Understanding Cover: What is Stock Insurance?


Although not a standalone cover, stock insurance is an important component of many retail, restaurant or pub policies. Let's discuss why.

What Does Stock Insurance Cover and Does My Business Need it?

Beside your premises, if you run a retail business or own a restaurant or bar, your most valuable asset will be your stock. You could have thousands in stock at any given time.

A stock insurance policy will cover the cost of this if your stock is stolen, damaged or destroyed. This will ensure minimal disruption to your business and your customers.

Although no one can predict whether they'll be robbed or a natural disaster may happen, we would always recommend preparing for the worst possible situation just in case. This is especially pertinent if you deal with high value assets such as precious metals, alcohol or technology.

What Won't it Cover?

Every policy is different, so we would always recommend reading the fine print. A policy may dictate where and how stock should be stored in order to minimise the risks of damage or theft. Plus, not all stock policies cover goods in transit, therefore you may like to specify if this cover is required.

You may also be required to get an independent valuation of your stock in order to ensure you're not under or overvaluing its worth and neither party will be out of pocket should a claim be made. You will likely be expected to keep a valid and regularly updated record of stock levels also to ensure your insurer is up-to-date on stock level fluctuations and your assets' consequent value.

These values are what an insurer will base any lumpsum amount on. Please also bear in mind, an insurer will look at the cost price and not the recommended retail price when calculating values.

Compare Stock Insurance Quotes

If you're starting up a new business and need cover or are coming to the end of your current policy and require renewal quotes, we can help.

At Business Compare we help companies build tailor made policies around your unique needs and work with major high street lenders to secure affordable quotes and make acquiring cover quick and easy for you.

Our trained staff are just a phone call away, so get in touch on 0333 202 6240 today.

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