What is Business Stock Insurance?
Business stock insurance refers to the goods, products, or merchandise sold by a business. It can help cover the costs associated with replacing inventory or any stock if it becomes lost, stolen, or damaged. If your business relies upon physical products, you may want to consider purchasing business stock insurance as it can help protect your business financially in the event of a covered loss.
Business stock insurance is included in HomeHQSM coverage by PolicySweet®. Business liability and business property insurance are two other types of coverage that are included in a HomeHQ policy. The combination of all three coverages can help to protect home-based business owners and their business assets.
What Does Business Stock Insurance Cover?
Any products sold by your company are typically covered by business stock insurance. It may include raw materials stored at your business facilities that are used to make sellable items and products that are in the process of production. It may also include items that your business has sold but not yet delivered to a customer.
With a business stock insurance policy your business could be reimbursed for the cost to replace lost or damaged stock that your business handles on a regular basis.
Some examples of claims that a business stock insurance policy may cover, include:
- Fire
- Water damage
- Vandalism
- Theft
It is recommended to check the conditions of your insurance policy or to speak with one of our insurance experts to discuss policy options and to determine what can be covered by a business stock insurance policy.
How Do I Purchase Business Stock Insurance?
Get the coverage you need to protect your business assets against loss. To get started follow the steps below for HomeHQ coverage:
Get a Quote Now >
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What Is Not Covered by a Business Stock Insurance Policy?
The events covered by a business stock insurance policy can vary between insurers. However, most business stock insurance policies usually do not cover loss or damage of inventory for the following events:
- Damage caused intentionally
- Damage as a result of company negligence
- Damage caused by earthquakes or floods
What Businesses Obtain Stock Insurance?
Several companies depend on selling products to make a profit and for most companies having inventory on hand can be a major investment. Does your business have the necessary cash flow to replace its inventory if it were to become damaged, lost, or stolen?
Business stock insurance can help protect valuable company assets and put your mind at ease in the event of an unexpected disaster. A few businesses that obtain business stock insurance include:
Reasons to Obtain Stock Insurance:
Stock insurance is considered crucial for any business that holds a high amount of stock especially for businesses that cannot perform business activities without inventory or relies on having a stock. There are several reasons you may want to consider business stock insurance including:
1.) It can help protect your business
Stock insurance can help protect you from business-damaging losses like fire, vandalism, and theft. Without stock insurance you could lose out on the sale of damaged or stolen items. Your business would also have to cover expenses to repair or replace inventory out of its own pocket.
2.) It can reduce the impact of an incident
As with most business insurance policies, insurance can help to protect your business against certain risks. Stock insurance can help protect business merchandise from the risks associated with becoming damaged, lost, or stolen. By having business stock insurance your business could be compensated for the loss of sales as well as reimbursed for the replacement of business assets.
3.) It can provide you with peace of mind
If you are concerned about the potential risk of having to replace business stock, then you may want to consider stock insurance. Having stock insurance can provide you with peace of mind and could provide reassurance that your business could be protected if an unexpected event occurs.
How Much Does Business Stock Insurance Cost?
The cost of business stock insurance will depend on several factors, such as:
- The type of business you own
- The location of your business
- The type of stock you manage
- The amount of inventory you keep on hand
- The value of the items you sell
- Your claims history
- Additional factors
A business that manages stock items with high value will typically pay a larger premium amount as there is a greater chance of theft and a higher cost to repair or replace the items.
When obtaining stock insurance, it is important to provide accurate estimates of the value of your business inventory. Otherwise, your business could be underinsured, and it may have to cover the remaining cost to replace stock levels. One of the best ways to make sure your business is protected against the unexpected is to receive a quote. Get a quote suited to the needs of your business now >