Stocked-up on Shop Insurance?

With the cold weather still persisting, it looks increasingly like we are going to bypass Spring entirely and leap straight from Winter to Summer. So it should come as no great surprise that the latest figures from the UK High Street show sales of Spring wear is down significantly on previous years.

The slump in sales leaves many retailers carrying an excess of stock – and while that means great news for the consumer (think flash sales and huge end of season price cuts) it leaves shop owners vulnerable.

Not just because takings are down on the same period last year. Nor because the impending arrival of summer stock leaves them struggling for space on the shop floor.

But largely because the stock held on the premises could now be significantly undervalued by the retailer’s shop insurance policy.

Shop insurance, like a home contents policy, protects the stock and contents of a store against theft or damage from fire and flood. And just like a home policy, an increase in the value of your contents needs to be communicated to your insurer.

If it isn’t, all your stock won’t be covered in the event of an accident – and you could find yourself seriously out of pocket.

Shop Insurance

Some shop insurance policies do account for seasonal fluctuations in stock, with many increasing the stock valuation by 10% in the run up for Christmas where held stock is traditionally at its highest.

But there won’t be too many policies around that are prescient enough to foresee slow Spring sales – so it’s up to store owners to re-value the stock and ensure there’s cover in place for all of it.

Of course, while you’re reviewing your valuations, it might be an appropriate time to review your shop insurance as a whole. It’s been a tough time for retailers in the last few years, and any opportunity to protect your business (while saving money into the bargain) can be no bad thing.

At QuoteRack we have a number of specialist shop insurers ready to provide you with a competitive quote that might, if nothing else, give you bargaining power with your current shop insurance provider.

So go ahead and save yourself some money on your shop insurance; it might make up in some small way for the Spring that never was!