transit cash left in the premises overnight and at the home of principles or employees.  The definition the money under the policy includes not only cash, but a wider definition of "negotiables".

Public Liability and Product Liability Insurance

this section of the policy protects the insured in respect of their legal liabilities to third parties.

The public liability section protects the policyholder in respect of their legal liability for loss, damage and injury to third party property or persons arising as a result of the business activities of the insured.

The product liability section of the policy protects the insured in respect of their legal liabilities for loss insured damage to third parties, arising from the sale of product or service.

The "sums insured" under this section of the policy referred to as Limits of Indemnity.  Generally limits of less than £1 million, are not available, but most retail insurance policies will offer a standard limits of £2 million, and in some cases £5 million.

Employers Liability Insurance

any business or individual in the United Kingdom that employs others is required by law to hold employers liability insurance.  The cover provided by the employer 's liability insurance policy protects the insured against their legal liabilities for injury or damage to employees happening in the course of their employment.  The limit of indemnity required under EU law is a minimum of £5 million, but in the United Kingdom these policies are issued with a standard limits of £10 million.

It is worth noting that there are certain, limited exceptions to the employers liability insurance requirements, these relate to the employment of certain close family members and to limited companies, where the sole shareholder is also the sole director and employee. This is largely academic in fish and chip shop insurance where the employers liability insurance cover is provided as standard.

Goods in Transit Insurance

Most fish and chip shop insurance policies will include a goods in transit section.  This protects the insured in respect of losses occurring to stock and other business contents.  Whilst on the course of transit.  Standard limits on the policy tend to apply, and these can be increased in not adequate.

Deterioration of Stock/Frozen Foods

This protects the policyholder in respect of losses to refrigerated and frozen foods as a result of failure of freezers and fridges.

Loss of Licence

Loss of liquor licence is and optional extension to shop insurance policies and is only appropriate to those licensed premises.  The insurance provides the policyholder with indemnity against losses occurring as a result of the licensee having a licence removed or restricted by the local authority by no fault of the licensee.