Shop Insurance

Shop insurance is a customised insurance plan designed for shop owners. Under this plan, shop owners receive financial protection for their shop property and contents against various mishaps and unexpected events. It covers everything from cash, furniture, and stock to the entire property against fire, theft, burglary, natural disasters, and more.

With this policy, you can also secure your shop against accidental damage, protect your electronic equipment, cover rent losses, and get much more protection with our wide range of add-ons.

Whether you run a boutique, a kirana store or an electronics shop, owning and running a shop is much more than just managing daily sales and tallying profits. You need to assess potential risks and determine the right insurance coverage.

• High Risks for Commercial Spaces: There has been a rise in burglary and theft cases in India, with burglaries up by 25.2% in 2024 when compared with cases in 2023 and about 60% more than in 2022. Such crimes have resulted in an increase in “shrinkage” or loss of stock in 2024. Thus, protecting your shop is more important than ever.
• Financial Coverage: Shops, such as grocery shops or electronics shops, run on day-to-day profits. Shop insurance helps you reduce the financial loss caused by unexpected events such as fire, theft, natural disasters, etc.
• Start-Up Expenses and Professional Fees Cover: Resetting your new shop can be challenging and a huge financial burden. With shop insurance, you get coverage to recover from damages caused by various perils and ensure smooth operations.
• All-In-One Policy: Our shop insurance policy offers coverage from all major risks under the same plan. This includes fire, burglary, theft, money protection, legal coverage, etc. This eliminates the need for purchasing a separate policy for each threat.

A furniture shop owner in Chandigarh had a shop insurance policy to protect his shop and its contents from common risks. In 2018, a fire damaged his shop, furniture and other belongings. The shop owner raised a claim with his insurance provider to repair the damages by submitting all the required documents, including the FIR.

He received a claim of around ₹2.7 lakhs, and an additional 9% annual interest on the claim amount for receiving a delayed settlement. This helped him recover from the financial losses and re-establish his business. This real-life example shows why every shop owner needs shopkeeper’s insurance for financial protection.

TATA AIG offers 2 types of shop business insurance plans:

TATA AIG Bharat Sookshma Udyam Suraksha

This shopkeeper insurance policy is specifically designed for shops that have assets worth less than ₹5 crores. This means that this plan offers a maximum sum insured of up to ₹5 crores and offers coverage for the property, partial or total loss of stock and machinery.

TATA AIG Business Guard Laghu Package Policy

This plan is designed for larger shops or enterprises, with assets valued between ₹5 crores and ₹50 crores. It offers high coverage with a maximum sum insured of up to ₹50 crores. It also offers higher coverage for specific contents, including money, computers and employees’ personal effects.

Physical Loss or Damage - Covers physical loss or damage caused to buildings, plant and machinery, stock and other related assets due to various reasons such as the following:

• Fire - Protects your shop and its contents from damage caused by fire, including fermentation, natural heating or sudden fire.
• Bush fire, Forest fire, Jungle fire - Protects your shop and its contents from damage caused by accidental fires, ensuring financial security.
• Natural Calamities - Protects against losses caused by severe natural disasters like cyclones, floods, hurricanes and storms.
• Lightning - Provides coverage for damages caused directly by lightning strikes to the shop or its contents.
• Impact Damage - Covers damage caused by animals, falling trees, walls or any other external objects crashing into your shop.
• Leakage from Automatic Sprinkler Installations - Covers damages caused by accidental leakage from sprinkler systems installed in the shop.
• Malicious Damage and Riot Strike - Covers damage caused by vandalism, riots, or strikes affecting your shop and its contents.
• Missile Testing Operations - Provides coverage for damages resulting from missile testing activities near your shop.
• Theft - Covers losses due to theft occurring within 7 days of any insured event.

Burglary - Covers loss or damage to the shop contents caused by burglary. This includes repair and replacement costs for locks and keys, repair costs of underground cables, and more.

Money Insurance - Covers loss of money in a safe, transit, or counter. Money includes cash, coins, stock, share certificates, and more.

Public Liability - Covers liability arising from third-party injury or property damage in connection with the business.

Employee Fidelity - Covers financial losses incurred due to acts of fraud or dishonesty committed by the employees.

Plate Glass - Covers accidental damage to plate glass. This includes the cost of repairing and reinstating frames.

Electronic Equipment - Covers physical loss or damage to electronic equipment and pays for the repair or replacement expenses.

Neon Sign - Covers loss or damage to the neon sign and third-party liability.

All Risk - Covers repair or replacement cost of portable equipment like tablets, laptops, and mobile phones, or any other equipment acquired.

Please note: These are some of the key inclusions of the shop insurance policy. Also, the inclusions are subject to certain policy conditions. Kindly refer to the policy document for the complete details.

In-Built Covers Applicable to the Inclusions Under Physical Loss or Damage

• Additions, Alterations or Extensions - Provides coverage up to 15% of the sum insured for new properties you erect, acquire, or add during the policy period.
• Temporary Removal of Stocks -Covers loss to stocks temporarily relocated for tasks like processing, fabrication or finishing up to 10% of value.
• Specific Contents Coverage - Offers fixed coverage for deeds, data recovery and personal belongings for up to 20 individuals.
• Start-Up Expenses - Covers up to ₹5 lakhs for essential costs due to losses or damages caused by insured risks during the policy period.
• Professional Fees - Pays 5% of the claim amount for the fees to be paid to architects, surveyors, and consulting engineers.
• Debris Removal Costs - Covers up to 2% of the claim amount for costs involved in removing debris.
• Costs Compelled by Municipal Regulations - Covers additional construction expenses required to meet municipal or government regulations.

• Physical Loss or Damage - Damages or losses due to explosion or implosion caused to boilers, impact damage caused by pressure waves from aircraft, etc.
• Burglary Exclusions - Loss of gold or silver articles, deeds, bonds, medals, coins, etc. and damage due to a member of the insured household or staff
• Money Loss Exclusions - Losses due to theft or dishonesty by an employee, shortages from accounting errors, and use of counterfeit money.
• Plate Glass Exclusions - Losses due to scratched, cracked, or imperfect glass and damage due to defective design.
• Electronic Equipment Exclusions - Losses due to willful act of negligence by the insured or his representative.
• All Risk Exclusions - Damages caused by dyeing or bleaching, repairing, restoring, or renovation, breakage or cracking of crockery, glass, sculptures, etc.
• Neon Sign Exclusions - Damages due to natural wear and tear or caused by repairing, restoring, or renovation.
• War & Nuclear Hazards - Loss or damage caused due to war or war-like operations, pollution, contamination, radioactive waste, ionising radiation, or nuclear fuels.

Please note: These are some of the common exclusions. Kindly refer to the policy document for the detailed list of exclusions.

• Waiver of Underinsurance - Waives the underinsurance clause and is not applied when calculating losses. Underinsurance means your property is insured for less than its actual value, which leads to reduced claim payout.
• Declaration Policy for Stocks - Your coverage will be automatically updated as per your declaration of your stock value during the policy period.
• Omission to Insure Additions, Alterations or Extensions - It is an extension to cover new properties up to 5% of your SI.
• Escalation Clause - Your coverage limit rises by a small preset percentage during the year to keep pace with price increases.
• Accidental Damage Cover - Covers accidental loss or damage to your property.
• Involuntary Betterment - When replacement is not possible, a newer, similar model of the insured property will be considered for the coverage.
• Rent Insurance -If your shop is damaged to the extent that it cannot be used, we will pay you the lost rent or the additional rent you have to pay for alternative premises.
• Protection and Preservation of Property - Covers the costs incurred to temporarily protect or preserve the insured property.
• Contract Works - Covers permanent and temporary works, materials and items at your shop’s renovation or construction site.
• Deterioration of Stocks in Cold Storage Premises - Covers loss of insured items due to power failure or damage to insured cold storage machinery lasting over 24 hours.
• New Location Cover - Covers newly acquired property automatically for up to 15 days, after which you need to declare the value and pay the applicable premium.
• Brands and Trademarks - Cover the loss or damage to branded or labelled goods and allows you to remove labels to prevent damage up to 25% of the Finished Goods SI.
• Electrical Injury - Covers repairs of electrical equipment damage caused by a short‑circuit, overload, excessive pressure, self-heating, etc.
• Fuel Contamination During Decantation - Covers the loss arising from contamination caused by water or alternate fuel in the underground fuel tanks. This applies to petrol and diesel pump stations and covers the cost of cleaning the underground tanks.
• Wrong Fuelling of Vehicles - Covers the liability of the insured to its customers arising from wrong fuelling of their vehicles from the insured location. This applies specifically to petrol or diesel pump stations.
• Terrorism - Covers physical loss or damage during the policy period caused by an act of terrorism.

Please note: The add-ons are subject to certain policy terms and conditions. Please refer to the policy document for complete details.

Various kinds of shops are covered under our shop business insurance plans. These include:

• Home Repair Services - Various types of home repair services, such as motor garages, carpentry workshops, engineering workshops, etc., can secure their shop against potential risks of fire or theft.
• Mobile and Gadgets Shops - Businesses that sell mobile phones and other electronic gadgets should definitely consider investing in this insurance to protect their shops against potential losses from risks such as fire and burglary.
• General and Grocery Stores - Businesses that sell general or grocery items are also covered under shop insurance. From kirana shops and godowns to supermarkets like Big Bazaar fall into this category.
• Personal Lifestyle or Fitness Space - Personal lifestyle spaces like hair salons, spas, boutiques, etc, are also covered under shop insurance plans. In addition, fitness spaces like gyms, weight management centres, etc, are also secured against various financial risks.
• Food and Eatery Shop - Another vast business is the food and eatery sector, such as cafes, restaurants, bakeries, etc., which are also covered under shop insurance.
• Manufacturing and Processing - It includes businesses involved in any kind of manufacturing and processing units.
• Healthcare - It includes businesses and shops that are involved in providing healthcare services, such as pharmacies and medical shops, etc.

• Independent Shop Owners - Independent shopkeepers whose livelihoods rely completely on their shops should invest in this plan. By insuring the shop, you do not have to worry about covering any potential crises from your own pocket or facing financial burden.
• Multiple Shop Owners - With multiple shops, the probability of risk also increases. Thus, shop insurance plans help reduce financial risks and offer adequate coverage to protect your shop in the event of adversity.
• Family Business Owners - Family businesses, such as garment shops and sweet shops, also have a legacy to maintain in addition to their finances. Investing in a shop insurance plan is the best way to protect your family’s vision.
• High-Risk Business - Shop owners who operate high-risk businesses, such as electronics shops or jewellery shops, can effectively protect their high-end investments with shop insurance from any unforeseen crisis.
• Prime Area Shop Owners - Prime area shop owners are more prone to risk than shops in other areas because of the shop's popularity and profits. Thus, securing their shop with shop insurance is ideal.

• Your insured shop must be located in India.
• You must be an Indian citizen and more than 18 years of age.
• You must be a legal owner, tenant, lessee, or occupier of the shop.
• You must carry all the valid documents required.
• The insured shop should not be unoccupied for more than 30 days.

Choosing the right shopkeeper’s insurance policy requires careful evaluation of several key factors. Here’s what you need to consider:

• Sum Insured - Sum insured (SI) is the highest amount you get at the time of raising a claim. Choose a plan with a customisable sum insured based on the value of goods and content present in your shop. This ensures you’re neither underinsured nor overpaying for coverage.
• Coverage Offered - Verify that the chosen plan offers coverage for both the property and the content inside the property. Additionally, ensure that various serious perils like fire, theft, natural disasters and burglary are covered.
• Inclusions and Exclusions - Paying attention to plan inclusions and exclusions, is crucial as it helps you understand what the insurance policy will cover and what will not be covered. Read the policy document carefully to avoid surprises during claim settlement.
• Ease of claims - Ensure that you understand the claim process. TATA AIG has a high claim settlement ratio and a dedicated team of claim experts to guide you through the settlement process smoothly and efficiently.
• Affordability - Ensure that the high protection and wide coverage do not cause additional financial stress for you. Choose a plan that is cost-effective and eases your financial burden. Use our shop insurance calculator to compare different plans and find the best value for your budget.

Our shop insurance premium calculator, available at the top of this page, makes it easy to get accurate quotes in
seconds. Here is how it works:

1. Shop Type - Enter the type of shop (e.g., grocery, electronics) to determine specific risk factors and base premium rates.

2. Shop Location - Premiums vary based on the shop’s location (urban, semi-urban or rural) and presence in high-risk areas.

3. Sum Insured - Select the desired coverage amount for the shop’s structure, inventory and fixtures to get an accurate quote.

4. Add-Ons - Customise your policy with add-ons like burglary cover or natural disaster protection for tailored coverage.

5. Deductibles - Adjust deductibles to lower premiums, balancing out-of-pocket expenses with cost savings.

• Property Protection - If your shop or workshop is damaged by fire, riots, explosion or any natural calamity, our shop insurance plan will provide comprehensive property protection. The amount of coverage you receive is based on your declared property value.
• Money Protection - If your safe is broken during a burglary and you lose your money, our insurance will protect you with money insurance. It protects your hard-earned money, safely stored in safes or lockers and transfers money between the shop and the bank or vice versa.
• Liability Coverage - Another important benefit is receiving protection in case of legal troubles. For example, if a fire accident in your shop causes damage to another property, this insurance will cover the damage you are liable to pay to the other property owner without affecting your business finances.
• Burglary Protection - Our shop insurance plans will also cover burglary or robbery, which causes loss of stock, furniture or damage to your property. Under the plan, all content inside the shop will also be insured in case of loss or damage, and we will reimburse it based on the policy conditions.
• Affordable & Comprehensive Coverage - We know running a shop is already expensive. Our shop insurance does not add to that burden. You get complete protection for your shop at low budget-friendly prices. This means you can secure your business fully without worrying about high insurance costs eating into your profits.

Also Read: Commercial General Liability Insurance

1. At the top of this page, find the TATA AIG Shop Insurance Calculator.
2. Choose the appropriate business premise, enter your mobile number, and proceed.
3. Provide the required business details and assess the recommended policy options.
4. Compare the different options and choose a suitable shop insurance policy. Include add-ons based on your specific needs.
5. Pay the applicable premium.

1. Notify TATA AIG - Contact TATA AIG immediately or within the timeline mentioned in your policy. You can contact us on our toll-free number 022 6489 8282 or email (customersupport@tataaig.com), sharing your policy details and incident information.

2. Report to Authorities - Inform the fire brigade, police, or relevant authorities based on the nature of the incident and obtain necessary reports.

3. Submit Claim Form - Fill out the shop insurance claim form and submit it along with the required documents, such as loss proof and authority reports, within 30 days.

4. Survey and Investigation - Work with TATA AIG’s surveyor for a detailed damage assessment and provide any additional documents requested.

5. Claim Settlement - After verifying your claim and documents, TATA AIG will process and disburse your claim amount.

Note: Claims exceeding ₹1 lakh must be filed manually as per IRDAI guidelines.

Setting up and running a shop successfully requires determination and hard work. However, every business is exposed to a wide range of risks. And these risks can lead to extensive financial losses. With a comprehensive shop insurance policy, you can get extensive coverage against various risks, such as fire, natural disasters, and burglary, especially when the number of such incidents is on the rise.

TATA AIG’s fire insurance policy is designed to offer financial protection against a wide range of risks and ensure that your shop runs smoothly.

Beyond this coverage, you can also explore our commercial insurance plans for enhanced protection. This includes marine insurance, group health insurance, and workmen’s compensation insurance.

With our comprehensive coverage, customisation flexibility and a quick claims process, you can focus on your business’s growth without worrying about uncertainties. Secure your shop today with TATA AIG and benefit from tailored coverage that fits every shop owner’s needs.