Is your festive stock covered?

It’s vital operators make sure they are fully insured ahead of Christmas, firms say

The mistletoe is up, the drinks and food menus are in place and the parties are about to start.

Spirits gantry
Licensees should check their policy covers increased levels of stock over the festive period.

But licensees need to be aware that the extra stock they have bought for the festive season may not be properly insured.
Specialist business insurance brokers have warned that some stock insurance policies might not fully cover seasonal stock increases, which could include expensive drinks such as premium spirits and Champagnes.
“This can have serious financial consequences for a business following a claim,” warned Jeanette Bell of the Insurance Advisory Service.
“It is believed that up to 40% of businesses have not reviewed their level of insurance coverage in the last twelve months.
“Many businesses may, for example, be carrying more stock than when they originally took the policy out or based their building sum insured on market values rather than rebuilding costs.”
The importance of being “adequately” covered by a policy in the run-up to Christmas is important because “the average clause” can apply to firms if they are underinsured, said Bell.
This clause restricts the amount which can be paid out from exceeding the value of the property.
By checking their current policies operators might be able to avoid the worst-case scenario, as highlighted by Paul Roach of insurance broker Businessinsure.
“For most companies, the nightmare scenario is that they arrive at work to discover that their entire stock has been stolen or damaged by fire or flood overnight,” said Roach.
“Whatever the cause, the outcome is simple – within the space of a few hours their stock is gone.
“This is the time when businesses want to be confident they’re covered for the full value of their stock.”