Add stock cover to your business insurance

When you have hundreds or thousands of pounds worth of stock stored on your business premises, it is vulnerable to the same risks as your premises and its contents. Losing your stock would cause serious damage to your revenue and overall cashflow, so it is sensible to take out insurance to cover it.

What is covered with stock insurance?

Your stock insurance will cover the cost price of your stock. This means that, should it be damaged, destroyed or stolen, you will be given the funds to buy new stock based on the cost of the old stock (the cost price not the RRP).

Details to look out for

• On the policy, look out for criteria as to how your stock must be stored
• Be sure to keep the insurer informed if your stock grows with your business or if you start to sell more expensive items
• Check all the exclusions on a policy to ensure that you have the right cover
• Excess may vary so it is important to make sure the level is acceptable