The purpose of stock and contents insurance is to protect the items you sell, and the tools and equipment kept on your business premises. It covers lost, stolen or damaged items by events such as flood, fire, storm damage, theft or vandalism.
Why do you need stock and contents insurance?
Having stock and contents cover in place can help you replace the contents and stock of your business quickly and efficiently in the event of an incident, so that your business is out of action for as short a time as possible. Some items may be covered while in transit to your store.
Incidents can happen at any time, and it can be a major headache if one occurs, but taking the right precautions and having cover in place will give you peace of mind that you can get help when you need it.
What if I don’t have cover for my stock and contents?
If you don’t have this cover type in place, you will have to pay to replace all essential items in the event of loss or damage, which could result in a temporary halt to trading or even the permanent closure of your business.
What items does stock and contents insurance include?
Contents insurance will cover items which can be removed from the property, such as furniture, fixtures and fittings. It should be noted though, that permanent fixtures such as walls would be covered under commercial buildings cover rather than your contents cover.
- Fittings – pictures, mirrors, fire extinguishers
- Fixtures – if you are a tenant, fittings you own and install in the premises that you will remove at the end of your tenancy agreement are covered
- Furniture – tables, chairs, shelves, sofas
- Portable equipment – computers, printers, mobile phones
- Appliances – food preparation equipment, fridges, laundry equipment, hairdryers, coffee makers
Stock cover includes goods that are sold on your premises or used as part of a service you offer. Some cover providers offer an increase on your cover limit during a seasonal peak, often in November and December, to cover Christmas trading. It is best to check with your provider as to which periods are covered.
Generally, your stock and contents will be covered against a number of perils including fire, flood, storms, malicious damage and theft. Always check your cover documents or speak to your cover provider to clarify your individual cover details.
Who needs stock and contents insurance?
While it is not mandatory to have stock and contents insurance, if you have stock and money on your premises or trade services and goods with your customers, it’s a good idea to have this cover in place to protect your assets. Retail businesses, food businesses and personal care services such as hair salons or barbershops should all have a suitable level of stock and contents cover for protection.
How much does stock and contents insurance cost?
Your quote for stock and contents cover will depend on the value of the assets you want to protect. It will also depend on the type of business you have, especially if you have specialist equipment and high-value items.
If your cover limit is not in line with the stock and contents held on your premises, you may not be covered for their full value in the event of a claim.
Does The Retail Mutual offer stock and contents insurance?
The Retail Mutual offers an alternative to insurance, and we protect over 100 types of independent businesses, including clothes shops, bookshops, coffee shops, restaurants, hair salons and barbershops.
We offer stock and contents cover as part of our business cover. You will need to specify the value of the stock and contents that need to be covered during a quotation.