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Tobacco price rises: shops urged to review their insurance policies following autumn Budget announcement

Chancellor Rishi Sunak increased the duty on tobacco by 2% above inflation on cigarettes, and by 6% on roll-your-own, resulting in price rises of 4.9% and 10.9%, respectively

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Retailers have been urged to review their tobacco insurance-policy limit, following product price rises made in the latest Budget announcement.

In October, chancellor Rishi Sunak increased the duty on tobacco by 2% above inflation on cigarettes, and by 6% on roll-your-own, resulting in price rises of 4.9% and 10.9%, respectively.

At an NFRN South East district council meeting earlier this month, the federation’s national president, Narinder Randhawa, warned stores the change could leave many out of pocket in the event of a robbery.

“Retailers should remind others to look over their store tobacco insurance after the Budget, which increased tobacco prices, to ensure your store has full coverage,” he said.

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When asked how independent retailers could ensure they were adequately protected, insurance provider The Retail Mutual’s manager, Jon Taylor, told Better Retailing: “With the increase in tobacco prices, it is important that you review your cover limits.

“Remember that in the event of a claim, if the values declared are lower than the stock value held in store, your claim settlement could be reduced proportionately.

“When you are getting a quote for a new cover, or renewing with your current provider, always review your cover to ensure you have the correct limits for your shop,” he added.

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