Inventory insurance

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 supporting 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.

Inventory insurance is not mandatory.

What is usually covered by inventory insurance?

Damage to your inventory.

Your insurance policy specifies the situations in which the insurance will pay out. Common causes that are covered include:

• fire
• water damage
• storm
• vandalism
• theft

The insurer will assess whether you did enough to prevent the damage. For example, whether you had fire alarms or good locks on your doors and windows.

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 you caused intentionally
• damage caused by poor maintenance
• damage caused by illegal activities
• damage caused by natural disasters, such as earthquakes and floods

Combine inventory insurance and goods insurance

Many insurers allow you to combine different types of non life insurance products. This means you are insured for multiple types of damage at once and often pay a lower premium. For example, you can combine inventory insurance with goods insurance. This means that both the goods in your stock and your business assets are insured. Sometimes you will need to take out separate insurance for certain business assets, such as equipment and electronics. Ask your insurance company which business assets are insured under the inventory insurance and which are not.

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 home contents insurance (inboedelverzekering) or whether you need additional business insurance.