Insurance
Stock Insurance
Insurance on the goods a shop or a godown holds, against fire, burglary, flood and allied perils. Stock is usually the largest asset a retailer owns and the one least often insured, because the building is covered by a landlord policy that says nothing about the contents.
What you get
- Fire, burglary, flood, riot and allied perils on stock and contents
- Declaration basis available where stock value swings across the season
- Shop building, fixtures and plate glass covered on the same policy if required
- Business interruption cover for lost trading days after an insured event
- Money in transit and money in safe added where the trade needs it
- Sum insured set against actual stock value, since underinsurance cuts every claim proportionately
FAQ
About stock insurance
What happens if the stock is worth more than the sum insured?
The claim is scaled down in proportion. Insuring stock worth twice the sum insured means roughly half of any claim is paid, even a small one. This average clause catches more shopkeepers than any exclusion does, so the declared value is worth revisiting each renewal.
Stock value changes a lot across the year. How is that handled?
On a declaration policy the trader reports stock periodically and the premium adjusts against the average held, rather than paying all year for a peak that lasts a season. It suits seasonal trades; it needs the declarations to actually be filed.