As part of a shop insurance policy, there will be two main types of cover. Stock and public liability. Although we are just coming out of the depths of a recession, we are still feeling the after effects.

Many businesses, including retailers, have survived the last couple of years with reduced stock levels.The Japanese “just in time” stock holding philosophy has been put to much use. Even the local garage does not keep any stock apart from oil. Every single item they use is ordered and usually delivered within one hour from a local company. Whether this is a light bulb or a new battery.

Whilst we are not saying that we are out of the woods (recession wise), we can at least see the edge of the forest. We are also moving into the Christmas period. The kids are telling me it is not long to go and the shops are starting to advertise their Christmas wares.

This means, that most retailers are now at the point in the year when they should just take a quick glance over their business insurance policy and make sure that they have the correct sums insured for stock. Many policy contain an automatic percentage increase, say25% or 30%.

You should check however that the base sum insured is adequate to replace your stock, given that we have seen price increases across the board for most physical products. Refer to your computer stock control system and take an average for the past 10 month, add a percentage to take account of the additional replacement costs.Then, if necessary, speak to your broker and make sure that your policy is correct.

Even if you increase the amount just for a few months, between now and January this will be better than not having the correct sum insured. We are seeing an increase in theft and break ins, not quite to the levels we expected, but still, no premises is immune to an attempted theft. Make sure your policy has the correct limits.

Every shop insurance will include, potentially, two clauses regarding physical security.

Every policy will contain a minimum security condition and then, depending on the levels of stock in the premises, there may be an additional condition for an intruder alarm and/or other physical security such as grilles, shutter or metal doors.

Whilst we do not have any statistical evidence from the insurance industry as a whole, we do know that the majority of physical break-ins or attempted break ins, occur at the rear of the property. This you can understand as the rear of most properties is more shielded, usually dark and potential criminals can make more noise without being disturbed.

The minimum security condition on most policies will specify the types of locks that you need to have on both doors, and windows. You really need to take the opportunity to review the minimum security condition to make sure that you do comply. Fire doors are usually exempt, although this should be stated in your policy wording.

The condition will state that you may need to have a key operated five lever mortice deadlock. You can pick up one of these locks, that is approved by insurers, for about £20 in most DIY stores. But, and there always is a but, you need to check how this is to be fitted. Many security conditions specify the minimum thickness of any door that these are fitted to. If your door is too thin, you need to speak to your business insurance broker and get them to provide advice as to what you can do.

Other conditions may state that there are to be barrel bolts, or a substantial padlock. All security conditions are different in small, but very important ways. You are obliged to read through your policy wording and to make yourself aware of all conditions that may, or may not, apply.

Although we do not share the same weather as our continental cousins, in the UK many, many food establishments now have some form of external, or pavement seating. Even though it may only be a few seats, this does represent something that should be notified to your shop insurance company.

Any retail business that has a valid policy in force, will have a combination of covers. One of these will be public liability. This is essentially your responsibility, as a business, for injury, illness, disease and/or damage to third party persons or property.

For example if someone is walking along the pavement and they trip over a chair, table, A frame or some other item of furniture, there is a chance that you could face a claim. Whilst it may not seem obvious, you need to check on two things.

Firstly, you need to speak to the local authority (if it is on a pavement or similar) or the shopping centre owners, if applicable, and to ask what is the minimum limit of indemnity they need you to have in place. Many local authorities are now insisting on a limit of £5,000,000, up from the usual £2,000,000.

Secondly, you need to ensure that your business insurance policy notes that you are covered for external seating. Any additional risk factor presented by your business should be notified to them. They may not necessarily charge any extra, but at the end of the day you are better to let them know in the event that any claim is covered.

Roller shutters are everywhere. It used to be that you only needed roller shutters if you were a city centre business. Nowadays though, it does not matter which city or town you go to, a good proportion of high street properties will have this form of protection.

They are not usually a requirement of any business insurance quote or policy you take out. If we declare to an insurer that a business has roller shutters it is considered as a good underwriting feature, instead of a factor whihc can allow a discount.

Apart from the actual type of business and the location, the other two factors that affect the theft element of any cover, are the intruder alarm and locks. This is where an insurer may choose to insist on a certain security level, prior to providing, for example, theft cover.

But, you may install the roller shutter yourself and a good quality electric shutter for a even a 1,000 square foot shop can set you back a few thousand pounds. So, should this be on your shop insurance policy? Or the policy for the landlord or owner of the building?

Technically, you need to insure it under your policy. You as the shop owner have the financial interest, as you own and have paid for the shutter. Speak to your business insurance broker about getting this added to your policy. It is not a “content” or “fixture or fitting”, it must be insured as a tenants improvement.