Unless your business is drop shipping, stock is often the most significant asset a retail, wholesale or manufacturing business has. When insuring stock it's important to understand that it's the replacement value of the stock that you are insuring not the sales value.
It is vitally important to understand at what point you take ownership and responsibility for your goods under the contract of sale with your supplier/manufacturer. Who is responsible for the goods when they are being shipped and/or warehoused? This is especially important if you are importing goods as, depending on where they come from, they may be transported by ship and will certainly spend some time sitting in a customs warehouse.
Marine Cargo insurance is a must so you don't lose your stock investment before it is delivered. If you are relying on shippers insurance then it’s important to understand the extent of protection provided by that, as there are limitations to the amount that can be claimed which are determined by various international conventions. If you are shipping high value items this may result in a shortfall.
This is a relatively complex area of insurance and one that you should definitely talk to a professional about. If you are importing it is something you absolutely need to research and budget for at the planning stage.
It is also important that when you set the value of your stock you consider whether your business is seasonal. Do you hold higher stock levels in the run up to Christmas or perhaps in the run up to the Summer holidays if you are, for example, a swimwear retailer?
If you need some help or quotes get in touch