If you’re a retailer, it makes sense to insure your stock – the beating heart of your business. Loss or damage to your stock can be covered under your Business Contents insurance.
It’s important to know the difference between ‘stock’ and ‘contents’ however as this will help you work out your stock and contents insurance levels accurately, and it will also inform the way your business insurance works, and how your risk is perceived by an insurer.
Stock as part of your contents insurance provides protection for:
- Materials and components
- Goods in the process of manufacture
- Finished products before, during and after delivery.
Stock insurance can account for seasonal uplifts
Often, shop and retail insurance cover will include an automatic seasonal adjustment for busy periods such as Christmas and Easter when your stock levels can increase by 25-30%. Your ‘sums insured’ amount can be covered as standard helping you keep your costs down at these times.
Not all trades have the same seasonal peaks at the same time. That’s why some stock insurance policies can offer seasonal increases depending on the needs of your business.
If your stock insurance doesn’t cover the peak times when you need increased stock cover, then you can also arrange cover on a ‘maximum amount at risk’ basis, based on the point in time your stock is at its highest.
To find out more about insuring your stock, contact your local Phoenix Insurance Broker.