Inventory insurance

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

Inventory insurance covers damage to your inventory. This usually includes electronics and computers. Damage caused, for example, by fire, water, or theft. It does not cover damage to your goods.

What is an inventory?

An inventory is anything your business uses to get work done. For example, computers, desks, chairs, or tools. So, these are business assets that are not intended for sale. Cheques and other securities (such as stamps), motor vehicles, trailers, caravans, ships, and aircraft are not included in an inventory.

Goods are also not included in your inventory. Goods are your trading stock. Including the raw and auxiliary materials you use to make your products. You will need separate goods insurance to cover damage to your goods.

When is inventory insurance useful?

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

Is inventory insurance mandatory?

Inventory insurance is not mandatory.

What is usually covered by inventory insurance?

Damage to your inventory.

When does inventory insurance pay out?

When your policy states that you are covered for what has happened to you. Common causes include fire, water damage, storm, vandalism, or theft.

What is usually not insured?

  • damage to your property. For this you need buildings insurance, or home insurance if you work from home
  • damage to your goods and stock. For this, you need goods 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.

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 purposes, such as a laptop, printer, or camera, check with your insurer. They can tell you what the consequences are for your private insurance and whether you need additional business insurance.