What is Warehouse insurance?
Warehouse insurance is a policy that protects the physical structure of your warehouse from unforeseen events. If your warehouse gets damaged due to things like fire, storms, theft, or vandalism, this insurance helps cover the costs of repairs or rebuilding and saves you from financial setbacks.
What is Inventory insurance?
Inventory insurance covers the goods and products stored in your warehouse. If something happens to your inventory, like it gets damaged, destroyed or stolen due to natural or manmade events, the policy helps recover the value of the lost stock. Therefore, having this insurance in place ensures financial security and peace of mind.
Warehouse and Inventory insurance policy
Many insurance companies offer warehouse and inventory insurance together, which is a great option if you are looking for comprehensive coverage for your business. By opting for this insurance product, you can protect the warehouse structure as well as the products inside. This can save you time and money, as it is usually more cost-effective than purchasing separate policies.
Suppose you run a business that stores electronics in a warehouse. If a fire damages the warehouse building, warehouse insurance will help cover the cost of repairs. At the same time, if the fire also damages the electronics stored therein, the inventory insurance will cover the value of those damaged goods. This way, one policy safeguards both your warehouse and inventory, making it easier to manage.
Warehouse and Inventory insurance – inclusions
A warehouse and inventory insurance policy may cover damage and loss due to the following:
- Theft, burglary, housebreaking, etc.
- Fire and similar perils, such as lightning and explosions
- Malicious acts, such as strikes, riots and vandalism
- Natural disasters, such as floods, storms, cyclones and earthquakes
- Accidental damage during handling, loading, transportation and unloading
- Spillage or leakage of goods
Warehouse and Inventory insurance – exclusions
The following are not covered under this policy:
- Loss due to gradual deterioration, wear and tear, lack of maintenance or negligence
- Wilful misconduct or loss caused by intentional acts
- Loss or damage due to the inherent nature of goods, such as the inherent tendency of perishable goods
- Loss or damage resulting from war and war-like activities
- Loss or damage caused by pollution or contamination
Benefits of choosing tailored Warehouse and Inventory insurance
The following are the benefits of choosing tailored Warehouse and Inventory insurance for your business:
- Complete protection: A customised Warehouse and Inventory insurance policy ensures that both your warehouse and inventory are covered against risks like fire, theft or damage. This gives you peace of mind knowing that everything is protected against the unexpected.
- Cost-effective: A tailored, combined policy can be more affordable than buying separate coverage for your warehouse and inventory. When you choose a customised plan, you only pay for the coverage you need, which can help you save money.
- Flexibility: With the option to customise the policy, you can choose specific coverage options that suit your business. For example, you can add protection for stock in transit or cover valuable items. You have the flexibility to adjust the policy according to your needs and budget.
- Minimised risks: When you have a policy tailored to your exact requirements, you won’t have to worry about gaps in coverage. If any covered event occurs, your insurer will come to your rescue. Additionally, you won’t have to pay for unnecessary add-ons, making a customised plan easier on your pocket.
- Streamlined process: Managing one combined policy is easier than dealing with multiple policies. You will only need to track one renewal date and work with a single insurance provider for any claims. Therefore, choosing a combined and customised plan makes the entire process simpler and less time-consuming.
- Faster claims process: If you choose a customised policy that covers all aspects of your business, you will face fewer complications when filing a claim. With one policy covering everything according to your needs, the claims process becomes more straightforward.
Conclusion
Protecting your warehouse and inventory with a tailored insurance solution gives you peace of mind and helps keep your business secure. You can customise the policy to fit your needs, ensuring that both your warehouse and the goods inside are covered from various risks, such as theft, damage or natural disasters. For smaller retail businesses, similar coverage can often be found under shop insurance policies.
With the right insurance in place, you can avoid financial setbacks if an unforeseen event occurs. This allows you to focus on growing your business without worrying about unexpected losses.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It is advised to verify the currency and relevance of the data and information before taking any major steps. Please read the sales brochure / policy wordings carefully for detailed information about on risk factors, terms, conditions and exclusions. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.