The Association of British Insurers has issued a warning to UK businesses that may be stockpiling to check that their cover remains adequate for their needs.
This timely reminder comes against the background of a number of industries reporting that businesses have been stockpiling or increasing buffer stock to reduce any losses caused by delays in supply in the event of a no-deal Brexit.
Whether there is a Brexit deal or not is irrelevant to the potential problems that may face businesses stockpiling.
There are two key issues for businesses to consider;
- Is the sum insured under my policy adequate to cater for increased stock levels? If this is not the case then any claim may be subject to a reduction as a result of the under insurance.
- Is any buffer stock stored at a location that is currently insured under the policy? This may be catered under the policy by named location or by unspecified third party locations but the key aspect is to confirm that any stock, buffer or otherwise is insured under the policy.
For more information or clarity on these points you should contact your insurance broker or call us direct to discuss.