Retail, Leisure and Shopping centre insurance support for property damage, liability, business interruption and cyber risk. Speak to Lockton’s specialist retail team.

Business interruption insurance protects your revenue if external factors prevent customers from reaching your site - particularly if it includes cover for non-damage prevention of access or loss of attraction. Whether it's a security incident, ongoing construction in a nearby area, or road closures, the right insurance will compensate you for lost income streams, including car park fees, rental income and service charges. So your finances remain stable until access is restored.

Property owners’ liability insurance protects you against the financial impact of accidents or injuries on your premises, whether they involve tenants, customers or third-party contractors. Property owners’ liability is an essential for protection against costly legal claims and helps manage the financial impact of any incidents that occur within your shopping centre or retail property.

To fully protect your shopping centre, it’s crucial to have a comprehensive insurance package in place that includes property damage, like fire or vandalism, but also extends to more complex threats like terrorism, cyber attacks and liability for accidents. Non-damage business interruption cover ensures that - even if your centre’s operations are disrupted without physical harm, for example by a loss of attraction or prevention of access - your income will remain protected. Tailored coverage that includes risks like brand damage, security costs and crisis response ensures your business remains resilient in the face of all potential threats.

. Lockton offers tailored insurance solutions specifically designed for the unique challenges of the retail and shopping centre sector. Its unique sector insight and its expertise in risk control, crisis preparation, and claims management make Lockton an ideal partner. With deep industry knowledge and connections, and a focus on mitigating property damage, business interruption, and reputational risks, Lockton works closely with you to provide comprehensive coverage that evolves with your business needs. Strong and established relationships with a wide array of managing agents will help to ensure the smooth running of the day-to-day administration of your insurance program. The Lockton in-house “Asset” system enables the swift, and accurate, production of policy documentation, at tenant level, which can greatly aid the premium recovery process.

Useful information for an initial discussion may include details of the property or portfolio, occupancy and vacant units, rental and service-charge income, on-site operations, vehicles, engineering risks and the cover being reviewed. Fire, flood, escape of water, machinery breakdown and responsibilities shared between landlords and tenants should also be considered where relevant. Eligibility, pricing, limits, excesses and exclusions will depend on the risk details and insurer terms, so these should be confirmed during placement and at each renewal.

Your Policy Schedule will often show two values: one referred to as the Declared Value and the other as the Sum Insured. The difference between these two figures is simply how the insurance contract handles inflation during the insured period.

The Declared Value is the cost to rebuild your property in full, however you do not need to add any increase for inflation during the insured period or during the time it takes to rebuild the property following a claim.

A “Day One” Clause provides protection against the effects of inflation during the period of insurance for a given percentage uplift figure. The percentage uplift will vary from insurer to insurer but will typically be between 10% and 50%.

Property Owner’s Liability (sometimes called Public Liability for property owners) covers you if someone is injured or their property is damaged because of your property, and you are found legally responsible. Typical examples:

• A loose paving slab causes a visitor to trip and break an ankle.

• A roof tile falls and damages third party property

• A handrail gives way and a third party is injured

In these situations, the injured person could claim for:

• Medical costs

• Loss of earnings

• Compensation for pain and suffering

• Legal costs

Does it cover tenant improvements and alterations?

This depends on who owns the improvements and the wording of the lease and insurance policy. Landlords should establish whether items such as partitions, shop fittings or other alterations are considered part of the building or the tenant's property.