Subtitle – Business interruption insurance (sometimes known as business income insurance), is designed to maintain your business’ trading position when disaster strikes, such as damage to your premises or fire, storm or flood.
Countless business types and models rely on the selling of goods. Second only to business premises, many companies’ most valuable capital asset is their stock – without which, trading grinds to a halt, and the cash flow stops. A business stock insurance policy can ensure minimal disruption to your trade as well as protect your cash flow, ensuring you never have to shell out if your stock is lost, damaged or destroyed.
Stock insurance is essential for many business types which rely on shifting stock as their primary way of generating revenue. Tailored stock insurance policies are available for businesses operating in particular industries, such as companies in retail, those in food and drink as well as shop insurance. It covers against all kinds of unexpected perils, including fire, flooding and theft, putting your mind at ease for situations you can’t control.
Finding a Policy & Provider
Business stock tends to come as an optional add on to most commercial contents insurance policies. Therefore, it’s a good idea to find a provider that offers comprehensive contents cover, in which you can integrate insurance for your stock. When comparing policies, be sure to bear in mind the features you need in a policy, such as the ability to account for seasonal changes to stock levels. There are three routes you can consider to find your ideal stock insurance policy.
- Approach insurance suppliers directly – The simplest way to get a quote is to go straight to the insurance suppliers. If you have any active insurance policies in place, it can be worth getting in touch with the relevant insurer to see if they can offer you stock insurance as a discounted add-on. Otherwise, most insurance providers give details of their stock insurance on their website, where you can view the features of each policy and access a personalised quote.
- Use a broker – Clients frequently mistrust brokers, assuming that the use of an intermediary means increased prices. While your premiums will incorporate commission for the broker, many clients still pay less than they would have, had they approached the insurer themselves. This is because brokers have access to exclusive products with some of the most extensive features of cover on the market, for prices which undercut those available to the general public.
- Comparison websites – An easy way to get a snapshot of the insurance market for your particular product is to use a comparison website. There, you can easily view multiple insurance solutions from a wide range of providers, enabling you to easily compare policies based on factors such as price or limit of indemnity. Bear in mind that it’s not always possible to compare policies like-for-like, as cheaper policies may have a narrower range of cover.
Stock Insurance Providers
This list comprises some of the insurance suppliers on the market offering business stock insurance.
Aviva
Stock insurance is available as part of a comprehensive policy known as Tools, Stock and Business Equipment insurance from Aviva. The policy includes cover against loss, theft and accidental damage and can also cover the belongings of employees and visitors while on your business premises. Aviva can cover items both on-site and off-site against a range of perils, and cover extends to portable gadgets such as mobile phones, smartphones, tablets and laptops. Aviva has a quick and easy claims process, offering policyholders access to a helpful UK-based claims centre.
Towergate
Towergate offers a product line of tailored insurance solutions suitable for various business types, which can all include cover for business stock. These policies include workshop insurance, warehouse insurance, home business insurance, shop insurance and restaurant insurance. This range allows businesses to combine various types of cover, such as buildings, loss of money, business interruption and liability into an all-encompassing package, allowing for easy renewal and comprehensive protection.
There’s a great deal of flexibility in Towergate’s stock coverage, with the option to add cover for frozen stock, account for seasonal stock increases as well as goods in transit cover. They are also able to insure high-risk goods, such as alcohol and tobacco. You can find a quote through their website.
Direct Line
Small businesses can insure their stock through Direct Line, who supply insurance to over 500,000 businesses around the country. Existing business customers can even secure a discount, and Direct Line guarantee to undercut renewal premiums from other insurers. Direct Line offers a combined business contents and stock insurance policy, under which cover applies for items both on-site and on the go. The policy can pay out following a range of insured events, including malicious damage, theft, civil commotion, fire and a variety of weather-related disasters. For quick queries, you can use their live chat function on their website, or get a price estimation using their online quote tool.
Simply Business (Broker)
Boasting a customer satisfaction score of 9/10 is Simply Business, owing to their award-winning claims team available around the clock. Simply Business can arrange cover for your stocks and supplies whether they’re on-site, off-site or on the go, integrated with other types of business cover such as contents, buildings or liability insurance. They can combine insurance for both stock and supplies and offer a specially tailored policy for any company trading online. In just several minutes, you can build a bespoke policy online or generate a quote through their website.
Hiscox
For companies looking to cover all their business needs in one place, Hiscox offers a line of tailored products suitable for various business-types, in which they can integrate cover for your business stock. Their packages include one for shop owners, one for food and drink businesses and one for retail stores and shops. All of these packages include cover for damaged or stolen goods against a range of risks suitable for your business type, such as food spoiled from a breakdown in transit, clothes stolen from a warehouse or a shop targeted for a break-in. Other core elements of cover which can feature in these packages are contents insurance, public liability and business interruption insurance. You can get a personalised quote online.
AXA
Stock cover is available as an optional add-on to any contents policy through AXA or as part of their tailored business-specific packages, such as their shop insurance product. Perks to a policy with AXA include a free seasonal increase at your company’s busiest time of year. This extension is flexible, allowing businesses to choose the dates where they can have up to 30% extra stock covered for no additional cost. Policyholders also have access to a 24-hour claims line as well as a legal and tax helpline for free advice during the week.
Covéa
A range of versatile commercial products is on offer through Covéa, including their retail and salons package product. Companies can tailor their insurance to their business needs, with the possibility to integrate cover for lost, damaged or stolen stock, deterioration of stock as well as goods in transit cover for products on the move. Any companies who take out a policy will have access to a free business and legal helpline for support and advice as well as a 24-hour claims helpline all year round.
Zurich
You can find cover for stock through several types of policy on offer by Zurich, such as their shop insurance package and their solution designed for manufacturing businesses. Their shop insurance policy includes a vast range of cover features, including stock cover and goods in transit. For companies trading in frozen goods, Zurich offers a specialist deterioration of stock policy to cover products spoiled by a rise or fall in temperature which is the result of damage or a breakdown to the refrigeration system. These products are only available through a broker.
J Bennett & Son (Brokers)
Founded in 1908 and now one of the largest independent insurance brokers in the south of England, J. Bennett & Son offer flexible stock insurance solutions. They can arrange cover for seasonal increases or on a declaration basis, which relies on regular stock takes so that you only have to pay to cover the items you are storing at a given time. They can also insure both stock on-premises as well as goods in transit, and they can find suitable cover for high-risk stock such as cigarettes, alcohol or mobile phones.
Optional extras include accidental damage, specialist deterioration cover for chilled or frozen stock and protection against shoplifting. You can get in touch via email or over the phone to talk through your options.
Churchill
Small businesses can secure up to £5,000 of stock with Churchill’s business equipment and stock cover, which comes with up to £10,000 of business equipment as standard, including mobile phones and laptops. This form of cover is available as an extension to any small business insurance package, alongside public liability insurance and employers’ liability insurance. You can get in touch with an agent over the phone or enter some company details to obtain a quote using their online tool.
Premierline
Stock insurance is available from Premierline as part of specific policy packages designed for particular business-types across a broad range of industries. Some of their products include beauty salon insurance, nail technician insurance, coffee shop insurance, gym insurance and even nightclub insurance. Premierline can integrate stock insurance into any of these policies, with bespoke coverage suitable for the typical kinds of stock found in these businesses. Premierline has an excellent customer service rating on Feefo with experts on hand to arrange tailor-made cover over the phone.
NIG
One of the more extensive options available to cover your stock is the integrated stock cover in NIG’s business insurance package. NIG provide up to £5 million in material damage for contents and stock. Alongside this, they offer a free extension of 25% or £500,000 (whichever is the lower) to the stock in trade sum insured to reflect seasonal increases in November and December as well as the several weeks before and after bank holidays. Goods in transit cover up to £50,000 is available as an optional extra. You can access a quote through the online tool on NIG’s website.
Allianz
Allianz is one of the largest global insurers, with over 125 years of experience providing insurance solutions. Stock insurance is available as one of the components of the versatile commercial buildings and contents policy they offer in their business range. Companies can insure their stock against a variety of events including fire, storm, accidental damage, theft, subsidence and criminal damage. Policyholders can contact a UK-based claims service if anything goes wrong, and can also benefit from guidance from expert agents who can offer risk management services to help you mitigate threats. This line of products is only available through insurance brokers.
Summary
While your other insurance policies will cover the material damage, business interruption insurance aims to pay out and cover the loss of income that your business has suffered following a disaster..
Most business owners choose to add business interruption insurance to their existing business insurance policies, such as buildings or contents, or as part of a comprehensive business owner’s package policy. However, it is possible to take out a standalone business interruption insurance policy.
