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Goods insurance and Inventory insurance

This information is provided by:Netherlands Chamber of Commerce, KVKNetherlands Chamber of Commerce, KVKNederlandse versie

When something happens to your business premises, property inside might also be at risk. For example, equipment or computers you need to do your job, your inventory. But also goods that you sell or need to make a product with.

With goods insurance you are insured against damage to your goods. Inventory insurance covers you against damage to your inventory, usually including electronics and computers. These insurances cover you, for example, in the event of fire, water damage, vandalism, or theft.

What are goods?

Goods means your trading stock. Including the raw and auxiliary materials you use to make your products. For example, semi-finished products, end products, cleaning agents, fuels, and packaging.

For whom is goods insurance useful?

Not every company runs the same risks. For example, if you have a factory with a lot of trading stock and raw materials to make your products, goods insurance could be a good choice. Keep in mind that an insurer usually does not pay your sales price. Your purchase price will be reimbursed. This is also known as the replacement value, which is the amount you need to replace your stock.

What is an inventory?

An inventory is everything your business uses to get the job done. For example, computers, desks, chairs, or tools. So these assets are not intended for sale. Checks and other security papers (such as postage stamps), motor vehicles, trailers, caravans, ships, and aircrafts are not included in an inventory.

For whom is inventory insurance useful?

Inventory insurance is particularly interesting when your business assets are valuable. Or if you cannot do your job without those company resources.

Is it mandatory?

Both goods insurance and inventory insurance are not mandatory.

What is usually covered by goods insurance?

  • Damage to your trading stock
  • Damage to raw and auxiliary materials

What is usually covered by inventory Insurance?

  • Damage to your inventory

When do the goods insurance and inventory insurance pay out?

If your policy states that you are covered for what happened to you. Common causes are: fire, water damage, vandalism, or theft

What is usually not insured?

  • the damage to your property. You need a buildings insurance for this, or home insurance if you work from a home office
  • damage due to the temporary interruption of your company‚Äôs activities. You need consequential loss insurance for this
  • damage caused by intent
  • damage caused by poor maintenance
  • damage caused by illegal activities
  • damage caused by natural disasters, such as earthquakes and floods

Goods and inventory both insured

Many insurers allow you to combine the various casualty insurance policies. You are then insured for multiple damages at once. You often pays less premium. Some insurance companies already combine goods insurance with inventory insurance. Then both your trading stock and your business assets, such as your computers and equipment, are insured.

How do you insure a home office?

If you have an office or other workspace at home, you should separate private and business use of inventory as much as possible. If you have equipment in your home that you use for business, such as a laptop, printer, or photo camera, check with your insurer. They can tell you what the consequences are for your private insurance and whether you need additional business insurance. In general, your household insurance covers your private belongings. Your home insurance covers the building itself. Those insurances do not cover any damage to business assets or workspaces.

Do you have any questions?

Contact KVK: Service and contact Chamber of Commerce or ask other entrepreneurs for advice on Higherlevel.nl

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