When handling stock, it is important to select the correct stock sum insured amount to cover your business in the event of a claim. The stock sum insured also forms the basis of an insurance premium, so essential to get it right and avoid underinsurance.
How much should I pick?
The stock sum insured should be the maximum value of stock at any one time to ensure that your business is fully protected. This will be different for every business depending on the type and amount of stock. Many businesses will also use their stock in different ways, so it is a good idea to work out the maximum value of the stock at each stage:
- Raw materials
- Work in progress
- Finished goods
- Waste materials
Also, as most insurance policies only cover the cost price of stock, businesses who can claim back VAT should exclude this.
What about variations in stock?
As the amount of stock isn’t a fixed value for the majority of businesses, demands and trends in stock levels need to be considered. The stock sum insured should cover the maximum possible loss.
To speak to one of our insurance gurus about choosing an appropriate stock sum insured for your business, contact Insync Insurance. We can tailor our schemes to meet your individual business needs so that you only pay for the level of cover you need.