Goods insurance
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.Damage is caused by, for example:
- fire
- water
- theft
It covers the products you are going to sell. And the raw and supporting materials you use to make your products. For example:
- semi-finished products
- cleaning agents
- fuels
- packaging
Difference with inventory insurance
Goods insurance cover everything intended for sales. It does not cover your inventory. Inventory insurance covers the business assets you need to get work done. For example, computers, desks, chairs, or tools.
Do you keep stock at home?
Do you keep your stock in your own home, for example, for a online shop you run form home? Your personal home contents insurance (inboedelverzekering) does not usually cover your business stock. In some cases, you can ask your insurer to add this cover. Alternatively, you can specify your own address as the storage location when taking out stock insurance.
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
- your stock is of great value
- you cannot absorb the loss of stock yourself
- your business operations depend on the available stock
Goods insurance is not mandatory.
In the event of damage, you receive the replacement value
Insurance firms usually pay the cost of replacing the damaged stock. This is called the replacement value (vervangingswaarde). Exactly how this value is calculated varies per insurer and policy terms.
What is usually covered by goods insurance?
Goods insurance usually covers you against:
- damage to your trading stock
- damage to raw and secondary materials
What is and is not covered by your insurance depends on your insurance company and the terms and conditions of your policy. So, read these policy terms and conditions carefully. For example:
- damage is covered when caused by fire, theft or vandalism
- damage is covered at the location you have specified
- damage is not covered when caused by an earthquake, groundwater, or a brief power cut
- damage is not covered when occurred elsewhere, such as during transport
Also check how to secure your property against burglary
The insurer will assess whether you have done enough to prevent the damage. For example, whether you had fire alarms, or good locks on your doors and windows. If you have not done enough, the insurer may limit or refuse to pay compensation.
What is usually not covered by goods insurance?
- damage to your business assets. For this, you need inventory 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 (bedrijfsschadeverzekering)
- damage you caused intentionally
- 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 damage insurance policies. You are then insured for several types of damages at once. This often means you pay a lower premium.
So, you can combine goods insurance with inventory insurance. Then both the goods in your inventory and your business assets are insured.
Sometimes you 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.