By Emma Hughes, New Business Broker
The final quarter of the year brings about increased levels of activity within the retail sector. The surge in consumer demand sees the stockpiling of goods, greater number of staff and longer working hours. During this hectic time it is unlikely you will stop to think; am I covered for this?
Check and Don’t Chance
You may find that the increased stock you are holding over the festive period leaves you open to underinsurance. In the event of underinsurance the insurers will apply the clause of Average. The clause of Average influences how much of a claim will be paid. For example, if you have insured your stock for £10,000 but during the month of December this increases to £20,000 then the Average Clause would be applied and any claim would be reduced by 50% in-line with the underinsurance.
Some Insurers may offer a ‘Seasonal Stock Increase’ extension to their Retail packages. This extension offers a discretional increase of 20% to 30% typically during the busier months. It is important to check whether this extension is included and whether the uplifted sum is adequate to cover your increased exposure. If you are unsure then it is best to make insurers aware immediately of the change.
It is also important to make insurers aware of any other changes that may happen over the festive period; from Santa Clause meet & greets to the loaning of a Fork Lift Truck in order to move stock more easily. Anything that is out of the ordinary for your business needs to be disclosed to insurers.
Erimus Insurance Brokers is a trading name of Teesside Insurance Consultants Ltd. Registered in England No. 2043783.
Authorised and regulated by the Financial Conduct Authority No. 307660.
Directors: P.J. Davison, S.D.E. Hughes, I. Miller ACII, S.S. Pinnell. Non Executive Director: G. Lumby MBE, FCIBS.
Company Secretary: C. L. Nolan.