The Association of British Insurers (ABI) is urging companies who are stockpiling goods and raw materials ahead of Brexit to check that they remain fully insured.
This comes amid widespread reports that, from car parts to frozen food, deodorant to drugs, many firms are stockpiling ahead of Brexit. A recent report showed that firms were stockpiling goods at the fastest rate in over 25 years, with warehouse space for frozen food at or near capacity.
The ABI is concerned that some firms who are stockpiling may have overlooked the possible insurance implications and is urging them to check the terms and conditions of their commercial cover and, if needed, speak to their insurer or insurance adviser to ensure they have sufficient cover in place. For example:
-There will usually be a limit on cover for stock on the premises under commercial contents policies. While there may be cover for temporary fluctuations, firms should check that any additional stock can be covered by increasing the sums insured. If transporting extra stock, you should also check your commercial motor or goods-in-transit policy
-If you are temporarily storing additional stock or raw materials off site in a warehouse, check the cover under your commercial policy, and the extent of any cover provided by the warehouse firm.
-Check the policy terms and conditions to see if there are any restrictions on the amount of stock or raw materials that you can hold, and the way in which they are stored as, for example, there could be an increased risk of fire. If unsure then talk to your insurer or insurance adviser.
Mark Shepherd, ABI’s Assistant Director, Head of General Insurance Policy, said:
“Many firms have been taking steps they consider necessary, such as stockpiling, to minimise the disruption of any possible no-deal Brexit. In doing so it is vital not to overlook any possible insurance implications. We urge firms preparing for Brexit to follow our advice to make sure they remain adequately covered, and to seek advice from their insurer or insurance adviser if in any doubt.”
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