How stocking up on supplies can affect your insurance


With material shortages causing the cost of supplies to rise, it seems logical to stock up on materials while you can to keep yourself in business and safeguard yourself.

Aside from being costly in the first place, stockpiling your supplies might not be such a good idea, especially if anything goes missing or is damaged. This is because your insurance might not actually cover the extra supplies you’ve purchased.

Given the rise in the value of your materials and the fact that you might have purchased more for the future, you’ll need to make sure that your stock sum insured reflects this.

Whether you have your materials listed in your property damage policy, or you’re covered for offsite storage under your Contract Works policy, it’s important that you review this to make sure the total sum insured is in line with how much it would cost to replace your supplies if anything goes wrong.

It’s best to chat to an adviser about making sure you have cover where you need it, especially if you’re covered under a Contract Works policy. This is because any offsiteoff site coverage usually requires you to prove that the materials have been allocated to a particular contract that’s already underway. If you’re just storing materials offsite for some time in the future, they might not actually be covered under your Contract Works policy.

Now’s the best time to look at the cover you have in place, especially with the rising costs. As we’ve seen, when times are tough and materials are expensive, that’s when you see an increase in activities like theft and vandalism, particularly within the construction industry.

The last thing you want is to be underinsured should the worst happen, so get in touch with us. With yards of industry expertise, our team will make sure that you’ve got just the right cover in place to prevent you from being out of pocket, and potentially out of business.

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