What is stock insurance?
For any business that deals with physical products, materials and stock insurance is essential. When you are selling or making stuff, your inventory is one of your most valuable business assets.
Stock insurance is a type of insurance designed to protect your inventory from various risks, including theft, fire, flooding, or malicious damage. If your business holds physical products, this coverage ensures that you’re financially protected should something go wrong with your stock.
Whether you operate from a brick-and-mortar location or run an e-commerce business, business stock insurance ensures your goods are covered, giving you the peace of mind to focus on growing your business.
What does stock insurance cover?
Materials & stock insurance covers the following key risks:
- Theft: If your stock is stolen from your home, business premises or during transit, the insurance helps cover the cost of replacement.
- Damage: Whether due to fire, water damage, or vandalism, stock insurance can cover the replacement costs for damaged goods.
- Loss: Covers stock that is lost due to unforeseen events such as natural disasters, burglary, or even a car accident.
- Transit Insurance: If you transport goods between locations, this can cover your stock if it's lost or damaged during transit.
The exact cover can vary depending on your policy, so it’s important to ensure your specific business needs are met.
Materials & stock insurance at Suited
Who needs stock insurance?
If you run a business that sells or stores physical products, stock insurance is essential. It’s especially important for:
- Tradesmen: Supplies and raw materials are often required to get a job done.
- Hairdressers: Hair products are an essential part of this profession and a hairdresser or barber usually holds a few thousand worth of stock.
- Home crafters: Dress makers, curtain makers, jewellery designers, artists all require to have stock in order to their job.
If you rely on stock to make sales, business stock insurance is a must-have to protect your investment.
How much stock insurance do I need?
The amount of stock insurance you need depends on the value of your stock and the risks your business faces. To determine the right coverage:
- Assess the value of your stock: How much is your inventory worth at any given time? Consider both the goods you have on hand and those in transit.
- Consider potential risks: Think about the risks in your industry. Are you at high risk for theft? Do you store stock in an area prone to flooding?
- Check your contractual obligations: If you lease property or have supplier agreements, there may be minimum insurance requirements you need to meet.
