Is your business stock fully covered?

17th December, 2018

Standard stock cover includes covering the cost for the loss, damage and theft to the items your business sells, paying for their replacement.

It is important to know the difference between stock and business contents. Stock is considered by insurers to be the materials and components used, resources used during manufacturing processes, and the finished products.   

Most Retailers Insurance and Warehouse Insurance policies will cover your stock and business contents as standard. But do you know exactly the level of cover you have in place?

Do you have Goods in Transit Insurance? If you use hauliers and couriers and have your stock delivered to other locations, this type of insurance could prove to be invaluable by protecting your stock against loss or damage.

What about Seasonal Increase cover? This increases the insured sum of your stock at certain times throughout the year, such as Christmas. For example, you have insured your stock for £50,000, but at the time of the loss around the Christmas period your stock level is at £100,000. Insurers will only consider paying 50% of the claim as that is all that is technically insured.

Do you have Frozen Goods or Deterioration of Stock covered in your policy? This cover is imperative if you store your stock in a cold room or fridge/freezer. Standard stock cover will not usually insure breakdown of machinery and equipment or change in temperature.  

It is also important to know the exact value of your stock so that you are not under-insured or over-insured, paying more each month than you need to. It is important to understand your own ‘maximum value at risk’, which is the highest value a complete loss of all your stock could cost you to replace.

Check your insurance policy thoroughly to understand your exact level of cover.

If you are concerned about the levels of insurance cover you have in place, or if you would like to place insurance, speak to Routen Chaplin on 0115 973 4437 or email insurance@routenchaplin.co.uk.

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