Goods insurance

Published by:
Netherlands Chamber of Commerce, KVK
Netherlands Chamber of Commerce, KVK

Goods insurance insures you against damage to the goods you sell or need to make a product. Damage caused, for example, by fire, water, or theft. It does not cover damage to your inventory.

What is goods insurance?

Goods insurance insures you against damage to your stock. It covers the products you are going to sell. And the raw and auxiliary materials you use to make your products. For example, semi-finished products, finished products, cleaning agents, fuels, and packaging.

Goods insurance does not cover your inventory. Your inventory consists of the business assets you need to get work done. For example, computers, desks, chairs, or tools. You need inventory insurance to cover damage to these assets.

When is goods insurance useful?

Goods insurance is particularly useful if you have a lot of trading stock and raw materials to make your products. Insurance companies usually do not pay your sales price after damage. Your purchase price is reimbursed. This is also known as the replacement value. The amount you need to replace your stock.

Goods insurance is not mandatory.

What is usually covered by goods insurance?

Goods insurance usually covers you against:

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

Your policy states the conditions under which your insurance company will pay out, for example, after damage caused by fire, water, or theft.

What is usually not covered by goods insurance?

  • damage to your business assets. For this, you need inventory insurance
  • damage to your premises. For this you need buildings insurance
  • damage while transporting your goods. For this, you need cargo insurance
  • indirect damages such as loss of income. For this, you need business interruption insurance
  • damage caused by intent
  • damage caused by poor maintenance
  • damage caused by illegal activities
  • damage caused by natural disasters, such as earthquakes and floods

Many insurers allow you to combine the various damage insurance policies. You are then insured for several types of damages at once. This often means you pay a lower premium.

Goods and inventory both insured

Some insurance companies will combine goods insurance with inventory insurance. Then both the goods in your inventory and your business assets are insured. However, you often have to take out separate insurance for certain inventory assets. For example, for equipment and electronics. Always ask your insurance company which assets are insured with inventory insurance, and which are not.