Stock insurance

Stock insurance is a type of commercial property insurance that covers inventory owned by businesses, such as clothing for apparel retailers and electronics for gadget stores. Insurers calculate stock insurance premiums based on total inventory value, using methods like average or peak stock levels reported by businesses in manufacturing, wholesale, and retail sectors.

Policies typically protect against losses from fire, theft, vandalism, lightning, and storm damage; for example, State Farm and The Hartford offer coverage for warehouse goods damaged during riots. Exclusions often include loss due to gradual deterioration or deliberate acts; Travelers and Nationwide explicitly list wear-and-tear as an exclusion.

Businesses document stock value with purchase invoices and stock registers when filing claims; Chubb requires dated inventory records within 30 days of a loss event. Stock insurance frequently forms part of broader commercial property policies rather than standalone policies; Liberty Mutual packages it with business interruption coverage.

Underinsurance penalties apply if declared values are less than actual stock held–Allianz imposes a proportional settlement clause if inventory value is understated by more than 10%. Temporary increases in stock, such as holiday season surges at toy retailers and florists, can be covered using “stock declaration” or “fluctuating stock” clauses offered by companies like Zurich.

Premiums for $100,000 of insured stock average between $600–$1,200 annually across major insurers like Farmers and Hiscox. International shipments stored temporarily in the U.S.

Such as auto parts held for distribution firms, require specific endorsements within standard policies offered by AIG and CNA. Stock insurance does not automatically cover goods-in-transit unless marine cargo add-ons are purchased through carriers like AXA XL, as stated by YourInsurance.info.