Understanding Stock Insurance

Stock insurance covers the cost price of your stock. Key stock lines typically include raw materials, work in progress, finished goods and office supplies. Stock insurance is available for each stage of the production and manufacturing process; each policy will have its own scope of coverage and terms and conditions.

Essentially, if your stock is damaged, destroyed or stolen, Stock Insurance ensures that you will get the funds to buy new stock based on the cost price of the old stock (not the RRP). Regardless of whether you trade inside or outside, regularly or infrequently, you should consider your insurance requirement for stock.

What kind of cover is available under Stock Insurance?

  • Cover to replace insured stock if damaged, destroyed or stolen
  • Seasonal increases for stock
  • Deterioration of Stock – such as frozen or refrigerated items including food stuffs, medicines and other perishable goods

You may need to check if you need to insure stock held by third parties such as distributors, good in trust (items owned by third parties that you hold in trust), or while your stock is in transit. For more information, speak to our insurance specialists.