If your business’s stock is damaged or stolen, it could have a massive impact upon your business and its ability to trade - particularly if you don’t have adequate insurance in place. As such, no matter what type of business you’re involved in, you should make sure everything is covered in case the unthinkable should ever happen.
What is stock insurance?
Stock insurance is not a standalone insurance policy – instead it is an optional additional cover which can be added to your business’s contents insurance policy, offering potentially invaluable protection if your stock is damaged, lost, or stolen. As an example, if your business premises suffered a flood which caused damage to your stock and rendered it unsellable, then a successful claim on your stock insurance policy could provide you with the funds needed to replace the damaged stock.
It’s important to remember that any pay-out from a successful claim on your stock insurance policy would be based on the wholesale cost price of the covered items. So you would receive the funds to replace your stock based on this amount, rather than the price it retails for. It’s also important to make sure that you don’t undervalue or overvalue your stock - this could leave you out of pocket in the event of a claim, or even completely invalidate your cover.
What does business stock insurance cover?
Insurance for stock is made-to-measure cover, meaning it will insure you for whatever stock you need it to. There are several broad categories you may want to consider, including:
- General stock – This is sometimes known as ‘stock in trade’, and covers the standard stock that your business deals with on a daily basis. This will be unique for every business, depending on the sector you operate in – for instance, if you’re in car sales, it will cover your cars, and if you own a coffee shop, your food and drink will be insured.
- High risk stock – This type of cover is for high value stock that is attractive to thieves. In the retail sector for example, this could mean anything from cigarettes and alcohol, to computers and mobile phones. The price you pay for this cover is typically higher than basic stock in trade cover, and insurers often ask that you increase the physical security of your premises - for instance installing door and window locks - as a condition of cover.
In some cases, stock may be covered as standard if you take out a shop insurance package. To find out, click the link to run a shop insurance comparison.
What are the additions and exclusions on stock insurance?
As with all types of insurance, when taking out business stock insurance you should bear in mind the criteria of your policy, paying particular attention to certain conditions you may need to adhere to in order to ensure your policy is valid and your stock is properly covered. For example, some policy documents stipulate that you must inform your insurer if your stock level grows in value or quantity, or if the location in which it is stored or sold changes. This kind of adjustment may alter the level of risk for the insurer, and so it could have an effect on the price that you pay. If you fail to do this, it could render your policy void and mean you might not receive full financial reimbursement if you need to make a claim. This is why it's important to conduct a full comparison of stock insurance policies each time you renew.
How to get a stock insurance quote online
To get a quote for stock insurance that is right for your business requirements, get in touch with Make It Cheaper Financial Services today. Our UK based insurance experts make it quick and easy for you to get a business insurance quote, so that you can get back to business as usual.
Click the “get a quote” button below to get your no obligation quote, or call one of Make It Cheaper’s advisors on 0800 144 4808.
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