Your stock sum insured – you might think this is a relatively straight forward sum insured to calculate, but there are a number of items to consider that might not be immediately obvious – it is not just the value of your finished product or the cost of raw materials.
When calculating your stock value you should also consider whether you have any of the following:
- Stock in the Open – have you any stock stored outside of your premises in the open? This will need to be identified to insurers.
- Goods in Trust – are you responsible for any items that you do not own?
- Non-Ferrous Metals – any precious metals need to be separately identified
- Work in Progress – remember to include work in progress – this can be a substantial element of your overall stock sum insured.
On what basis is stock covered? It is important to realise that cover is on an indemnity basis – claims will be settled on the basis of replacement cost i.e. the cost of the raw materials plus any value added by you . You must ensure you have the correct sum insured so in the event of a loss, insurers can put you back on track as if the loss had not occurred. Please be aware that should the sums insured on a policy be undervalued, a claim may be reduced proportionally in line with any under-insurance.
Are you fully covered? The team at ProAktive is available to assist if you wish to discuss any of the above. Call us on either 01302 341 344 or 0114 243 9914.
By Sam Geddes, Corporate Account Handler.