BIKE SHOP INSURANCE

Bike Shop Insurance VS Shop Insurance.

Most general insurers have their version of a shop policy – their ready-made solution available to all their brokers – designed to suit the common needs of our nation of shopkeepers. However, as you’ll be all too aware, bike shops have an identity of their own that doesn’t comfortably align with the rest of the high street.

The most important question to ask yourself is, does our insurer clearly understand everything that we do?

Have they clearly stated that your business has a workshop where you are regularly servicing and repairing customers’ pricey bikes? Do they know about those social rides, those proficiency lessons, those maintenance classes, that bike fitting service, those demonstration bikes, that charity event you supported?

If you’re insured or considering insuring your bike shop on one of these products on the face of it the insurance may look fairly comprehensive, but there will be exclusions lurking in the policy wording that could bite hard.

Designing a specialist product for bike shops has given us the freedom to think about the extra risks you face on a regular basis – we have added these on to our product to provide support where standard shop policies would start to unravel.

Below is a comparison table showing Bikmo’s Bike Shop Insurance policy vs three leading insurers’ widely available shop/retail policies.

Key differences

Bikmo
Allianz
AXA
Aviva

Key differences

Damage to Customer bikes undergoing servicing or repair
Damage to Customer goods in your trust related to defective workmanship or an omission on your part
Public Liability arising from damage to goods in your custody
Public/Products’ Liability cover for incidents related to repairs or servicing
Employers’ Liability cover for incidents related to repairs or servicing
Public Liability cover for manual work/repairs completed away from your premises
Cover for overseeing sportives, tours, trails, cycling proficiency, maintenance classes, bike fitting
Hire/Demo – cover for goods while in the custody of your customers
Value of Employees cycles insured
Grab & Run thefts (where there is no forced/violent entry/exit)
Stock uplifts that reflect the seasonal trends of typical bike shops
Cover for damages due to defamation or infringement of intellectual property rights
Option to include Professional Indemnity cover to protect against negligent advice/ineffective design
Events cover – recoup your non-recoverable expenses should a promotional event be cancelled for reasons outside your control
Value of stock insured while at an exhibition/trade fair
Value of business interruption cover available due to impact of damage to a nearby attraction

Bikmo

Based on Bikmo’s Bike Shop product, underwritten by Hiscox
Damage to Customer bikes undergoing servicing or repair
Damage to Customer goods in your trust related to defective workmanship or an omission on your part
Public Liability arising from damage to goods in your custody
Public/Products’ Liability cover for incidents related to repairs or servicing
Included
Employers’ Liability cover for incidents related to repairs or servicing
Included
Public Liability cover for manual work/repairs completed away from your premises
Yes
Cover for overseeing sportives, tours, trails, cycling proficiency, maintenance classes, bike fitting
Included
Hire/Demo – cover for goods while in the custody of your customers
Value of Employees cycles insured
£10,000 for each incident
Grab & Run thefts (where there is no forced/violent entry/exit)
Stock uplifts that reflect the seasonal trends of typical bike shops
Cover for damages due to defamation or infringement of intellectual property rights
Option to include Professional Indemnity cover to protect against negligent advice/ineffective design
Events cover – recoup your non-recoverable expenses should a promotional event be cancelled for reasons outside your control
Value of stock insured while at an exhibition/trade fair
£25,000
Value of business interruption cover available due to impact of damage to a nearby attraction
£100,000

Allianz

Based on Allianz’s Complete Retailer product
Damage to Customer bikes undergoing servicing or repair
Damage to Customer goods in your trust related to defective workmanship or an omission on your part
Public Liability arising from damage to goods in your custody
Public/Products’ Liability cover for incidents related to repairs or servicing
Only if servicing/repair work clearly noted
Employers’ Liability cover for incidents related to repairs or servicing
Only if servicing/repair work clearly noted on schedule
Public Liability cover for manual work/repairs completed away from your premises
Option to add
Cover for overseeing sportives, tours, trails, cycling proficiency, maintenance classes, bike fitting
Only for those activities clearly noted on schedule
Hire/Demo – cover for goods while in the custody of your customers
Value of Employees cycles insured
£100 for each loss
Grab & Run thefts (where there is no forced/violent entry/exit)
Stock uplifts that reflect the seasonal trends of typical bike shops
Cover for damages due to defamation or infringement of intellectual property rights
Option to include Professional Indemnity cover to protect against negligent advice/ineffective design
Events cover – recoup your non-recoverable expenses should a promotional event be cancelled for reasons outside your control
Value of stock insured while at an exhibition/trade fair
£10,000
Value of business interruption cover available due to impact of damage to a nearby attraction
£50,000

AXA

Based on AXA’s Retailers product
Damage to Customer bikes undergoing servicing or repair
Damage to Customer goods in your trust related to defective workmanship or an omission on your part
Public Liability arising from damage to goods in your custody
Public/Products’ Liability cover for incidents related to repairs or servicing
Only if servicing/repair work clearly noted
Employers’ Liability cover for incidents related to repairs or servicing
Only if servicing/repair work clearly noted on schedule
Public Liability cover for manual work/repairs completed away from your premises
No
Cover for overseeing sportives, tours, trails, cycling proficiency, maintenance classes, bike fitting
Only for those activities clearly noted on schedule
Hire/Demo – cover for goods while in the custody of your customers
Value of Employees cycles insured
£1,000 for each loss
Grab & Run thefts (where there is no forced/violent entry/exit)
Stock uplifts that reflect the seasonal trends of typical bike shops
Cover for damages due to defamation or infringement of intellectual property rights
Option to include Professional Indemnity cover to protect against negligent advice/ineffective design
Events cover – recoup your non-recoverable expenses should a promotional event be cancelled for reasons outside your control
Value of stock insured while at an exhibition/trade fair
£2,000
Value of business interruption cover available due to impact of damage to a nearby attraction
Not included

Aviva

Based Aviva’s Shops and Salons product
Damage to Customer bikes undergoing servicing or repair
Damage to Customer goods in your trust related to defective workmanship or an omission on your part
Public Liability arising from damage to goods in your custody
Public/Products’ Liability cover for incidents related to repairs or servicing
Only if servicing/repair work clearly noted
Employers’ Liability cover for incidents related to repairs or servicing
Only if servicing/repair work clearly noted on schedule
Public Liability cover for manual work/repairs completed away from your premises
Yes
Cover for overseeing sportives, tours, trails, cycling proficiency, maintenance classes, bike fitting
Only for those activities clearly noted on schedule
Hire/Demo – cover for goods while in the custody of your customers
Value of Employees cycles insured
£15,000 for each incident
Grab & Run thefts (where there is no forced/violent entry/exit)
Stock uplifts that reflect the seasonal trends of typical bike shops
Cover for damages due to defamation or infringement of intellectual property rights
Option to include Professional Indemnity cover to protect against negligent advice/ineffective design
Events cover – recoup your non-recoverable expenses should a promotional event be cancelled for reasons outside your control
Value of stock insured while at an exhibition/trade fair
Option to add
Value of business interruption cover available due to impact of damage to a nearby attraction
£50,000

Disclaimer – Comparison true as per our review of available products as at 24/03/2022. All coverage is subject to terms and conditions.

Where could a standard shop policy run out of puff?

Damage to customers’ bikes in your care

You may swoon at some of the top-end bikes brought into your workshop – you’ll never take for granted the trust customers are placing in you when they bring their pride and joy in for a service. However, with all the care in the world, accidents happen. Shop policies typically contain exclusions for any damage suffered to items undergoing service or repair, and also any public liability for damage to goods in your custody – the upshot being that you’d have to make everything right with the customer without any support from your insurer.

The grab and go theft

The rising cost of high-spec bikes means that it can only take a moment for a thief to well and truly ruin your week, taking off with thousands of pounds worth of stock. Typical shop policies contain a violent entry/exit requirement – if an opportunistic chancer walks through an unlocked door and relieves you of your highest value bike you’ll have to write it off as bad luck.

Demo/Hire service costing you dearly

Most shops work on the simple basis that the customer pays for the goods they walk out with, they now own that item. We know how important it can be to a bike shop to offer demo bikes to customers to test them out, or offer a bike hire service as an additional revenue stream. At odds with how shop insurance policies are written you are allowing customers to take your bikes off the premises – if these don’t come back to you in the condition they left in, or if they don’t come back to you at all, it could be a painful lesson.

The closure of the nearby trail centre

A significant portion of your business may come from the traffic generated by the location of your shop – a great example is if you have a trail centre in the vicinity. What happens if the trail centre suffers a fire and is closed for the season? That could have a significant impact on your trading performance. A loss of attraction business interruption extension can protect against this lost income, but not all off-the-shelf policies include this extension, and where it is included the limit may fall short of your actual loss.

Mechanical work away from the premises

We appreciate that most of your repairs will be conducted in your workshop, but a small proportion may be undertaken away from the shop – you may be supporting a local cycling event by providing mechanical support. Standard shop policies don’t all allow for liability arising from works completed away from your premises – your good deed to support the local community could leave you facing an uninsured liability claim if a rider hits the tarmac.